The IRS may be reviewing your refund for 45 to 180 days due to income verification (CP05 notice), suspected identity theft, errors/incomplete forms, or mismatches in claimed credits like EITC or ACTC. This review ensures accuracy and often involves checking information against third-party documents.
However, certain circumstances like reviews for errors, incomplete information, or identity verification can extend this period. By law, the IRS generally has up to 45 days from the date of the filing deadline to issue a tax refund without owing the taxpayer interest.
Tax refund delays can occur due to processing backlogs, errors, or missing information. Filing close to deadlines may extend processing times. Taxpayers should check the IRS ``Where's My Refund?'' tool online using their Social Security number, filing status, and refund amount.
What should I do? Request an expedited refund by calling the IRS at 800-829-1040 (TTY/TDD 800-829-4059). Request a manual refund expedited to you.
We could take up to 60 days to complete this review. Please don't contact us prior to 60 days from the date of this notice since we won't be able to provide you any additional information. You can check your refund status at www.irs.gov/refunds or the IRS2Go mobile app for smart phones.
The CP05 notice is mailed to taxpayers to notify them that the IRS needs more time to verify your income, income tax withholding, tax credits and/or business income.
The IRS has no maximum time limit when it comes to processing tax refunds, but after 45 days, it is required to pay interest on your refund. In most cases, you can expect the IRS to issue your tax refund within 21 days of filing your tax return.
The IRS uses a combination of automated and human processes to select which tax returns to audit. Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit.
Usually, it takes 4-5 weeks for the refund to be credited to the account of the taxpayer. However, if refund is not received during this duration, the taxpayer must check for intimation regarding discrepancies in ITR; check email for any notification from the IT department regarding the refund.
You generally shouldn't worry if your refund is "still being processed," as it means the IRS is working on it, but it might take longer than the typical 21 days due to common issues like errors, incomplete information, or claiming credits like the EITC/ACTC. Worry only becomes necessary if you receive an IRS letter requesting more information or if the "Where's My Refund?" tool shows a specific problem like fraud, but typically, it just means a longer wait, not no refund at all.
There's no strict maximum limit for how long the IRS can hold a refund, but they must pay interest after 45 days; while most e-filed returns take 21 days, returns needing extra review for errors, fraud, or certain credits (like EITC/ACTC) can take months (45-180+ days), and amended returns can take 8-16 weeks, with unfiled returns having an indefinite delay until filed.
If your transcript still shows code 570 after six months, the refund may be stuck in review. Call the IRS at 800-829-1040 and ask for a refund-hold review to see what's causing the delay. If it's been over 120 days, you might reach out to the Taxpayer Advocate Service since sometimes they can escalate stalled cases.
Common IRS audit triggers
Why is my return being reviewed? (updated Aug. 7, 2024) While we accept most tax returns as filed, we select some for review. The IRS reviews some federal tax returns to determine if income, expenses, and credits are reported accurately.
If the IRS is reviewing your return, it may have questions about your wages and withholding, or credits or expenses shown on your tax return. The review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.
The IRS can hold your refund and request more information from you in several situations, causing IRS refund delays. This doesn't mean you're being audited—but it can lead to further delays if you don't respond with all the information by the deadline. Be patient, and don't worry.
A review does not automatically mean you are being audited. The IRS may only want to verify some details. If concerns persist, they might request more information. Most reviews end without a full audit.
Employees will review and either manually release the refund or confirm the error. If an error is confirmed, a notice will be sent to the taxpayer either requesting additional information or informing the taxpayer the error has been corrected through the IRS's math error authority.
District offices select returns randomly sometimes for special research programs, but generally the returns are selected because they have good audit potential. The potential is discovered by a computerized system called the Discriminant Function System (DIF). In most cases, the decisionmaker is not the auditor.
The stages of an IRS refund are: (1) Return Received, where the IRS acknowledges receipt of your return; (2) Return Reviewed, where the return is checked for accuracy; and (3) Refund Approved/Sent, where the refund amount is finalized and issued.
The IRS doesn't have a strict maximum time limit for issuing refunds, but generally processes e-filed returns with direct deposit within 21 days, while paper returns take 6 weeks or more, with longer waits for those claiming certain credits (EITC/ACTC) or if errors occur. If the IRS holds your refund for more than 45 days past the tax deadline (or filing date if late), they owe you interest, but significant delays (months) can happen for complex issues or extra reviews, sometimes requiring a mailed notice.