A tax refund review lasting longer than 21 days is likely due to errors, missing information, or manual verification, with reviews potentially lasting 45 to 180 days. Common causes include EITC/ACTC claims, identity theft suspicions, or debt offsets. You can track updates via the IRS “Where’s My Refund?” tool.
IRS Refund Delays: Understanding 60-Day Review Process Unclear refund status and limited IRS communication cause taxpayer frustration. When the IRS places a refund under a 60-day review, it may delay processing to verify information. This review typically lasts up to 60 days from the notice date.
The normal turnaround time for the IRS to accept your return is 24-48 hours. However, due to the number of stockpiled returns, it may take a little bit longer as their system is overwhelmed with early filers. This also applies to why there may not be a status showing on the IRS Where's My Refund site.
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.
– Receiving a paper refund check in the mail may take longer than choosing direct deposit. Most e-filed returns are processed within 21 days. – Paper-filed returns generally take 6 to 8 weeks for the IRS to process and send your refund.
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.
According to the IRS, most refunds are funded within 21 days of filing. However, you may receive your refund at a different time depending on how you choose to receive it or if IRS finds issues with accuracy, such as reconciling the amount of stimulus payment or advanced child tax credit received in 2021.
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.
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.
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.
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.
The main 2025 tax refund delay reasons include errors or incomplete information on returns, claims for the Earned Income Tax Credit or Additional Child Tax Credit, identity verification processes, amended returns, and offsets for outstanding debts. Paper returns and bank processing times can also contribute to delays.
The IRS Where's My Refund tool updates once daily, usually overnight, so checking more often isn't necessary; you'll see status changes as your return moves from "Refund Received" to "Refund Approved" and then "Refund Sent," with most e-filed refunds issued within 21 days, but it can take longer if there are errors or extra review needed.
Common IRS audit triggers
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.
Errors on or Incomplete Tax Returns: Your refund may be delayed for something as simple as a forgotten signature, mathematical errors or if the income reported by you doesn't match what your employer or other third-party payers have reported.
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.
A request for expedited processing must be made in writing and must fully explain the compelling reason. Granting expedited processing is at the discretion of the IRS.
One-time forgiveness, officially known as First-Time Penalty Abatement (FTA), is an IRS program that allows qualified taxpayers to have certain penalties removed from their tax accounts.
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.
You may face an IRS audit after an IRS review. If the IRS reviews your information and detects inaccuracies in your tax returns, it may conduct a comprehensive audit to look into the matter further.
Why you received IRS Notice CP05. The IRS selected your return for review to verify one or more items on the return. The IRS is holding your refund pending the outcome of the review.
For most people, it takes less than 3 weeks. That's because the IRS can quickly check most of returns and agree with the refund amount you asked for. But, in case the IRS needs to take a closer look at your return, the review process can take longer.
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.