A tax return is placed "under review" (often indicated by a CP05 notice) when the IRS (.gov) needs more time to verify income, deductions, credits, or withholding. This usually indicates a potential mismatch with third-party data (like W-2s/1099s), SmartAsset.com discrepancies, or random selection, rather than immediate proof of fraud or error.
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.
Under Review Status: When your tax return is ``under review,'' it means that the IRS is performing additional checks for accuracy, completeness, or potential issues such as fraud. Interest: After the 45-day window, interest starts accruing on your tax refund until it's paid out.
Processing delays can occur due to identity verification, missing information, or complex return issues. If delays persist beyond typical timelines, consider contacting the Taxpayer Advocate Service for assistance in resolving prolonged processing problems.
If you file online and have direct deposit set up, you'll also get a refund sooner. If you mail in a paper tax return, it can take 8 weeks or more for the CRA to process it. But keep in mind that these are average timeframes. Several factors can impact how fast your return gets processed.
Your income tax and benefit return may be selected for review for a number of reasons, such as: the information on your return does not match the information received from third-party sources, such as T4 slips. the types of deductions or credits you claimed. your compliance history.
Generally, the amount of time is based on your filing date and you'll get your refund within 21 days after you e-file. (Paper filed returns can take much longer.) If you file before the IRS opens, you need to wait for the IRS open date (usually in late-January) before starting the 21-day clock.
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.
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.
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.
Unreported income
The IRS receives copies of your W-2s and 1099s, and their systems automatically compare this data to the amounts you report on your tax return. A discrepancy, such as a 1099 that isn't reported on your return, could trigger further review.
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.
We'll find a professional perfectly matched to your needs. Getting started is easy, fast and free. So, what does your tax return being reviewed mean? If your tax return is under review, the IRS is examining it to ensure that it is accurate and in accordance with tax laws.
Most federal tax refunds are issued within 21 days, but some may take longer if the return requires additional review. Once the IRS has accepted your return, TurboTax can't provide updates on where your refund is at.
Once the IRS completes the examination, it may accept your return as filed or propose changes. These changes may affect the amount of tax you owe or the amount of your refund.
Tax returns and refunds
Some tax returns need extra review for accuracy, completeness, and to protect taxpayers from fraud and identity theft. Returns that fall into this category can take longer to process. Disaster-related returns may take longer to process than tax returns not claiming disaster relief.
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.
If the IRS decides that your return merits a second glance, you'll be issued a CP05 Notice 1 . This notice lets you know that your return is being reviewed to verify any or all of the following: Your income. Your tax withholding.
Your refund is still being processed because of errors, incomplete information, suspected identity theft, complex credits (like EITC/ACTC), or a backlog, requiring extra review beyond the typical 21 days, with status updates available on the IRS Where's My Refund tool. Common causes include math errors, missing signatures, mismatched info, or claiming certain credits that trigger extra scrutiny.
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 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.
The IRS $600 rule refers to a change in reporting requirements for third-party payment apps (like Venmo, PayPal) for taxable income from goods and services, where platforms must send a Form 1099-K if you receive over $600 in a year, intended to capture gig economy/side hustle income, though delays and phased implementation have adjusted the timeline, with current rules for 2024 using a higher threshold ($5,000) before fully phasing to $600 for future years, but remember all taxable income, regardless of form, must always be reported.
Quick Answer. Your refund may be bigger based on new deductions from the One Big Beautiful Bill Act and inflation adjustments to the standard deduction and tax brackets. However, individual results will vary. Changes to your income, withholding and life circumstances can all affect your tax refund.