IRS notice
IRS Notice CP05: What It Means and What to Do While You Wait
The IRS needs more time to verify income, withholding, credits or business income on your return; if you filed it, no reply is needed.
Read it and keep it
No reply is due if you filed the return; the date that matters is 60 days after the notice date, the point at which the IRS says to call if you still have no refund or further word.
CP05 means the IRS needs more time to verify the income, income tax withholding, tax credits or business income reported on your return. If you filed the return, you don't need to do anything; the IRS asks you to allow up to 60 days before contacting it. If you didn't file the return, someone may have used your information, and the IRS asks you to send a signed Form 14039 to the address on the notice.
What this notice is telling you
- Your return was selected for a closer check of income, withholding, credits or business income before the refund is released.
- The IRS says selection doesn't mean you made an error or were dishonest.
- If you filed the return, the notice is a heads-up, not a request; you don't need to reply.
- The IRS asks you not to call until 60 days after the notice date, and only then if you haven't received your refund or heard more.
- If you didn't file any return for that year, CP05 can be a sign someone filed one using your information.
What to do
Confirm the return is yours
Check the tax year on the notice against your records. If you or your preparer filed that return, there's nothing to send.
Keep your records handy
The IRS is checking income, withholding, credits and business income, so keep your Forms W-2 and 1099, credit records and business books for that year together in case a follow-up letter asks for them.
Track the refund, not the phone
Watch your refund status online or in the IRS app. Mark the date 60 days after the notice date on your calendar; the IRS asks you not to call before then.
If you didn't file, send Form 14039
Complete and sign Form 14039, Identity Theft Affidavit, and mail it to the address at the top of your notice. The IRS recommends sending it on paper for faster service in this situation.
Read any follow-up letter closely
If another IRS letter arrives during the review, that letter, not the CP05, sets what to send and by when.
If you filed the return
CP05 is one of the few IRS notices that asks nothing of you. The IRS selects some returns to confirm that income, expenses and credits are reported correctly, and it holds the refund while it does. Your job is to wait out the 60 days and keep your paperwork in order. If 60 days pass from the notice date and you have neither the refund nor another letter, that is the time to call.
Use the wait to look over the return yourself. If you spot something that was clearly wrong, such as income left off, it's worth getting advice on how and when to correct it rather than leaving it for the IRS to find.
If you did not file a return
Then the return being reviewed was probably filed by someone else using your information. Don't wait the 60 days. Fill out Form 14039, sign it, and mail it to the address at the top of the CP05. Afterward, an Identity Protection PIN can help stop a return from being accepted under your SSN or ITIN in future years.
How CP05 compares with other refund-hold notices
| Notice | What the IRS wants | Do you need to reply? |
|---|---|---|
| CP05 | Time to verify income, withholding, credits or business income | No, if you filed the return |
| Letter 12C | Specific missing information to finish processing | Yes, within 20 days |
| 5071C / 4883C | Confirmation of your identity and the return | Yes, by verifying |
| CP75 | Documents supporting the Earned Income Credit and related credits | Yes, with the requested documents |
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Bring the notice to a free consultation, in person on James Island or by video. We read it with you, tell you what it means for your account and, if you want us to, take over the response once you sign Form 2848.
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Sources
By Haigler CPA Group. Updated . Notices are revised from time to time, so go by the wording and dates on your own notice. The information on this site is general in nature and is not tax, legal, or accounting advice for your situation. Tax law changes and the right answer depends on facts we would need to review with you. Please speak with a qualified professional before acting on anything you read here.
Questions about CP05
Does a CP05 mean I did something wrong on my return?
Not necessarily. The IRS says it selects some returns to confirm income, expenses and credits are reported correctly, and that this doesn't mean you made an error or were dishonest.
When should I call the IRS about a CP05?
The IRS asks you to allow up to 60 days from the date of the notice. Call only if you haven't received your refund or heard from the IRS by then.
Do I need to send documents with a CP05?
No. If you filed the return, the IRS says you don't need to take any action. If you later receive a letter asking for documents, follow that letter.
What if I never filed the return the CP05 refers to?
Complete and sign Form 14039, Identity Theft Affidavit, and mail it to the address at the top of the notice, as the IRS instructs.
Other notices
- Letter 12C: The IRS needs more information to process your returnYour return can't finish processing until you send a missing form or schedule or confirm income, withholding, credit or SSN details.
- CP75: Earned Income Credit audit with part of your refund heldThe IRS is auditing the Earned Income Credit on your return and holding the refundable-credit part of your refund until it finishes.
- Letter 5071C: Verify your identity and your returnA return was filed under your SSN or ITIN and the IRS wants you to confirm it was you before it continues processing.
- IRS notice lookupEvery IRS notice carries a code. Find yours below to see what it generally means, which date matters, and what to do before that date passes.
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