If you received IRS Notice CP05, the IRS is reviewing information reported on your tax return before it can finish processing your return or issue your refund. Receiving a CP05 notice does not automatically mean you made a mistake or did anything wrong. The IRS may need additional time to verify information reported on your return.
What is IRS Notice CP05?
Notice CP05 is a letter from the IRS that tells you your tax return is being reviewed.
The IRS may be verifying information such as:
- Income reported on your return
- Federal income tax withholding reported by employers or payers
- Tax credits claimed on your return
- Business income reported on your return
The review helps the IRS confirm that the information reported on your tax return matches information it received from employers, financial institutions, and other reporting sources.
Why did I receive a CP05 notice?
The IRS reviews some tax returns to verify that income, expenses, withholding, and credits were reported correctly.
Receiving a CP05 notice does not mean:
- You made an error.
- You are being accused of fraud.
- Your return is being audited.
In many cases, the IRS is simply verifying information before completing the processing of the return.
Example
Melissa claimed federal withholding from her Form W-2 and reported income from multiple employers. Before issuing her refund, the IRS reviewed the income and withholding information to ensure it matched information reported by her employers.
What should I do if I filed the return?
If you filed the tax return referenced in the notice, the IRS generally does not require any immediate action from you.
The IRS requests that taxpayers:
- Wait for the review to be completed.
- Allow up to 60 days from the date of the notice.
- Avoid contacting the IRS during that period unless instructed otherwise.
If 60 days have passed since the notice date and you have not received your refund or additional correspondence, contact the IRS using the information provided on your notice.
What if I did not file the return?
If you did not file the tax return referenced in the CP05 notice, someone may have used your identity to file a fraudulent tax return.
You should:
- Complete IRS Form 14039, Identity Theft Affidavit.
- Sign the form.
- Mail it to the address shown on your CP05 notice.
What is Form 14039?
Form 14039 is used to notify the IRS that you may be a victim of tax-related identity theft.
You can usually determine whether you need this form if:
- You received an IRS notice for a return you did not file.
- You believe someone used your Social Security number to file a tax return.
The IRS recommends submitting Form 14039 as soon as possible if you believe identity theft has occurred.
How can I check my refund status?
While the IRS reviews your return, you can monitor the status of your refund through:
- "Where's My Refund?" on the IRS website
- The IRS mobile app
These tools can provide updates on your refund processing status.
What should I do next?
- Read the CP05 notice carefully.
- Keep the notice with your tax records.
- Wait for the IRS review process to be completed.
- Monitor your refund status through IRS refund tracking tools.
- If you did not file the return referenced in the notice, complete Form 14039 and report potential identity theft.
- Contact the IRS only if the requested review period has passed and you have not received additional information or your refund.