CP05 and CP05A Notices: IRS Is Reviewing Your Return

A CP05 or CP05A arrives when the IRS pulls your return aside before sending a refund. The delay is frustrating, but the two notices ask for very different things. A CP05 asks you to wait. A CP05A asks you to send documents. Knowing which one you have saves weeks.

Why the IRS reviews returns

The IRS says it reviews some returns to confirm that income, expenses and credits are reported accurately. Selection does not mean you made an error or were dishonest. The review often compares what you reported with employer and payer reports, and it can happen even if everything on the return is correct. Tracking your refund through the IRS refund tools shows whether it has been released.

CP05: wait, do not call yet

With a CP05, the IRS needs more time to check your income, income tax withholding, tax credits or business income. If you filed the return, the IRS says no action is needed. Do not call until 60 days after the notice date, and call only if you still have not received your refund or heard from the IRS. The IRS asks you to hold off until then.

CP05A: send documents

A CP05A tells you the IRS needs more supporting documentation to verify your income and federal tax withholding before it can issue your refund. Reply by the date on the notice. The IRS asks for documentation showing:

• The date you earned the wages.
• The gross income you received.
• The federal tax withheld for the year on the notice.

Acceptable documents include at least three pay statements or check stubs, including the year-end statement, or a letter on company letterhead from your employer with the employer's name, address and phone and fax numbers. A statement of retirement benefit income is also accepted. The IRS says not to send a Form W-2 in response.

How to reply

1. Document upload tool. The IRS calls this the fastest option. You can upload your documents and a copy of the notice, or scan the QR code on the notice with your phone.
2. Fax. Use the fax number on the notice. If you use an online fax service, review its privacy and security policies first.
3. Mail. Use the address on the notice.

Every reply must include a copy of the notice. After you send the documents, allow 60 days for the IRS to complete its review before contacting it.

If you did not file the return

If you did not file a return for the year on the notice, someone may have used your name and Social Security number or ITIN. Complete Form 14039, Identity Theft Affidavit, on paper, sign it, and mail it to the address on the notice. Consider requesting an Identity Protection PIN to protect future filings. See identity theft and the IRS. If instead the IRS asks you to verify your identity, see Letter 5071C.

Interest and penalties

These notices do not assert a balance. They hold a refund. If the review leads to a change in tax, the IRS will send a separate notice, such as a CP11 or a CP2000.

Common mistakes

• Calling in week two, before the 60 days the IRS asks you to allow.
• Sending a Form W-2 when the CP05A asks for pay statements or an employer letter.
• Forgetting the copy of the notice, or not keeping proof of what you uploaded.
• Filing a second return because the first seems stuck.

When to involve a CPA

Consider professional help if the refund is large, if your income came from several sources, if you worked in more than one state, or if you suspect identity theft. We can gather the right documents, pull your tax transcripts to see what the IRS has, and, with a signed Form 2848, follow up with the IRS for you. If you cannot resolve the delay and are suffering hardship, the Taxpayer Advocate Service may help.

How we can help

We can tell you whether you hold a CP05 or CP05A, assemble the documents the notice requests, and follow up after the 60-day mark. See our IRS representation services or contact us.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.