Educational notice: This page explains, in general terms, what an IRS CP05 notice is and why someone might receive it. It is not tax or legal advice and is not affiliated with or endorsed by the IRS.

CP05 notice explained (What it means when the IRS says they’re reviewing your return and your refund is on hold)

CP05 notice explained: A CP05 notice generally means the IRS is reviewing your tax return and is holding your refund (if you were expecting one) while they verify information. In plain English: “We’re taking another look before we release the refund.”

This page explains what CP05 usually means, why it happens, what to check on the notice, how it’s different from CP2000, whether it means an audit, and what the “ignore it” risk looks like. Everything here is educational and general.

What Is a CP05 Notice (Plain English)?

CP05 is commonly a notice that the IRS is doing a review of your return. The big thing most people notice is that their refund is delayed. CP05 often comes with language like “we need more time” or “we are verifying information.”

This is not the same as the IRS saying you did something wrong. It’s the IRS saying they are verifying something before finalizing the return.

Takeaway: CP05 usually means “refund delayed while the IRS verifies details.”

Why Did I Get a CP05 Notice?

CP05 is often triggered when the IRS wants to confirm something on the return matches what they see in their system. This can be about income, withholding, or certain credits.

Common (general) reasons include:

  • Income verification (the IRS is checking reported income against what was filed on the return)
  • Withholding verification (making sure withholding amounts line up with what was reported)
  • Credit verification (making sure eligibility or amounts for certain credits are supported)
  • Identity/protection checks (extra review to help prevent fraud in some cases)
  • Random review (yes, sometimes it’s just a review selection)

If the IRS eventually decides the return needs a change, you might later see a notice that looks more like “we changed something,” such as CP12 notice explained.

Takeaway: CP05 is usually about verification—matching what you filed to what the IRS can confirm.

Does CP05 Mean an Audit?

Most people hear “review” and immediately think “audit.” Usually, CP05 is not written like a classic audit notice. It’s typically an IRS processing/review step.

Here’s a plain-language explanation of how IRS letters relate to audits: Does an IRS letter mean an audit?

Takeaway: CP05 is often a review/verification notice, not a formal audit notice.

CP05 vs CP2000 (They Sound Similar, But They’re Different)

CP05 is usually: “We’re reviewing/verifying, please wait.” CP2000 is commonly: “We think there’s a mismatch and we’re proposing changes.”

  • CP2000 notice explained is typically about a proposed adjustment (often a mismatch between what you reported and what the IRS received from payers).
  • CP05 is typically about the IRS taking extra time to verify information before finalizing the return.

If you’re trying to quickly identify what kind of letter you have, this page helps: What does this IRS letter mean?

Takeaway: CP05 is usually “pause while we verify,” while CP2000 is “we propose changes.”

What to Check on the CP05 Notice

CP05 is one of those notices where the “details” matter. Look for:

  • Tax year the notice is about
  • Whether the IRS is asking for anything (some CP05 notices are “wait,” others may request information)
  • Any timeframe mentioned (example: “allow X days”)
  • Any specific items the IRS says they are reviewing (income, withholding, credits, etc.)

Sometimes people confuse CP05 with balance-due letters because they’re stressed and scanning. If your letter is about an amount due, start with IRS balance due letters explained or CP14 notice explained.

Takeaway: CP05 is usually a “processing hold” notice—confirm if it’s asking you to do anything or just wait.

What Happens If You Ignore a CP05 Notice?

If CP05 is purely informational and asks you to wait, there may be nothing to “respond” to right away. But ignoring it can still be risky if the notice requests information or if follow-up letters come later.

This page explains the general “ignore it” risk across IRS letters: What happens if you ignore an IRS letter?

Takeaway: Don’t ignore CP05 blindly—confirm whether it’s “wait” or “we need something from you.”

Could CP05 Lead to Collections Like Levies or Liens?

CP05 itself is not a levy notice and not a lien notice. It’s typically about reviewing a return/refund. Collections topics generally come up when there’s a balance due that remains unpaid for a long time.

If you’re worried about the scary words, start with these simple definitions: What is an IRS levy? and What is an IRS lien?.

Takeaway: CP05 is usually refund-processing related—not a collections action.

Real-World Example (How CP05 Feels)

Example: You file and expect a refund. You check “Where’s My Refund?” and it doesn’t move the way you expected. Then you receive a CP05 notice that says the IRS is reviewing your return and needs more time.

In many cases, the refund is simply delayed. In some cases, the IRS later requests documents or issues a change notice. That’s why reading CP05 carefully matters.

Takeaway: CP05 is often the “refund delayed while we verify” letter.

Helpful Related Pages

Frequently Asked Questions

What is a CP05 notice from the IRS?

A CP05 notice generally means the IRS is reviewing your return and needs more time to verify information. If you were expecting a refund, it may be delayed during the review.

How long does a CP05 review take?

CP05 notices often include a general timeframe (like “allow X days”), but real processing times can vary. The key is whether the notice requests something from you or simply tells you to wait.

Does CP05 mean I’m being audited?

Usually no. CP05 is typically a review/verification notice, not a traditional audit letter. See: Does an IRS letter mean an audit?

What should I do when I get a CP05 notice?

First, read the notice for the tax year and any action steps. If it requests information, follow the instructions carefully. If it says to wait, keep the notice for your records and watch for follow-ups. If you’re unsure what you’re looking at, start here: What does this IRS letter mean?

Is CP05 related to balance due notices like CP501 or CP504?

CP05 is typically about a return/refund review. Balance-due notices are about amounts owed. If your letter is about owing money, start with: IRS balance due letters explained.

This page is for general educational purposes only and does not provide tax or legal advice. WhatThisIRSLetterMeans.com is not affiliated with the IRS or any government agency.