CP06 Notice Explained: What It Means and What To Do Next

What is an IRS CP06 notice?

A CP06 (and sometimes a CP06A) is an IRS notice that says your tax return is being reviewed and the IRS needs supporting documents to verify the Premium Tax Credit you claimed. The IRS may hold your refund (or part of it) while they do this review. The IRS describes CP06/CP06A as a notice requesting documentation to verify the Premium Tax Credit.

This is not the same as a “balance due” bill like a CP14. A CP06 is usually about proof—not a demand for immediate payment. Takeaway: CP06 means “send proof,” not “pay today.”

Reference: IRS guidance on CP06/CP06A explains that the IRS is auditing your return to verify Premium Tax Credit (PTC) and may hold your refund during the audit. (See: IRS “Understanding your CP06/CP06A notice.”) :contentReference[oaicite:0]{index=0}

Why did I get a CP06 notice?

Most of the time, a CP06 happens when the IRS sees something that doesn’t match up around your health insurance Marketplace information and the Premium Tax Credit on your return.

Common reasons CP06 gets triggered

• You claimed the Premium Tax Credit but the IRS needs to confirm your Marketplace details (often tied to Form 1095-A).
• Your Form 8962 (Premium Tax Credit) doesn’t match the Marketplace information the IRS expects.
• The IRS needs more details because your policy covered multiple people or households (shared policy situations can get messy).
• The IRS believes the credit claimed may be incorrect and wants documentation before finalizing your refund.

The IRS and the Taxpayer Advocate Service both describe CP06 series notices as requests for documentation to verify the Premium Tax Credit, with refunds often held until resolved. :contentReference[oaicite:1]{index=1} Takeaway: CP06 usually points to a Premium Tax Credit verification issue—not identity verification.

Does CP06 mean I’m “in trouble” or going to jail?

No. A CP06 is typically part of a standard IRS process to verify a credit. It can feel scary because it uses words like “audit” or “examination,” but many CP06 cases are resolved by sending the correct forms and proof.

That said, ignoring it can lead to the IRS adjusting your return and reducing or removing the credit, which can create a bill later. Takeaway: CP06 is fixable, but only if you respond.

Will my refund be delayed?

Often, yes. The IRS states that if you received CP06, they may be holding all or part of your refund until the audit is completed. :contentReference[oaicite:2]{index=2}

How long will it take?

There is no single “magic number” of days. It depends on how quickly you respond and how quickly the IRS processes what you send. Your notice will usually show a deadline and an address (or upload instructions).

Takeaway: The fastest path is usually: respond quickly + send clean, complete documentation the first time.

What should I do first when I get CP06?

1. Read the notice top-to-bottom. Look for the response deadline and what documents they’re asking for.
2. Find the tax year on the notice (example: 2023 return, 2024 return). Don’t send documents for the wrong year.
3. Match the notice to your tax return. Pull your filed return (Form 1040) and the forms related to the Premium Tax Credit.
4. Start a simple folder (paper or digital): CP06 notice, your return, Marketplace forms, and everything you send back.

Takeaway: Treat CP06 like a paperwork project. Organized = faster resolution.

What documents does the IRS usually want for CP06?

The IRS is trying to verify your Premium Tax Credit (PTC). The documents commonly tied to PTC verification include:

Most common “core” documents

• Form 1095-A (Health Insurance Marketplace Statement) — typically the key document.
• Form 8962 (Premium Tax Credit) — shows how the credit was calculated and reconciled.
• Any Marketplace letters showing enrollment, policy changes, or monthly premium amounts.

If your situation is more complicated

• Proof of who was covered and for what months (especially if people joined or left during the year).
• Shared policy details (if multiple households were on the same Marketplace plan).
• Any corrected Marketplace forms (like a corrected 1095-A).

Internal IRS guidance describes CP06 as a request for supporting documentation related to Premium Tax Credit verification (and notes that a verification form may be included). :contentReference[oaicite:3]{index=3} Takeaway: If you claimed PTC, expect to prove the Marketplace numbers behind it.

How do I respond to a CP06 notice?

Your CP06 notice will tell you how to respond. In general, the right approach looks like this:

Step-by-step response checklist

1. Make copies of everything you send. Don’t mail your only originals unless the notice specifically tells you to.
2. Include the notice stub (or copy of the first page) so the IRS can match your documents to your case.
3. Send exactly what they asked for, plus any supporting pages that make it obvious.
4. Write a short cover note (simple and direct): “Enclosed are the documents requested for CP06 for tax year ____.”
5. Use tracking if you mail it (certified mail/return receipt is common for peace of mind).

Can I upload documents instead of mailing?

Sometimes the IRS provides a secure Document Upload Tool link and access code for correspondence, but it depends on the notice and case type. The IRS has expanded secure digital correspondence in certain situations, but you should only use the upload method if your notice gives you the official instructions and code. :contentReference[oaicite:4]{index=4}

Takeaway: Follow your notice. If it says “mail,” mail. If it gives an upload option, use the IRS-provided link and code.

What NOT to do (common mistakes that slow everything down)

• Don’t ignore it. Non-response can lead to changes on your return and a possible bill later.
• Don’t send random paperwork. Sending unrelated documents creates confusion and delays.
• Don’t miss the deadline. If you need more time, call the number on the notice and document who you spoke with.
• Don’t assume it’s identity verification. CP06 is typically about Premium Tax Credit verification, not ID verification.

Takeaway: Clear, complete, and on-time beats “panic sending.”

If I claimed the Premium Tax Credit, does that automatically trigger CP06?

No—many people claim the Premium Tax Credit without receiving a CP06. CP06 typically shows up when the IRS needs additional verification for the credit claimed. The IRS lists CP06 among notices that may be sent when the IRS is auditing a return and needs information to verify a claimed credit. :contentReference[oaicite:5]{index=5}

Takeaway: PTC doesn’t automatically mean CP06—but PTC is the most common reason CP06 exists.

How this fits into the “bigger IRS letter picture”

CP06 is one of many IRS letters that can show up. Some are about refunds being held, some are about balance due, and some are about collections. If you’re trying to understand the “level of seriousness” of what you got, it helps to compare categories:

• Refund hold / verification: CP06, CP05 (verification-related notices)
• Balance due (you owe): CP14, CP501, CP503, CP504
• Collections escalation: Final Notice of Intent to Levy, lien notices, CDP hearing rights

If you’re not sure which category your letter is in, start here: What does this IRS letter mean? Takeaway: CP06 is usually “prove the credit,” not “collections action.”

Helpful internal links (based on what people usually ask next)

• If your letter is about a mismatch on income documents (not Marketplace credit), this page helps: CP2000 Notice Explained.
• If your concern is whether a letter means you’re being audited in general, this covers the reality: Does an IRS letter mean an audit?
• If you’ve moved from “notices” into “collections warning territory,” this is the next-level concept to understand: Final Notice of Intent to Levy explained.

Takeaway: Knowing the “type” of letter changes what you should do next.

FAQ

1) Is a CP06 notice the same thing as an audit?

CP06 is part of an IRS examination (audit) process focused on verifying the Premium Tax Credit. The IRS states they are auditing your return and need documentation to verify the credit. :contentReference[oaicite:6]{index=6}

Simple truth: It’s an audit, but usually a targeted, paperwork-based one.

2) Does CP06 mean my refund is frozen?

Often, yes—at least temporarily. The IRS states that if you received CP06, they may be holding all or part of your refund until the audit is completed. :contentReference[oaicite:7]{index=7}

What helps most: Send complete documentation quickly and keep copies of everything.

3) What if I don’t respond to CP06?

If you don’t respond, the IRS may make changes based on what they have (or don’t have). That can mean reducing or disallowing the credit and potentially creating a bill. You don’t want that surprise later.

Takeaway: Silence usually doesn’t “make it go away.” It usually makes it worse.

4) Is CP06 identity verification?

Typically, no. Identity verification notices are usually in other notice series (for example, CP5071). The IRS identity verification tool is tied to those notices, not CP06. :contentReference[oaicite:8]{index=8}

Takeaway: CP06 is usually about verifying the Premium Tax Credit, not proving who you are.

5) Should I call the IRS after I send my documents?

You can, but it’s often smart to wait a bit after delivery so the IRS has time to log your response. If you do call, have your notice, your return, and the list of documents you sent in front of you.

Takeaway: Calling without the details doesn’t help. Calling with your file organized can.