What to do when your Tax return Is Under Review by IRS

What to do when your Tax return Is Under Review by IRS.

What to do when your Tax return Is Under Review: Filing taxes can be stressful. When the IRS opts to take a closer look at your tax return, that can only increase your anxiety level. Getting your return flagged for review doesn’t mean you’ll be audited, but it can raise the odds that the numbers don’t add up. It helps to understand why returns are flagged and what reviews involve.

What to do when your Tax return Is Under Review by IRS

Why your Tax return Is Under Review

When the IRS officially places your return under review, you will receive a CP05 notice, and the processing of your refund will be delayed until the review is complete. This notice lets you know that your return is being reviewed to verify any or all of the following:

  • Income is not overstated or understated.
  • Tax withholding amounts are correct.
  • You have the right to claim the tax credits on your return.
  • Social Security benefits withholding amounts are correct.
  • Household help is accurately reported.
  • Schedule C income is not overstated or understated.

What Next?

At this point, you’re not expected to do anything. The IRS will attempt to verify whatever information triggered the review. In the meantime, you won’t be issued a refund if you’re expecting one. If you owe taxes, you will still need to pay by the tax filing deadline to avoid a penalty.

How long the review process takes depends on what information the IRS needs to verify. If you don’t hear anything within 45 days from the date of the initial notice, however, you can follow up to see what happened to your refund.

What to do If there is a Delay

The IRS recommends you take the following steps if you have additional questions or concerns:

  • Consult with your tax preparer to gain a better understanding of the notice.
  • Call the toll-free number listed at the top of the notice to receive additional information.
  • Call the Taxpayer Advocate Service (TAS) hotline at 1-877-777-4778 if you believe your return has been selected in error due to the inadequate screening of IRS systems.
  • Authorize a professional tax preparer or accountant to communicate with the IRS on your behalf by submitting Form 2848 (Power of Attorney and Declaration of Representative).



If your return is flagged for review, remain calm. Cooperate with the IRS (if they request additional documentation) to ensure your return is processed in the most seamless and rapid manner possible.

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