What the notice means
The CP05 page says: “We need more time to verify your income, income tax withholding, tax credits and/or business income. Please allow up to 60 days before reaching out.” It tells a taxpayer who filed the return that no action is needed, and a taxpayer who did not file to send Form 14039. It also answers the obvious question: “We select some returns to review so we can determine whether income, expenses, and credits are reported correctly. This doesn’t mean you made an error or were dishonest.”
The CP05A is different. Its page says “We need more supporting documentation to verify your income and federal tax withholding before we can issue your refund,” and it has a response date. IRM 21.5.6.4.35.3.1.5 puts the consequence plainly: “The CP 05A instructs the taxpayer to respond to RIVO with documentation for the return they filed or RIVO may disallow all or part of the refund.”
Neither notice is an examination. No Form 4549 or 30-day letter is involved, there is nothing to agree to and no appeal right attaches. The return is in the Return Integrity Verification Operations (RIVO) pre-refund verification process, which the IRM describes in the -R freeze procedures of IRM 21.5.6.
Why the client got it
IRM 21.5.6.4.35.3: “The Return Integrity Verification Operations (RIVO) identifies and intercepts refunds from returns with questionable wage and/or withholding claims, which may include identity theft related issues.” The selection is a filter result, usually a mismatch or a timing gap between the wages and withholding on the return and the Forms W-2 and 1099 the IRS has loaded. Early-season returns with large withholding, returns with household employee wages, returns with withholding claimed on Form 1099 income, and returns from employers whose W-2 data has not posted are common selections.
On the transcript the hold shows as a -R freeze with a TC 971 AC 134 (and often a TC 971 AC 199), or a P- freeze when a refund was issued and returned. The notice posts as a TC 971 AC 804 and AC 044 with the notice number in the MISC field. IRM 21.5.6.4.35.3.1.3 adds a detail that explains why some clients never see a CP05: “On certain accounts, the CP 05 is being suppressed by RIVO (indicated by a TC 971 AC 617)” and the Letter 4464C is issued instead. The 4464C is the letter version of the same hold. See reading an account transcript and the transcript code decoder.
A CP05 is not a Letter 5071C or 4883C. Those come from the Taxpayer Protection Program and require identity verification before the return is processed at all. A CP05 return has posted; only the refund is frozen.
Deadlines and what happens if they pass
| Notice or marker | Timeframe the IRM gives | Then |
|---|---|---|
| CP05 or Letter 4464C | 60 days from issuance for a new notice or the refund; the whole review can take up to 180 days | IRM 21.5.6.4.35.3.1.3 |
| TC 971 AC 199 posted after the notice | 120 days from the posting date | Form 4442 referral to RIVO if still unresolved |
| Letter 2645C or 2644C (interim letters) | 60 more days from each letter | IRM 21.5.6.4.35.3.1.4 |
| CP05A | Reply by the date on the notice; allow 60 days after sending documents | Referral if unresolved after 60 days with no RIVO control |
| 120 days from the CP05 with no RIVO action | Assistor prepares Form 4442 to RIVO | RIVO to contact the taxpayer within 60 days |
IRM 21.5.6.4.35.3.1.3 tells assistors to say “that the entire review process can take up to 180 days from the posting of the CP 05 or latest Letter 4464C,” and that the taxpayer “should receive periodic notices throughout the process.” The interim letters are described in IRM 21.5.6.4.35.3.1.4: the Letter 2645C “advises the taxpayer that RIVO needs an additional 60 days, from the date of the letter, to review the return,” and a Letter 2644C does the same if the first 60 days pass. These are the only clocks. There is no statutory deadline on the IRS, and the notice carries no deadline for the taxpayer unless it is a CP05A.
The money clock runs in the client's favor: refund interest under IRC 6611 accrues on an overpayment that is not refunded within 45 days of the later of the due date or the filing date, so a long hold on a correct return produces interest when it is finally released.
How to respond
- For a CP05, compare the return to every W-2, 1099 and withholding statement. IRM 21.5.6.4.35.3.1.3 has assistors recommend that the taxpayer “review their return and each income information statement, e.g., Form W-2, to ensure all income and withholding matches,” and file an amended return if there is an error. Pull the wage and income transcript to see what the IRS has.
- If the return is correct, wait the 60 days. Calling earlier changes nothing; the IRM scripts say “No action is required” until the timeframe passes.
- For a CP05A, send what the notice asks for by the response date, through the Document Upload Tool if possible. The CP05A page lists acceptable documentation: “Copies of at least 3 pay statements or check stubs, including the end of the year statement/check stub,” a letter on employer letterhead with the employer's name, address, telephone and fax number, or a statement of benefits for retirement income. The page says not to send a copy of Form W-2, and that every reply must include a copy of the notice.
- If the Document Upload Tool is not an option, IRM 21.5.6.4.35.3.1.5 gives the fax (855-851-8440) and the mailing address (Internal Revenue Service, 3211 S Northpointe Dr, STOP M2004, Fresno, CA 93725-1959), and says the TIN and tax period must be on each page.
- If the client did not file the return, follow the identity theft route: Form 14039 to the address on the notice. The CP05 page says to complete it on paper “for faster service.”
- After 120 days with no new notice, call PPS and ask for a Form 4442 referral to RIVO under “RIVO - Unresolved Module Freeze Only”; the IRM says RIVO should contact the taxpayer within 60 days. If the client is in economic hardship, the Taxpayer Advocate Service can take the case; see TAS and Form 911.
IRM 21.5.6.4.35.3.1 tells Accounts Management: “If Return Integrity Verification Operations (RIVO) generated the -R freeze condition, and there is no -A freeze on the account, DO NOT release the -R freeze set by RIVO.” A phone assistor cannot release the refund; only RIVO can. The call is useful for timeframes and referrals, not for resolution.
What the IRS does next
RIVO compares the return to payer data as it loads and to any documents received. IRM 21.5.6.4.35.3 states the release rule: “If the return is verified at any point in the RIVO process, the refund is released.” Release shows as a pending TC 290 for .00, a TC 571 or a TC 972 AC 134, after which the IRM says to allow four to six weeks for the refund. A return selected as “Can’t Verify” releases when the income verifies on IRPTR.
Written replies are worked under IRM 25.25.5.2.1.3. A Form W-2 that verifies to IRPTR data, or other documents such as pay stubs or employer letters that are “verifiable per RIVO tolerances, through research (CC IRPTR) or contact with the employer,” lead to release. Information that cannot be verified leaves the return in the verification queue until payer data is fully loaded. A taxpayer who reports an error in wages or withholding without filing an amended return gets a Letter 89C asking for one. If the IRS concludes the wages or withholding are not supportable, the result is an adjustment with a disallowance letter and, for a credit, possibly a referral to the questionable credit or examination programs, which carry their own appeal rights.
Related notices
- Letter 5071C and Letter 4883C: identity verification before the return is processed.
- CP75: a refundable credit audit with a refund hold, which is an examination.
- CP12: a math error change to the refund.
- CP2057: a soft notice when income appears to be missing.
Questions practitioners ask
Is a CP05 an audit?
No. It is a pre-refund verification hold by RIVO. No examination report issues and no appeal rights attach. A CP75 or Letter 566 is an audit.
What can a representative do during the first 60 days?
Verify the return against the wage and income transcript, confirm every payer filed its W-2 or 1099, and, if the client made an error, file Form 1040-X. The IRM scripts give assistors no action to take until 60 days have passed.
The client got a CP05, then a Letter 2645C. Is that normal?
Yes. The 2645C is an interim letter saying RIVO needs another 60 days. A 2644C can follow. The IRM frames the whole process as up to 180 days from the CP05 or latest 4464C.
Should we send pay stubs in response to a plain CP05?
The CP05 asks for nothing and the IRS page says no action is needed. The CP05A is the request for documentation. Unsolicited documents are worked under IRM 25.25.5.2.1.3 if they arrive, but the IRS does not ask for them on a CP05.
When does TAS take a refund hold case?
When the client meets TAS criteria, typically economic hardship or a significant delay past the IRS timeframes. The CP05A page itself lists TAS as a contact for hardship.
Does the hold affect the refund statute or interest?
No on the statute; the return was filed on time. Overpayment interest under IRC 6611 accrues if the refund is not paid within 45 days of the later of the due date or filing date.