Notice Type
A CP05 notice means the IRS is holding your refund while it reviews your return, typically to verify income, withholding, or credits claimed before releasing anything. It doesn't mean you did anything wrong, and it doesn't request a payment — it simply means processing is paused during the review, and this type of notice often fits within our standard $45 notice review as a starting point, since it usually begins with understanding what's being reviewed and what to expect next.
Before You Respond
A CP05 doesn't require a response in most cases, but it's still worth understanding, since it can be the first sign that additional information will be requested later. Check your actual notice for any timeframe mentioned — the IRS generally states an estimated review period, and that timeframe is what determines when you might hear back, not a general rule of thumb. If the review turns up something that needs clarification, the IRS will follow up with a more specific request, such as a CP05A; if nothing further is needed, the refund is typically released once the review is complete. Knowing what to expect keeps you from being caught off guard by a follow-up notice.
Know Before You Act
Before assuming the review will resolve on its own or that nothing further is needed, it helps to understand what may have triggered the hold in the first place, such as an item on the return that didn't match IRS records. The IRS may simply be verifying things as a routine check. But there can also be a mismatched form, an income item that needs a source document, or a credit that requires more support. Knowing which of these is likely behind the hold helps you be ready if the IRS follows up asking for documentation.
Start with a secure notice upload and a free IRS notice summary. If you want organized next steps, optional $45 Review & Guidance is a one-time purchase with no subscription. It may include an Action Plan, records to gather, response options, and case questions. When the information and supporting documents provided support a written IRS response, you can use the action steps provided to prepare it yourself or unlock the option for Think Twice Tax to draft a personalized response letter for you.