CP05 Notice + IRS Letter About Phantom Amended Return - $5,000 Frivolous Filing Penalty Waived for Return I Never Filed - No Refund Movement Since February
Just got a CP05 letter saying I need to wait 120 days for my refund while they verify my wages. Has anyone gotten this? My transcripts show no movement since February and I'm really getting worried about my refund. Starting to feel hopeless about this whole thing. Today I received another letter from the IRS dated May 03, 2024, in response to something I supposedly submitted on May 02, 2024. The letter states word for word: "Dear Taxpayer: Thank you for your response of May 02, 2024. We're sending your response, dated May 02, 2024, to the office at the address at the end of this letter because: Your amended return corrected your frivolous position; therefore, will not be assessed the $6,000.00 frivolous filing penalty. However, your amended return included other changes which require further examination. You will be contacted if additional information is needed to process your case. Find tax forms or publications by visiting IRS.gov/forms or calling 800-TAX-FORM (800-829-3676). If you have questions, you can call 866-883-0235. If you prefer, you can write to the address at the top of the first page of this letter. When you write, include a copy of this letter, and write your telephone number and the hours we can reach you. Keep a copy of this letter for your records. Thank you for your cooperation." I'm completely confused because I never filed an amended return or had any "frivolous position" that needed correcting. I just filed my regular taxes and was expecting my refund. Now I have both the CP05 saying to wait 120 days AND this new letter talking about amended returns and penalties that I don't understand. The letter mentions a $6,000.00 frivolous filing penalty that they're not assessing me, but I never filed anything frivolous! It also says my "amended return included other changes which require further examination" but I never submitted an amended return at all. Has anyone dealt with this combination of issues before? I'm completely lost and feeling even more hopeless about ever seeing my refund. My transcripts still show absolutely no movement since February. Should I call the number they provided (866-883-0235)? Or should I write to them as suggested in the letter? I'm worried if I contact them it might delay things further, but I also want to clear up whatever confusion is happening here.
15 comments
Oliver Becker
Tax professional here. CP05 notices are pretty common this year. The IRS is doing additional verification on returns with earned income credit, child tax credit, or significant changes in income. The 120 days is unfortunately just a baseline - some reviews take longer. Keep checking your transcripts weekly for updates.
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Amina Bah
Thanks for explaining! Do you know if calling them would help speed things up?
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Oliver Becker
Honestly calling rarely helps with CP05 reviews. They'll just tell you to keep waiting 🤷♂️
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Natasha Petrova
Hey guys - I've been seeing a lot of CP05 posts lately. I started using taxr.ai to track my transcript and it's been super helpful understanding exactly what's going on. It costs $4.99 but totally worth it for peace of mind. Check it out: https://taxr.ai
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Javier Hernandez
Is this legit? How does it work? 🤔
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Natasha Petrova
Yeah its totally legit! You upload your transcript and it uses AI to analyze everything - tells you exactly where you are in the process and when to expect movement. Way better than trying to decode it yourself
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Javier Hernandez
Just tried it - OMG this is amazing! Finally understand wtf is happening with my refund 💯
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Emma Davis
Been there done that... got my CP05 in March and STILL waiting. This is ridiculous fr fr 🤮
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LunarLegend
I'm in the exact same boat! My 120 days ended last week and nothing changed. Starting to think were never getting our money back lol
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Malik Jackson
frfr the IRS be playing games with our money 🤡
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Isabella Oliveira
i waited 6 months after getting cp05. finally got my refund last week. hang in there!
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Amina Bah
6 months?! Did you have to do anything special or it just randomly showed up?
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Isabella Oliveira
nope just showed up in my account one day. no updates or nothing beforehand
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Ravi Patel
Pro tip: upload your stuff to taxr.ai - saved me so much stress with my CP05. It actually predicted when my refund would hit within 2 days! Better than playing guessing games tbh
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Freya Andersen
for real? might have to check this out
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