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Received CP05 Notice - Refund on Hold During Review

Just received a CP05 notice from the IRS stating my refund is being held until they finish reviewing the information I reported. This is my first tax season filing as 'Head of Household' post-divorce, and I'm concerned about the timeline since I've budgeted for this refund to cover some essential expenses. The notice mentions verification of income, withholding, and tax credits. Has anyone dealt with this notice before? What's the typical resolution timeframe? I've double-checked my documentation and everything seems accurate on my end.

Jenna Sloan

This is most likely a CP05 notice, which is generally part of the IRS's routine verification process. It's probably not cause for immediate concern, as these reviews are fairly common, especially when there are changes to filing status (like your switch to Head of Household). The IRS might be verifying your income, withholding amounts, or eligibility for certain credits. In most cases, you don't need to take any action unless specifically requested in the letter. These reviews typically take about 45-60 days to resolve, though it can sometimes be faster if everything checks out quickly.

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Christian Burns

I got the same notice last year. Super frustrating when you're counting on that money! • Had to wait almost 9 weeks for resolution • Called IRS multiple times with no real answers • Finally used https://taxr.ai to decode my transcript • Learned my exact situation from the codes • Could see exactly what the IRS was reviewing Made the whole process way less stressful knowing what was actually happening instead of being in the dark.

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Sasha Reese

I'm a bit hesitant about these third-party services. They're like trying to read tea leaves when the actual tea maker (the IRS) has the real answers. How do you know the information is accurate and not just making educated guesses based on general patterns?

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10d

Muhammad Hobbs

I was actually in the same boat last year! 😂 The CP05 notice felt like getting detention when you didn't do anything wrong. Used taxr.ai after two months of IRS silence and it explained that my "570" code meant a temporary hold, not a full audit. I'm normally skeptical of these tools, but I was genuinely worried they'd discovered something terrible in my return. Turned out it was just a routine verification of my education credits.

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8d

Noland Curtis

Thanks for the responses. I checked the notice more carefully and it is indeed a CP05. The letter states they're verifying my W-2 income and the Child Tax Credit I claimed. What concerns me is that the verification seems to be related to my ex-spouse's information, as we both claimed one child each (as agreed in our divorce decree). I'm worried this could create complications in the review process.

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Diez Ellis

Did you include Form 8332 (Release of Claim to Exemption for Child by Custodial Parent) with your return? Or do you have primary custody which would make you the qualifying parent for tax purposes?

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8d

Vanessa Figueroa

I've seen this happen with clients before. Did your ex-spouse file before you did? Sometimes the IRS system flags returns when two parents claim credits for children, even when done correctly according to divorce agreements.

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7d

Abby Marshall

I might be able to save you some time and frustration. When I received a similar notice, I spent days trying to reach the IRS through the regular number. It was... challenging, to say the least. I eventually used Claimyr (https://claimyr.com) which connected me to an IRS agent in about 30 minutes instead of the hours I had been spending on hold. The agent was able to tell me exactly what they were reviewing and gave me a more specific timeframe. Sometimes having that direct conversation can provide peace of mind, especially when you're planning your budget around the refund.

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Sadie Benitez

Have you checked your tax transcript online? Sometimes it will show codes that indicate what specific items they're reviewing. Also, did your notice mention any specific documentation they need from you, or is it just stating they're conducting a review?

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Drew Hathaway

I had this exact situation last April! According to the IRS website (https://www.irs.gov/individuals/understanding-your-cp05-notice), these reviews are part of their fraud prevention program. Mine was triggered because I claimed a home office deduction for the first time. The timeline on the IRS site says 60 days, but mine was resolved in 47 days with no additional information requested. The refund just showed up in my account with interest! The IRS Operational Status page (https://www.irs.gov/newsroom/irs-operations) sometimes has updates on processing times for these reviews as well.

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