CP05B Notice: Delayed Refund Processing

The CP05B Notice is sent by the IRS to notify taxpayers that their refund has been delayed while the IRS conducts further review. This often happens when the IRS requires additional time to verify the information reported on the return, particularly around income, deductions, or credits that may raise red flags.

Details provided in a CP05B:

• Reason for Delay: The IRS typically includes the reason why the refund is being delayed. This could involve discrepancies in reported income, issues with the Social Security numbers provided, or the need to verify certain tax credits, such as the Earned Income Credit or the Additional Child Tax Credit.
• Next Steps for Taxpayers: The notice will outline whether taxpayers need to take any further action. In some cases, the IRS might request additional documentation, while in others, the IRS is conducting an internal review without requiring taxpayer involvement.
• Expected Timeline: The CP05B will often provide an estimate of how long the review might take. In some cases, it can take weeks or even months, depending on the complexity of the issue.

If you receive a CP05B, it’s important to monitor the status of your refund closely and respond to any requests from the IRS promptly to avoid further delays.