Why Is My Refund Delayed? Common IRS Audit Flags and Processing Holds

PATH Act: EITC and ACTC refund timing

By law, the IRS cannot issue refunds before mid-February when a return claims the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). This hold applies to the entire refund, not only the part connected to those credits. The IRS’s refund tracker can provide a personalized status and date when one is available.

IRS: When to expect an EITC or ACTC refund

Income verification and return reviews

The IRS may need more time to verify income, withholding, credits, or business income reported on a return. A CP05 notice generally says the IRS needs time to review information; it does not necessarily ask you to send documents. A CP05A or CP05B may request supporting information. Read the notice you received and follow its specific instructions and deadlines.

A review or refund hold is sometimes described online as an “audit flag,” but the delay alone does not establish that you are being audited. The IRS says a return review does not mean that you made an error or were dishonest.

• IRS: Understanding your CP05 notice
• IRS: Understanding your CP05A notice
• IRS: Understanding your CP05B notice

Identity checks and return verification

If the IRS needs to confirm your identity or verify that you filed the return, it may send a letter such as CP5071 or 4883C. Use the verification method and contact details in your official IRS letter. If the letter directs you to verify online, go directly to IRS.gov and use its Verify Your Return service. A 4883C letter may ask you to call the number printed on the letter.

After you verify, the IRS says processing may take additional time. Keep the notice and requested records available, and check the IRS refund tracker for updates.

• IRS: Understanding a CP5071 series notice
• IRS: Understanding Letter 4883C
• IRS: Verify your return

What you can do while you wait

• Check Where’s My Refund? or your IRS Online Account for current status.
• Read any IRS notice and follow its response deadline; don’t assume every delay needs a response.
• Check that your bank account information is correct and allow time for your financial institution to post a payment.
• Use IRS.gov directly for updates. Do not send tax documents or Social Security numbers through D-XIRE’s waitlist or free-resource forms.

If your transcript includes a hold or refund entry, review IRS Code 570 and IRS Code 846 in context. For a future return, explore virtual tax preparation services and the preparation process.