Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
hambantota32
Level 1

I got a letter from IRS that my 2020 return is being reviewed.and what does that mean.Is it an audit ? or anything else

Should I await a decision by IRS?
1 Best answer

Accepted Solutions
ToddL99
Employee Tax Expert

I got a letter from IRS that my 2020 return is being reviewed.and what does that mean.Is it an audit ? or anything else

The letter you received was an automated notice, and is not an audit - all you can do is wait for the IRS to complete its review. They may very well finish your return and send a refund without contacting you again. Or, they may write asking for additional information.. 

 

When the IRS officially places your return under review, you will receive a CP05 notice, and the processing of your refund will be delayed until the review is complete. According to the IRS website, a number of distinct factors can trigger the review, including the need to verify the following entries on your return:

  • Income is not overstated or understated. 

  • Tax withholding amounts are correct. 

  • You have the right to claim the tax credits on your return. 

  • Social Security benefits withholding amounts are correct. 

  • Household help is accurately reported. 

  • Schedule C income is not overstated or understated.

View solution in original post

1 Reply
ToddL99
Employee Tax Expert

I got a letter from IRS that my 2020 return is being reviewed.and what does that mean.Is it an audit ? or anything else

The letter you received was an automated notice, and is not an audit - all you can do is wait for the IRS to complete its review. They may very well finish your return and send a refund without contacting you again. Or, they may write asking for additional information.. 

 

When the IRS officially places your return under review, you will receive a CP05 notice, and the processing of your refund will be delayed until the review is complete. According to the IRS website, a number of distinct factors can trigger the review, including the need to verify the following entries on your return:

  • Income is not overstated or understated. 

  • Tax withholding amounts are correct. 

  • You have the right to claim the tax credits on your return. 

  • Social Security benefits withholding amounts are correct. 

  • Household help is accurately reported. 

  • Schedule C income is not overstated or understated.

View solution in original post

Dynamic AdsDynamic Ads
v
Privacy Settings