Receiving a letter from the IRS can be intimidating, especially when it pertains to the status of your tax refund. One such notice is the CP05A letter, which signals that the IRS is conducting a more detailed review of your return before releasing any potential refund. If you’re a taxpayer — especially one with international income or cross-border activity — it’s crucial to understand what this letter means and how to respond properly.
What is IRS Letter CP05A?
Letter CP05A is issued when the IRS needs additional documentation to verify your reported income and the federal tax withheld on your return. This is not an accusation of fraud, but rather a standard review process. The IRS may be seeking confirmation of the dates you earned wages, total gross income received, or the amount of federal income tax withheld.
To support your claims, you should not send a W-2. Instead, provide:
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- At least three paystubs, including your year-end stub,
- A letter from your employer on company letterhead detailing your employment and earnings, or
- Benefit statements if you received retirement or disability income
You must respond by the deadline stated in the notice. You can reply electronically using the IRS’s Document Upload Tool (DUT), by fax using a secure service, or by mail to the address listed in the notice.
Relevance to Taxpayers
For U.S. and international taxpayers alike, the implications of a CP05A can be significant and can include:
Delayed Refunds: The IRS will not issue your refund until it completes its review. Expect to wait up to 60 days from the date you submit your documentation.
Audit Risk Awareness: This review may highlight potential red flags, such as discrepancies in third-party reported income, multiple filers using the same Social Security number, or inconsistencies with employer reporting.
Identity Theft Safeguards: If you did not file the return in question, the CP05A may be a signal that your identity has been compromised. In that case, you must immediately complete and submit IRS Form 14039 (Identity Theft Affidavit).
For cross-border taxpayers, particularly those with income from both U.S. and foreign sources, a CP05A may intersect with foreign information reporting obligations (e.g., Forms 2555, 1116, or 8938). Failing to align domestic and international reporting may trigger heightened scrutiny.
We Can Help!
Dealing with the IRS is complex enough, but navigating an audit or identity verification issue with cross-border implications requires specialized legal support. At Juárez Hernández Tax Law, we help clients:
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- Analyze and organize the necessary supporting documentation
- Communicate directly with the IRS and submit responses securely
- Evaluate potential audit risks or compliance concerns
- Take immediate action in cases involving suspected tax-related identity theft
If you’ve received a CP05A notice, do not delay. Our firm is experienced in both domestic and international tax controversies, and we can help ensure your rights are protected throughout the review process. Contact our office for a confidential consultation.