IRS has withheld your refund?
- Alejandro
- Apr 8
- 3 min read
If the IRS has withheld your refund or frozen the processing of your tax return, you must take certain steps to identify the cause and resolve the situation. Here I explain in detail how to proceed and who to contact.
Identify the Reason for Withholding
The IRS can withhold a refund for several reasons, among them:
Errors on the return (incorrect numbers, discrepancies with W-2 or 1099 forms).
Audit review (IRS wants to verify certain credits or income).
Outstanding tax debt (unfiled returns or taxes owed).
Debt owed to other agencies (student loans, child support, federal debts).
Suspicion of fraud or identity theft.
How to find out the reason for withholding
Check the status of your refund on the IRS website:
Where's My Refund?
Call 1-800-829-1954 (IRS automated refund line).
If the IRS needs more information, they will send you an official letter explaining the withholding and the steps to take.
Steps to Follow According to the Situation
A. If there is an error on the return
If you made an error in income or deductions, you may receive a CP11, CP12 or CP13 letter stating that the IRS adjusted the return.
If you need to correct the return, file an Amendment with Form 1040-X.
B. If your return is under review
The IRS may delay your refund if it reviews credits such as the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC).
There is no immediate action to take, but you can call the IRS if the review lasts more than 45 days.
C. If you have a tax debt
If the IRS withheld your refund to cover back taxes, you will receive a CP49 notice informing you of the application of the refund to the debt.
If you wish to dispute the debt, contact the IRS at 1-800-829-1040.
D. If the refund was taken for other debt (child support, loans, etc.)
The Treasury Offset Program (TOP) may take your refund to pay:
Overdue child support
Federal student loans in default
Federal or state debts
You will receive a CP54 or CP92 letter.
To dispute the withholding, contact the agency that claimed the debt at 1-800-304-3107 (Bureau of the Fiscal Service).
E. If there is suspicion of identity theft
If the IRS believes someone filed a fraudulent return in your name, you may receive a 4883C or 5071C letter, asking you to verify your identity.
Call the number on the letter or check online at IRS Identity Verification.
If your identity was stolen, file Form 14039 (Identity Theft Affidavit).
Who to Contact Depending on the Situation
Reason for withholding | Who to Contact | Number or Link |
Refund Status | IRS "Where's my refund?" | |
Error on the return | IRS Customer Service | 1-800-829-1040 |
Tax Review | IRS (based on letter received) | View letter |
Tax Debt | IRS Collections | 1-800-829-3903 |
Debt for child support, loans, etc. | Bureau of the Fiscal Service | 1-800-304-3107 |
Identity Theft | IRS Identity Theft Unit | 1-800-908-4490 |
Appeals and Entitlements | Office of the Taxpayer Advocate (TAS) | 1-877-777-4778 |
How long will it take to resolve?
Minor errors: May take 4 to 8 weeks.
Audit review: May take up to 60 days or more.
Fraud or identity theft: May take 120 days or more.
Refunds withheld for debts: Normally, the IRS applies the funds immediately and sends you a notice within 2-3 weeks.
If the wait is excessive (more than 6 months) or the IRS does not respond, you can contact the Taxpayer Advocate Service (TAS) at 1-877-777-4778, which is an independent agency within the IRS that helps taxpayers in cases of unjustified delays.
If you have had delays in receiving your refund, you must avoid this from happening again next year, that is why at Professional Taxes LLC, we will be willing to help you process your taxes right the first time, just provide us with the necessary information and support and we will do our best for you. Contact us!
PROFESSIONAL TAXES LLC.
480-3430299
3162 E Roeser Rd. Phoenix, AZ. 85040
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