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IRS has withheld your refund?

  • Writer: Alejandro
    Alejandro
  • Apr 8
  • 3 min read
IRS has withheld your refund?

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.


  1. 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.


  1. 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).


  1. 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


  1. 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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