Letter CP05

That can be really frustrating but the IRS must have found a mismatch or dependent issues with your 2020 return.  How long the review process takes depends on what information the IRS needs to verify. If you don't hear anything within 45 days from the date of the initial notice, however, you can follow up to see what happened to your refund. 

You also can request an online transcript of your return through IRS.gov.  You should see information or coding that might help determine why a hold has been put on your account. Click here to get an online transcript.  Here are a few other items:

Did you have unemployment benefits. So to not have to process thousands of amended returns, if you had unemployment benefits the IRS could be holding your return for processing once their systems are updated for the American Rescue Plan Act that excludes the first $10,200 of unemployment benefits if your adjusted gross income is less than $150,000.   

If you have earned income credit and/or additional child tax credit, it is probably delayed. Returns with either of these credits are covered under the PATH act, which gives the IRS authority to delay the refund to verify dependent information on your return. For 2020, the IRS was not issuing refunds for these returns until the 1st week of March. 

Do you have any refund offsets such as back taxes, student loans, child support, state obligations (Court costs), etc. This could delay your refund and you will receive a letter indicating the change.

If you answered the stimulus questions incorrectly, this will delay your refund. If you claimed the Recovery Rebate credit on your return, the IRS is matching stimulus payments to returns with the Recovery Rebate credit. If there is a mismatch, you will be receiving a letter.

Keep checking IRS.gov "Where's my Refund" for the most up to date information.

Check here also for more information on refund delays.