CP63: We're Holding Your Refund Until You File Missing Returns

Why you might get this

• The IRS's records show you still haven't filed one or more tax returns.
• The IRS believes you'll owe additional tax on the returns you haven't filed.
• Because of this, they are holding a refund you were expecting instead of sending it to you.

The deadline

This notice does not give you a hard legal cutoff. The IRS says they will keep holding your refund until they hear from you — either when you file the missing returns or explain why you don't have to file. The sooner you respond, the sooner your refund can be released. If you already filed within the last eight weeks, the IRS says you can wait and don't need to do anything yet.

This notice doesn't carry a fixed response deadline, but it still deserves attention — see what to do below.

What to do

1. File the missing tax return or returns as soon as you can.
2. Or, tell the IRS why you're filing late, why you don't have to file, or that you already filed.
3. Review your own records to confirm which prior-year returns you've actually filed.
4. Call the toll-free number on your notice, or write to the address on the notice, if you disagree or have questions. Have your paperwork ready.
5. If you can't pay the full amount you owe when you file, look into a payment plan (an agreement to pay over time) that you can apply for online.
6. Check that enough tax is being withheld from your paycheck so you don't fall behind again.

What happens if you ignore it

The IRS will keep holding your refund and won't release it until you file the past-due returns or explain why you didn't need to file. If you don't file, the IRS's collection process for late or unfiled returns can move forward. If they decide you owe tax on returns you later file, they may use all or part of your held refund to pay that balance.

If you can't afford to pay or you're stuck, you may qualify for free help from the Taxpayer Advocate Service or a Low Income Taxpayer Clinic. You can also authorize someone to represent you before the IRS.

A CP63 notice means the IRS is holding your refund because their records show you still haven't filed one or more tax returns — and they think you may owe tax on them. Instead of sending your money, they're keeping it until you respond.

Here's the good news: you're in control of getting things moving. You have a few options. You can file the missing return or returns right away. Or, if you believe you don't have to file, or you filed late for a reason, you can explain that to the IRS. If you already filed within the last eight weeks, you may not need to do anything yet.

To respond, call the toll-free number printed on your notice or write to the address shown there. Keep your paperwork handy. If you'll owe tax and can't pay it all at once, you can apply online for a payment plan to pay over time.

Once the IRS has all your past-due returns — or a clear explanation — they can release your held refund. Filing electronically next year can help you avoid this.

Solace can keep an eye on your IRS account and let you know when your refund status or filing record changes, so you're never guessing.