The IRS uses Notice CP63 to inform you they are holding your tax refund until you file. This notice is essentially the same as Notice CP88. The IRS only sends these notices if they believe you owe taxes. And, they often induce you to fail to claim a refund within the expiration date.
If you don't do anything they'll send you Notice CP2566R, adjusting your account.
Steps in Response to Notice CP63
You may believe that you did file but the IRS says otherwise. If you have the certified mailing receipt then you can argue about the filing date and there is a procedure for doing that. But, absent the mailing receipt, it is usually better to just re-file than argue.
However, since you are filing an original return you have the opportunity to go through your records and find more deductions! Once you're satisfied the return is accurate, simply sign (or re-sign) it in blue ink (so the original is apparent) & bring it in to us for a tax attorney opinion & Action Plan before you send it to the IRS.
Lost Documents & Notice CP63
Often, people fear they have lost documents needed to prepare returns. This law office specializes in finding and reconstructing lost records. See Lost Documents.
This is NOT an audit & will likely not become an audit. The IRS just wants your returns. But, they have evidence that you owe so you have to be careful.
The IRS can't enforce collection against you until you file a return or they file one for you. So, you have time to correctly prepare the returns.
But because of the legal and procedural implications, it is not wise to rush & file returns, especially if you owe. We need to get the IRS file and create an Action Plan for your specific situation. Please follow the Prep Steps for IRS Notice CP 63 and see Mr. Hopkins in Colorado Springs or Pueblo before you file!
Various Types of IRS Notice CP63: