To find out when you should expect your federal tax refund, you’ve probably been checking your IRS tax transcript online.
If you’ve noticed Code 570 and Code 971 on that transcript and are wondering what those codes mean for you and your money, today I’ll explain all of the possibilities for you.
What do Code 570 and Code 971 mean?
You’ll find Code 570 or Code 971 in the Code section of your online tax transcript once the IRS has accepted your return as part of their initial process.
Code 570 shows up when additional reviews are needed in order to process your return and refund. This code means the processing of your return is on hold until the review is completed.
Code 971 shows up when the IRS sends you a notice to provide you with details about an issue regarding your tax return. If you see Code 971 right after Code 570 on your transcript, that means the IRS sent you a notice regarding their additional review.
Why is Code 570 on my IRS tax transcript?
There are lots of reasons that you may see Code 570 on your transcript. Some of the more common ones are:
- The tax credit amount you reported for credits such as the Child Tax Credit or Earned Income Tax Credit do not match what the IRS has on record.
- The stimulus payment amounts you entered do not match what the IRS has on record.
- Your reported wages do not match the amounts your employer reported.
- Your identification requires further verification.
- You filed for an Injured Spouse Allocation using Form 8379.
What should I do if Code 570 is on my IRS tax transcript?
Unfortunately, there’s really nothing you should do or can do to help move along the processing of your taxes after seeing Code 570. If the IRS requires more information from you, they will contact you. Fortunately, many times Code 570 doesn’t require any action on your part, and the IRS is able to resolve the issue and continue processing your return and refund.
Depending on the particular issue the IRS was investigating for your return, it can take between a few weeks and a few months to resolve the issue. If you have specific questions about your return and don’t want to wait, you can call the IRS, but don’t be surprised if they don’t have much information for you. I wrote a helpful post about how you can speak to a real person at the IRS.
However, if it has been more than a few months and you haven’t received an update from the IRS, you may also consider contacting the Taxpayer Advocate Service.
Why are there money amounts and dates next to Code 570 and Code 971 on my IRS tax transcript?
If you see $0.00 on the same line as any tax codes on your transcript, it means that the reason for the code won’t affect any money you’ve reported or may be refunded. If the code has affected your refund, you will see either a negative or positive amount there instead.
The dates you see on the same line as any tax code indicate when the action has taken place. Make sure you closely examine those dates as your tax transcript can include dates from the past several years.
How will I know when the Code 570 review is over?
Once the review is complete, you will see Code 571 or Code 572 on your tax transcript to indicate that the issue has been resolved and the return is now back in processing.
You will also likely see Code 971 on your transcript again. This indicates that the IRS has sent you a second notice to let you know the review has concluded.
If you see the same date next to Code 571/Code 572 as is next to Code 971, you can generally expect to receive your refund within 3 to 6 weeks. However, if there is a different date next to Code 571/Code 572 than the date next to Code 971, this generally means more processing is needed and you can expect more of a delay before receiving your refund.
Once you see Code 846 on your transcript, you can breathe a sigh of relief! This code lets you know for sure that your refund has been released for payment and your money is on the way.
What if I don’t agree with the IRS’ decision after my Code 570 review?
If the IRS review ended with the IRS adjusting your tax return or refund amounts and you don’t agree with their conclusion, you should contact a CPA to help you sort out the issue. You can also contact the Taxpayer Advocate Service for help.