570/971 Codes After Filing Previous Years - Timeline for Hold Removal?

Ugh, I feel your pain SO MUCH with these holds! 😤 I always plan meticulously for tax season, but these 570/971 situations are the WORST because there's no clear timeline. From what I've experienced and tracked in my spreadsheet, it typically takes 4-8 weeks after the prior year return is processed (not just received!) for the current year hold to lift. But honestly, I'm skeptical of anyone who gives you a definite answer because the IRS systems are so inconsistent right now.

I was in this exact situation back in February. I filed my missing 2022 return on February 3rd, and the hold on my 2023 refund was finally lifted on March 15th - exactly 40 days later. I was checking my transcript daily because I desperately needed that money for some bills. One thing that helped was that I e-filed the missing return rather than mailing it. Paper returns are taking much longer to process these days, sometimes 6+ months according to the April 2024 IRS backlog report.

I've been through this process multiple times helping family members, and here's what I've learned: 1. First, the IRS needs to process your prior year return 2. Then they need to update your account 3. Finally, they release the hold on your current return Each step can take 2-3 weeks, so you're looking at potentially 6-9 weeks total. I was curious about speeding this up, so I tried Claimyr (https://youtu.be/_kiP6q8DX5c) to connect with an IRS agent. They were able to confirm my prior year return was received and tell me exactly where it was in processing. This gave me a much clearer timeline and peace of mind instead of waiting in the dark.

I went through this nightmare last year! I had the same codes after not filing for 2021 (I didn't owe anything so I thought it was fine... big mistake). I filed the missing return in March 2023 and my 2022 refund was finally released in mid-May. It was about 8 weeks of anxiety checking my transcript every morning. The worst part was when the transcript updated with a new 971 code but no refund date - I nearly had a heart attack thinking something else was wrong. But two days later, it updated with the 846 refund issued code. Hang in there, I know exactly how stressful this waiting game is!

According to Internal Revenue Manual 21.5.6.4.7, the IRS has established procedures for handling prior year return filing compliance issues. When a taxpayer files a delinquent return to resolve a compliance hold, the system should release the hold within 30 days of processing the prior year return. However, due to current processing backlogs as noted in the April 2024 Treasury Inspector General report, this timeline is frequently extended to 45-60 days. I strongly recommend checking your Account transcript weekly rather than daily, as the updates typically occur in weekly batches. If you need this resolved urgently due to financial hardship, you should contact Taxpayer Advocate Service immediately as they can expedite in qualified situations.

The tax community wisdom on this is like weather forecasting - we can give you general patterns but not exact predictions! Think of the IRS like a giant ship turning - once you've filed that missing return, the ship has started to turn, but it takes time to complete the maneuver. Most folks I've helped see resolution in 4-6 weeks, but I've seen some lucky ones get through in 3 weeks and others wait 10+ weeks. The relief when that 846 code finally appears though... it's like finding water after crossing a desert! One tip: if you see a TC290 code appear on your account transcript, that's often a good sign that things are moving in the right direction.