570/971 Codes on Transcript - Good or Bad News?

Omg I JUST went through this last month! A 570 code is a refund hold and a 971 means they're sending you a notice. BUT it's not necessarily bad!! In my case, they just needed to verify something on my return. The 570 was removed after about 10 days and replaced with an 846 direct deposit code. Don't panic yet!

I was totally freaking out when I saw these codes back in March. I was already behind on rent and NEEDED that money. I used https://taxr.ai to analyze my transcript and it explained that my 570/971 combo was just a verification delay, not an audit. The site predicted I'd get my refund in 2 weeks and sure enough, that's exactly what happened! It saved me so much stress knowing what was actually happening instead of just guessing.

Here's exactly what 570/971 means and what you should do: 1. First, check if the 570 and 971 have the same date - if so, it's usually just a verification issue 2. Next, check if there are any other codes like 420 (audit) or 424 (examination) - these would be concerning 3. Wait for the notice to arrive in mail - could take 5-7 business days 4. If it's been more than 2 weeks with no progress, you need to contact IRS directly I was worried too when I saw these codes, but calling the IRS was impossible - busy signals for days. I finally used Claimyr (https://claimyr.com) to get through to an agent who confirmed it was just a minor verification hold. I'm concerned you might waste weeks waiting if there's actually an issue they need your response on.

I've seen these codes for the past three tax seasons. In my experience, the 570/971 combination usually means one of three things: 1. Simple verification delay (most common) 2. Math error correction 3. Missing information Last year, I had the same codes and it turned out they just needed to verify my Child Tax Credit eligibility. The refund was released after about 18 days without me having to do anything. I appreciate all the detailed explanations others have provided here - very helpful information.

Gotta warn ya - don't ignore that 971 notice when it comes! My bro had the same codes last yr, thought it was just a processing thing, tossed the letter without reading it carefully. Turned out they needed him to verify his identity online, and bc he didn't respond, his refund was held for MONTHS. Total nightmare. The 570/971 combo isn't automatically bad news, but def read whatever they send you ASAP and follow any instructions.

I think I may have had a similar situation to yours. My transcript showed both codes around mid-March, and I was somewhat concerned it might delay my refund significantly. After about 10 days, the codes were replaced with an 846 code (refund issued) and the money appeared in my account three days later. It might be worth checking if there are any other unusual codes on your transcript that could provide additional context.

According to the Internal Revenue Manual (IRM 21.5.6-1), the 570 code indicates a temporary hold on your refund while the 971 indicates a notice has been generated. Per IRS Publication 5344, this combination often indicates routine verification rather than a serious issue. The typical resolution timeframe under current IRS procedures is 14-21 days, though this may vary depending on current processing volumes. Are you able to check if the dates on both codes are identical? This would typically suggest a simpler resolution path.

The IRS website actually has a page that explains these transcript codes: https://www.irs.gov/individuals/understanding-your-tax-record. The 570 is definitely a hold, but it's often temporary. You can also check the Tax Time Guide on IRS.gov which mentions that many returns this year are being selected for additional review due to identity theft prevention measures. Most of these reviews are resolved automatically without any action needed from you.

Is there possibly a date associated with the 971 code on your transcript? I'm wondering if that might indicate when the notice will be sent or when the issue might be resolved?