According to Internal Revenue Manual section 21.4.1, what you're experiencing is likely a 'processing path change.' Per IRS guidelines, when a return moves between different processing departments, the tracking status may reset temporarily. This commonly occurs when: 1) Identity verification is needed, 2) Income discrepancy is detected, 3) Credits require additional verification, or 4) Address change processing is occurring. Given your recent divorce, the system may be reconciling your new filing status. I recommend checking your tax transcript for codes 570/971, which would confirm this theory. I was so worried when this happened to me, but it resolved itself within 14 days.

Let me walk you through what might be happening here. In approximately 15% of cases, a return that shows full progression and then reverts is experiencing what's sometimes called a 'verification loop.' It's possible, though not certain, that your recently changed marital status triggered additional verification. The IRS might be cross-referencing your new filing status with previous years' data. If that's the case, you might want to check if your ex-spouse has already filed, as this can sometimes create processing delays when both parties file as single for the first time after filing jointly in previous years.

I had the exact same switch from 05 to 02 this year. Called and confirmed it's nothing to worry about. Got my refund exactly 8 days after the cycle date shown on transcript. The cycle just tells you which batch your return is processed in. 02 is Tuesday's batch.

The IRS typically assigns cycle codes based on a combination of factors including the type of return, processing center workload, and sometimes even the last two digits of your SSN. In most cases, a change from 05 to 02 is simply administrative and doesn't necessarily indicate any issues with your return. It's generally considered that cycle 02 might actually be slightly faster for processing.

Did you notice any other codes that appeared along with the 150? Last year I had a 150 code show up with a 570 code (additional account action pending) at the same time, which delayed my refund by several weeks.

Make sure you check the entire transcript. Code 150 by itself is normal. But if you see codes 420 or 424 after it, that means you're being audited. Had that happen to me in 2022. Took 8 months to resolve. Don't ignore those codes if they appear.

Have you tried running your numbers through a tax calculator yet? I always do this before filing to avoid surprises. With HOH status and 4 dependents, you might qualify for: 1. Child Tax Credit (if children are under 17) 2. Credit for Other Dependents (if any are 17+ or other qualifying relatives) 3. Earned Income Credit (based on your income level) 4. Possibly education credits if any dependents are in college Can I ask how old your dependents are? That makes a huge difference in which credits you qualify for!

Looking at the 2023 tax tables, a Head of Household with $31,100 income would have a federal tax liability of approximately $1,841 before any credits. With 4 dependents, you'd likely qualify for $8,000 in Child Tax Credits ($2,000 × 4) if they're under 17, with up to $6,000 being refundable. Additionally, your EITC with 4 qualifying children and that income would be around $5,988. Even after covering the $1,841 you'd owe, and subtracting the $30 already withheld, you could potentially receive over $10,000 in refundable credits. The key is making sure all your dependents qualify under IRS rules. For 2024, I'd strongly recommend updating your W-4 to avoid this situation again.

Have you considered requesting a transcript instead of a verification letter? Compared to the verification letter process which is crawling along at a snail's pace right now, transcripts can often be accessed immediately online. I was in a similar situation last year when I needed verification for a pension rollover, and I ended up using my transcript instead. Many financial institutions will accept a transcript in place of a verification letter - it's worth asking if that would work for your situation.

I went through this exact process last year when I needed verification for my retirement account rollover. The letter took exactly 18 days to arrive. What helped me was calling the Retirement Plans Services line (877-829-5500) rather than the general IRS number. The agents there are specifically trained on retirement issues and were able to expedite my verification letter when I explained my situation. Stay calm - these delays are frustrating but temporary.

I had NO IDEA how complicated these codes were until I got a 570 myself! From what I've learned: • 570 means they're reviewing something • It CAN resolve quickly (1-2 weeks) if it's simple • It CAN take forever (2+ months) if it's complex • The cycle date on the transcript is important • Having other codes like 420 or 424 alongside it means more serious issues I'm surprised the IRS doesn't make this clearer to people!

I've tracked approximately 50-60 cases with 570 codes over the past few tax seasons, and I would say that, generally speaking, about 70% resolve within 21 days without any intervention. However, this seems to depend somewhat on the filing date and whether certain credits were claimed. For instance, returns filed in February with EITC or CTC typically take closer to the full 21 days, while simpler returns filed in March might clear in 7-14 days. The presence of a 971 code issued the same cycle date as the 570 is usually, though not always, a positive indicator of faster resolution.

Anyone know if there's a diff between the DDD (direct deposit date) on transcripts vs what WMR shows? My WMR still shows processing but transcript has a date. Wondering if I should trust one over the other or if they sync up eventually?

I was in exactly your situation 18 days ago. Had a deposit date of February 26th, 2024 with $4,782 in EITC. Money hit my account at precisely 3:27am on the exact date shown on my transcript. The PATH Act only delayed my processing until February 15th, but once I had a deposit date, it was 100% reliable. Used the money to cover my $1,213 quarterly estimated tax payment that was due.

Oh man, I'm going through something similar and it's my first time filing with a home office deduction. Got a letter last week asking for "verification" but my transcript is empty! 😅 Kinda freaking out here. My cousin ignored one of these letters thinking it was a scam (I mean, who contacts you about a tax return that doesn't exist in their system, right? lol). BIG mistake. They ended up denying his entire refund and he had to file an amended return with all the documentation, which took like 8 months to process. Don't be like my cousin! Respond ASAP with everything they ask for!

It might be helpful to know that what you're experiencing isn't technically an "audit" in IRS terminology. It's likely what they call a "compliance review" or "documentation request" which happens during initial processing. True audits generally occur after a return is fully processed, often months or even years later. These pre-refund reviews are actually somewhat less concerning, as they're usually focused on specific items rather than your entire tax history. If I were in your position, I would probably just provide the requested documentation promptly and clearly labeled. These reviews are fairly routine, especially for returns with home office deductions, and typically resolve quickly when you provide organized documentation.

Think of the 9-week timeline like when your cable company says they'll arrive between 8am and 5pm - it's their maximum liability window, not the actual expected time. The IRS is like a restaurant that tells you the wait is 60 minutes when it's really 30 - they're managing expectations. In my experience, post-verification processing is more like a conveyor belt than a waiting room. Once your verification is confirmed, your return moves through the remaining processing steps at a fairly standard pace. Most people I know (including myself) received their refunds 2-4 weeks after verification, not 9 weeks. The key is watching for transcript updates. Once you see code 846 with a date, that's your direct deposit date, and it's essentially guaranteed at that point.

Be careful about counting on getting it sooner than 9 weeks. Compared to my state refund which came in 8 days, the IRS post-verification process was glacial. While some people here got theirs quickly, I had to wait almost the entire 9 weeks last year. My verification was February 10th and refund didn't come until April 5th. I called multiple times and kept getting told "it's still processing" with no explanation for the delay. No issues on my return, no credits that would delay it - just stuck in their system. I'd recommend planning your finances as if you won't see the money for the full 9 weeks, then be pleasantly surprised if it comes earlier.

According to Internal Revenue Code §6402(m) and the Protecting Americans from Tax Hikes Act of 2015, the IRS is prohibited from issuing refunds before February 15 for returns claiming EITC or ACTC, but there's no prohibition on processing those returns. I've seen my transcript update as early as February 1st in previous years with processing codes, even though the refund wasn't issued until after the 15th. The IRS Publication 5344 clearly states that returns are processed upon receipt, but refunds are held until after the legally mandated date. I'm so relieved to finally understand how this works after years of confusion!

The Cycle Code on your transcript is actually more important than the date. If you have an 05 cycle code, your transcript typically updates Thursday night/Friday morning. If you have an 01 cycle code, it's Monday night/Tuesday morning. Without knowing your cycle code, it's hard to predict when you'll see movement, PATH Act or not.