I'm not entirely sure about this, but I believe you might have a small window of opportunity to address this... I had a somewhat similar situation in 2022, and I think you should be careful about timing. If your 2023 refund is already being processed, it might be too late to prevent the offset. The IRS systems typically check for outstanding liabilities right before issuing refunds, and once that process starts, it's very difficult to stop. You might want to consider calling them immediately to discuss your options, though I worry you might not reach someone in time.

Have you considered all your options here? The offset is automatic, but you do have choices for handling the remaining balance. Would a payment plan work better for your situation? Could you request an audit reconsideration if you believe the assessment is incorrect? Did you know you can request abatement of penalties (though not the tax itself) if you have reasonable cause? Many retirees qualify for first-time penalty abatement if they've had a good compliance history. The community wisdom here is to be proactive - contact them before they contact you, and always get any agreements in writing.

I filed exactly 52 days ago on January 26th and just got my refund yesterday. Here's the exact timeline: - Filed and accepted: January 26th - Transcript showed processing: February 9th (14 days later) - Got a 570 code: February 16th (21 days after filing) - 571 code appeared: March 7th (40 days after filing) - 846 code with direct deposit date: March 12th (45 days after filing) - Money in account: March 18th (51 days after filing) My return included both Child Tax Credit and some self-employment income, which definitely slowed things down. Based on patterns I've observed, simple W-2 only returns are processing in about 14-21 days right now.

NGL, last yr was a nightmare for me. Filed Feb 1, didn't get $ until MAY 😩 Turns out there was an ID verification issue but the IRS never sent a letter! I kept checking WMR and it just said "still processing" for 3 months. Finally called and spent 2hrs on hold only to find out I needed to verify on ID.me. Fixed it in 10min and had my refund 2wks later. Moral of the story: if it's been >30 days w/no movement, something's prob wrong and waiting longer won't fix it. Be proactive!

I had this exact situation on February 18th, 2023. My transcript showed the 846 code dated 2/23/2023, but WMR was stuck on processing. The money hit my account precisely on 2/23/2023 at 3:17am, but WMR didn't update until February 25th. Then on January 29th, 2024, I had the same thing happen with my early filing - 846 code appeared with a 2/3/2024 date, money arrived on 2/3, but WMR took until 2/7 to update. The transcript dates are incredibly reliable in my experience!

Instead of relying on WMR, have you tried using the IRS2Go app? Sometimes it updates faster than the website version of Where's My Refund. Also, if you haven't already, set up direct deposit alerts with your bank so you get notified immediately when the deposit hits. That way you don't have to keep checking multiple systems.

For those concerned about cycle code 0702, I wanted to share some additional information that might help ease some anxiety: The IRS processing system groups returns into weekly and daily processing cycles. Cycle code 0702 is a weekly cycle that processes on Thursdays. The first two digits (07) indicate the year (2024/2025 tax season), and the last two digits (02) indicate the day of the week (Thursday). There's been a significant increase in processing times this year, especially for returns with business income, itemized deductions, or certain credits. The IRS has acknowledged staffing shortages in several processing centers, which has contributed to delays. If your transcript shows cycle code 0702 but no DDD yet, you're likely in the queue for processing, but haven't been assigned to the final processing stage. Keep checking your transcript on Friday mornings for updates.

Cycle 0702 here. Filed Feb 1. Got DDD yesterday. Nine weeks total. Never saw any 570 codes. Just straight to 846 code with deposit date. No rhyme or reason to it. Just wait.

Important timeline info for everyone: The IRS has specific cut-off dates for changing direct deposit information. For 2024 tax returns, you cannot modify direct deposit details after your return has been accepted. Your options now are: 1. Wait for the automatic paper check (4-6 weeks after rejection) 2. Request a payment trace if 5 weeks have passed since your refund date 3. Update your address with USPS if you've moved The IRS never contacts taxpayers via email or phone about rejected deposits - they only communicate through official mail.

Just to clarify for everyone - "Santa Barbara" in the OP's question refers to Santa Barbara Tax Products Group, which handles the refund transfers for Credit Karma Tax (now Cash App Tax). They're the intermediary between the IRS and your account. If your Credit Karma account closed, Santa Barbara will reject the deposit and the IRS will mail a paper check. This is different from regular bank accounts where sometimes the bank will accept the deposit even if the account is closed and then mail you a check themselves.