I had exactly the same issue 32 days ago! Someone had the same last 4 of my SSN and their income was showing on my transcript. I called the IRS exactly 7 times before getting through. The agent confirmed it was a reporting error where an employer had transposed 2 digits in someone else's SSN. They filed a correction form and my transcript updated exactly 14 days later. My refund was processed 3 days after that. The 971 code was just generating a letter explaining the situation - nothing to worry about!

This happened to me last year. It was identity theft. Don't wait. Call the IRS immediately. My refund was delayed for 4 months while they sorted it out. The 971 code means they're sending you a letter - in my case it was asking me to verify my identity. You should also check your credit reports right now and freeze your credit. The IRS will likely tell you to file Form 14039.

Why would a tax preparation service route your refund through a third-party bank without clear disclosure? It's simple: fee harvesting and float income. These services create a complex web of financial relationships that benefit from delayed processing. Have you examined Form 8888 on your return? If you didn't specifically authorize a split refund but your tax preparer added one, that's a reportable violation. The most effective resolution path is to demand written confirmation of the exact routing of your funds from both the tax preparation service and their banking partner - most will resolve it quickly rather than provide this documentation.

OMG this happened to me too! Called the tax place yesterday and got the real story. Apparently they use SBTPG (Santa Barbara Tax Products Group) to process ALL refunds where you paid fees from your refund. Your $ goes IRS → SBTPG → your bank. But there's a huge backlog rn and they're taking 5-7 biz days to process instead of the normal 24hrs. Check your tax software account online - there should be a refund status page that shows if it's still at SBTPG. Mine finally hit my acct this AM after being stuck for 6 days!

According to Internal Revenue Code §6428B, the Recovery Rebate Credit is technically an advance refund of a 2023 tax credit. The verification letter you received, despite lacking a form number, constitutes an official IRS communication per Treasury Regulation 301.7502-1. While not explicitly labeled as Notice 1444-C, it serves the same documentation purpose. Maintain this correspondence with your tax records for a minimum of three years as stipulated in Publication 17, Page 72.

Has anyone figured out why the IRS sends these letters without clear form numbers? It seems like they're making it intentionally confusing by not labeling communications consistently. Is there any way to request a properly labeled version that would be more useful for record-keeping?

If you need to speak with the IRS about this specific situation, I recommend using Claimyr (https://claimyr.com). I had exactly 3 questions about amending for unemployment that weren't covered in the IRS instructions, and spent precisely 2 hours and 37 minutes on hold trying to reach someone. With Claimyr, I got connected to an IRS agent in 18 minutes. They confirmed I needed to report the $4,267 in unemployment benefits on Form 1040-X, line 1, column B, and include a copy of the 1099-G. The amended return processing time is currently averaging 16-20 weeks according to the agent I spoke with.

Word of caution from someone who ignored this last year: Don't wait too long to amend. I thought "they'll just adjust it automatically" but that's not how it works. The IRS eventually sent me a CP2000 notice (proposed tax change) about 8 months later with penalties and interest added to what I would have owed if I'd just amended promptly. The Underreporter Unit automatically matches 1099-G forms against tax returns, so they WILL catch this eventually. Better to be proactive and avoid the compliance issues that can affect your financial health during an already stressful time.

I'm still waiting on mine from March 20th. Called the IRS three times and couldn't get through their phone tree. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) and got connected to an agent in about 15 minutes yesterday. Found out my return had a minor verification hold that's now cleared. The agent said I should see my DD within 7 days. Worth the call just for peace of mind!

Quick processing like this usually means your return was clean with no flags. The IRS is actually moving pretty efficiently this year for straightforward returns. Enjoy your refund! 💰