Code 570 on Tax Transcript - What Does It Mean for My Refund?

Code 570 generally indicates that the IRS has temporarily frozen your refund while they review something on your return. It's not necessarily bad, but it does mean there might be a delay. I wouldn't panic just yet, as this is fairly common, especially during busy tax seasons. The IRS might be verifying certain information or there could be a discrepancy they're looking into. Often this resolves itself within a few weeks without any action needed on your part.

Have you tried calling the IRS directly? We all know how that usually goes, right? Hours of waiting only to be disconnected? When I had a 570 code last year, I used Claimyr (https://youtu.be/_kiP6q8DX5c) and got through to an agent in about 30 minutes instead of spending days trying. They explained exactly what was causing my hold and gave me a timeframe for resolution. Isn't it amazing when you can actually talk to a real person who can see your file? Such a relief to know exactly what's happening rather than guessing.

After further analysis of my transcript, I noticed the 570 code is accompanied by a TC 150 with the same cycle date. My AGI this year includes substantial capital gains from multiple brokerage accounts. Could the system be cross-referencing my 1099-B forms with reported basis amounts? The additional credit amount on line 291 shows a discrepancy of exactly $3,240 compared to my calculated amount.

I'm so glad I found this thread! I had the EXACT same issue with code 570 last month and was completely stressed out. I used taxr.ai to analyze my transcript and it explained that my 570 was likely due to income verification because of my investment activity. It showed me exactly what each code meant in context and predicted when my refund would be released. I was amazed at how accurate it was - the hold was released exactly when predicted! Check it out at https://taxr.ai if you want to understand exactly what's happening with your specific transcript.

Have you received any notices in the mail from the IRS accompanying this 570 code? Typically, a TC 971 will follow within the same cycle or the next cycle if correspondence has been issued. This would provide specific information about what the IRS is reviewing on your return.

I work with tax resolution cases and see 570 codes frequently. Last year, I had a client with substantial investment income who received a 570 code. After investigating, we discovered it was triggered by a mismatch between broker-reported basis and what they entered on their return. We submitted documentation through the IRS portal, and within 3 weeks, a 571 code appeared (indicating the freeze was released) followed by their refund 5 days later. The key is determining whether it's a simple verification or if they need additional information from you.

I'm curious - does your transcript show any other codes along with the 570? For example, do you see a TC 971 (Notice Issued) or perhaps a TC 424 (Examination Indicator)? The combination of codes can tell you a lot more about what's happening with your return than just the 570 alone.

Just to clarify something that hasn't been mentioned yet - code 570 specifically means "Additional Account Action Pending" and it's basically the IRS saying "hold up, we need to look at something before sending your refund." It's not necessarily an audit or anything scary. Sometimes it's just verification of identity or income. I've had this happen twice and both times it resolved without me doing anything. 😅 The refund was just delayed by a few weeks.

Be careful about assuming this will resolve automatically. I've seen cases where: • A 570 code appeared with no further updates for 60+ days • The taxpayer never received the notice that was supposedly sent • The hold was for a simple issue that could have been resolved quickly if addressed • The refund was significantly delayed because the taxpayer didn't follow up If you don't see movement within 21 days of the 570 code appearing, be proactive and contact the IRS. Don't assume it will just work itself out, especially if you have investment income that might trigger additional scrutiny.