Filed 1/29, Transcript Only Shows 971 Code, State Refund Already Received

Your tax return is like a train that's hit a yellow signal light. It's not stopped completely, but it's moving slower than expected. That 971 code means a notice was issued, but it could be anything from a simple processing delay to a minor adjustment. You need to get this figured out ASAP before tax season gets even more backed up - the longer you wait, the deeper in the pile your return gets!

According to IRS Internal Revenue Manual section 5.19.1.3.3, code 971 indicates a notice has been generated and sent to your address of record. Per Publication 5344, the IRS is experiencing significant delays in processing certain return types, particularly those filed early in the season. I'm surprised at how complicated this can be - the notice could relate to anything from a simple processing delay to a potential adjustment. I'd recommend checking your IRS account online for any pending notices rather than relying solely on the transcript.

I was in exactly this situation last tax season. Filed late January, got the 971 code, and nothing else for WEEKS. Called the IRS regular number 14 times (yes, I counted) and could never get through. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) to get a callback from an IRS agent who explained they had flagged my return for a manual review because my address changed. I'm always skeptical of these quick-fix services, but it saved me from the endless hold music and actually got me answers. The agent was able to clear the hold right there on the call and I got my refund the next week.

I'm in a similar situation. Filed on January 31st, accepted same day, and got my state refund on February 11th. My transcript showed a 971 code dated March 4th. Called IRS on March 7th and they told me there's a random review flag on my account but nothing to worry about. Still waiting though and getting more concerned as April 15th approaches. They said to allow 60 days from the code date, which is ridiculous.

I just checked the IRS2Go app and the official refund status page at https://www.irs.gov/refunds and found that a 971 code by itself often means they're just processing your return normally! According to several tax forums I've been reading, when your state refund comes quickly but federal is delayed, it usually means you're just in the normal processing queue. My transcript updated with a direct deposit date exactly 21 days after filing. The lack of additional codes is actually a good sign - it means they haven't found any issues that require correction. You'll probably see a deposit date soon!

Have you checked if you claimed any credits that might trigger additional review? EIC or Child Tax Credit can slow things down. Also, did you file with a military address? That sometimes routes returns through a different processing center. Try checking your transcript again tomorrow morning - they often update overnight on Thursdays.