IRS Code 420 Examination & 810 Refund Freeze on 2025 Return with EIC - Filed January, Notice 02-17, Timeline Help Needed

The transcript shows a sequence of IRS actions starting with an examination (Code 420) initiated on January 31st, 2025, followed by a refund freeze (Code 810) and notice issuance (Code 971) on February 17th. This pattern is typical of an Earned Income Credit verification process, confirmed by the presence of Code 768 for EIC. Your cycle number 75221-421-16710-5 indicates your return is being processed in the 21st week of 2025. The processing date of February 17th, 2025, reflects when the IRS began working on your return, while the pending credits (766 and 768) are scheduled for April 15th, 2025 - the standard tax return due date. The $0.00 amounts shown next to certain codes suggest no additional tax liability has been determined yet. The examination is likely focused specifically on verifying your EIC eligibility rather than broader tax issues. These types of EIC verification reviews typically take 45-120 days to resolve. It's important to watch for and promptly respond to any IRS correspondence (referenced by Code 971) requesting additional documentation to support your EIC claim.

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im in the same boat rn. been waiting since january and still nothing smh

They ALWAYS do this with EIC claims these days. The IRS is so broke they cant even process returns without flagging everything 🤡

Had this last year, took about 60 days to resolve after I sent in my kids birth certificates and school records for EIC verification.

Word of advice - make copies of EVERYTHING you send them. learned that the hard way last year when they 'lost' my documents 🙄

Based on your transcript, the examination timeline looks pretty standard for EIC verification. The key thing to watch for is that Code 971 notice - it should arrive within the next few days if it hasn't already. When it does come, read it carefully because it will tell you exactly what documents they need to verify your EIC claim. The good news is your credits (766 and 768) are still showing for April 15th, which means they haven't been removed yet. This suggests the review is just verification, not a denial. Most EIC examinations I've seen resolve within 6-10 weeks if you respond quickly with the right documentation. Keep checking your transcript weekly for updates and be ready to send whatever they request via certified mail. The waiting sucks but it's pretty routine unfortunately.