IRS Codes 570 & 971 Holding Up $9,200 Refund - 2022 HOH Return with EIC & Child Tax Credits

I filed my 2022 taxes as Head of Household with an adjusted gross income of $40,658.00 and taxable income of $21,258.00. My transcript shows codes 570 and 971, and I'm worried about my refund that includes EIC and child tax credits. I pulled my transcript today and wanted to share the details to see if anyone can help me understand what's going on. Here's what my transcript shows: FORM NUMBER: 1040 TAX PERIOD: Dec. 31, 2022 FILING STATUS: Head of Household EXEMPTIONS: 03 ADJUSTED GROSS INCOME: $40,658.00 TAXABLE INCOME: $21,258.00 TAX PER RETURN: $0.00 SE TAXABLE INCOME TAXPAYER: $0.00 SE TAXABLE INCOME SPOUSE: $0.00 TOTAL SELF EMPLOYMENT TAX: $0.00 RETURN DUE DATE OR RETURN RECEIVED DATE (WHICHEVER IS LATER): Apr. 15, 2023 PROCESSING DATE: Apr. 03, 2023 TRANSACTIONS: CODE EXPLANATION OF TRANSACTION CYCLE DATE AMOUNT 150 Tax return filed 20231105 04-03-2023 $0.00 30211-458-81029-3 806 W-2 or 1099 withholding 04-15-2023 -$1,100.00 766 Credit to your account 04-15-2023 -$2,000.00 766 Credit to your account 04-15-2023 -$3,000.00 768 Earned income credit 04-15-2023 -$3,100.00 570 Additional account action pending 04-03-2023 $0.00 971 Notice issued 04-10-2023 $0.00 ACCOUNT BALANCE: $0.00 AS OF: Apr. 10, 2023 ACCRUED INTEREST: $0.00 AS OF: Apr. 10, 2023 ACCRUED PENALTY: $0.00 AS OF: Apr. 10, 2023 ACCOUNT BALANCE PLUS ACCRUALS (this is not a payoff amount): $0.00 Everything was moving along until these 570 and 971 codes appeared, and now it seems to be on hold. I requested this transcript on 04-02-2023 and received the response the same day. The tracking number is listed at the top of my transcript. My account shows credits for withholding, what appears to be child tax credits, and the earned income credit, but with these pending codes, I'm not sure when I'll actually receive my refund. Can someone help me understand what these codes mean and when I might get my refund? I'm especially concerned since I have significant credits pending including the EIC. Does the 971 notice mean they're sending me a letter? Should I be worried about the 570 code? The transcript shows my account balance is $0.00 with no accrued interest or penalties as of Apr. 10, 2023, but I don't understand why my refund is delayed.

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Anastasia Kozlov

Your transcript shows your 2022 tax return was filed as Head of Household with an adjusted gross income of $39,658 and taxable income of $20,258. The key date sequence here is important - you have a processing date of April 3rd, 2023, when the initial code 150 (tax return filed) was posted. Multiple credits were scheduled for April 15th, including W-2 withholding (code 806) and earned income credit (code 768). The concerning combination is the 570 code (Additional account action pending) dated April 3rd followed by a 971 code (Notice issued) dated April 10th. This sequence typically indicates the IRS has flagged something for review on your return and is sending you a notice explaining what they need to verify. While your account shows a $0.00 balance with no penalties or interest as of April 10th, the credits you're entitled to (including EIC) are temporarily held until this review is completed. The good news is there's no indication of an audit or serious compliance issue - this appears to be a routine verification hold. These reviews typically take 45-60 days to resolve, though some clear up sooner. Watch your mail for the notice referenced by code 971, as it will explain exactly what the IRS needs from you, if anything.

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