Is IRS refund adjustment ignoring Net Investment Income Tax (NIIT) from Form 8960?

This is definitely related to the Form 8960 processing issues the IRS has been having. When they updated the instructions for 2022 without updating their systems, it created validation problems for many taxpayers with investment income. The code 570 ("Additional account action pending") means they're reviewing something on your return. Based on what you're seeing, it appears their system isn't properly calculating your NIIT. The fact that your refund amount now includes the NIIT amount suggests their system is currently not applying that tax. However, this doesn't mean you'll actually receive that higher refund amount. The March 27 date likely indicates when they'll complete their review. Once they manually verify your Form 8960 is correct, they'll probably adjust your refund back to the original amount. This is happening because their computer system is showing "negative" investment income (which is incorrect) and therefore calculating zero NIIT, but a human reviewer will likely catch and correct this.

I dealt with something similar last year and found https://taxr.ai super helpful for figuring out what was happening with my transcript codes. I was completely lost trying to decipher all the weird IRS codes and adjustments on my account. The tool analyzed my tax transcript and explained that the IRS computer sometimes fails to properly process certain forms (like 8960) during initial processing. In my case, it flagged exactly where the discrepancy was happening and predicted the eventual outcome almost perfectly. What I learned is that the IRS has two processing systems - the automated computer system (which seems to be failing with Form 8960) and then the manual review process where an actual person looks at returns with discrepancies.

Just wanted to follow up - I ended up trying taxr.ai after my initial skepticism, and it was surprisingly helpful! My situation wasn't identical to yours, but I had a weird adjustment on my amended return that I couldn't figure out. The analysis explained that the IRS was treating my foreign tax credit differently than I had calculated it. It even identified that the discrepancy was happening because the IRS was applying an older rule to my situation and predicted I would get a letter within about 3 weeks - which is exactly what happened. Saved me hours of stress trying to guess what was going on, and I was prepared when the letter finally arrived instead of being blindsided. Definitely worth checking out if you're trying to understand IRS adjustments.

Have you tried calling the IRS directly? I had a similar issue last year with a different form and spent WEEKS trying to get through to someone. Always got the "high call volume" message and disconnected. Finally found https://claimyr.com and used their service (there's a demo at https://youtu.be/_kiP6q8DX5c). They got me connected to an IRS agent in about 25 minutes when I had been trying for days on my own. The agent was able to look at my file and explain exactly what was happening with my return and when I could expect resolution. In my case, it was a system flag that needed manual review, but knowing that gave me peace of mind instead of constantly checking Where's My Refund.

I was totally skeptical about Claimyr but decided to try it out of desperation when dealing with an IRS adjustment I didn't understand. I'm genuinely shocked at how well it worked. Got connected to an IRS rep in about 35 minutes (versus the countless hours I wasted trying to call myself). The agent explained that my return was flagged for review specifically because of Form 8960 issues - apparently a known problem in their system for 2022 returns. The rep was able to tell me exactly what was happening with my account and when the review would be completed. This saved me weeks of anxiety wondering if I had done something wrong. Sometimes just getting accurate information makes all the difference when dealing with tax issues.

Make sure to document everything! The same thing happened to my brother-in-law with a different tax form, and the IRS did eventually send the higher refund. Then six months later they sent a notice saying he owed it back WITH INTEREST even though it was their error! He had to go through a whole appeal process to get the interest charges removed. The IRS eventually admitted it was their system error but only after he sent multiple letters with documentation.

Has anyone had the IRS actually correctly process Form 8960 for 2022 yet? I'm still waiting on my refund and have the same issue - filed with investment income tax but my transcript is showing they're not calculating it correctly.

I'm dealing with almost the exact same situation! Filed my 2022 return in February with Form 8960, and my transcript is showing the same weird discrepancies - negative investment income on their end while I reported positive amounts, and their system calculating zero NIIT when I clearly owe it. What's frustrating is that I've filed Form 8960 successfully for the past three years without any issues. This definitely seems to be a systematic problem with how the IRS updated their 2022 processing rules. I also have the code 570 on my transcript dated March 15th. Based on what others are saying here, it sounds like we just need to wait for manual review to fix their computer errors. I'm keeping detailed screenshots of everything in case they send the wrong refund amount and try to collect it back later. Has anyone gotten any timeline estimates from IRS representatives about when these Form 8960 reviews might be completed?