Just got my 570/971 code notice - They're verifying my income and withholding

Those codes are common. Nothing to panic about. Just means they're reviewing something. Could be random. Could be triggered by something specific. Happens a lot this time of year. Keep checking your transcript weekly. Might resolve faster than 60 days.

I had the same thing happen to me! Here's what I did: 1. First, I checked my transcript every week (not daily, that made me too anxious) 2. Then I made sure I had all my documents organized in case they requested anything 3. Next, I verified that my income reported matched my W-2 exactly 4. Finally, I just had to wait it out Does anyone know if this means they'll definitely ask for more documents? Or sometimes do they just verify electronically?

After getting these same codes last month, I spent probably 20+ hours trying to reach an IRS agent to find out what was happening. Busy signals, disconnects, and automated messages saying call volume was too high. Finally found Claimyr (https://claimyr.com) which got me connected to an IRS agent in about 30 minutes. The agent confirmed they were just verifying my withholding amounts and that I didn't need to submit anything unless specifically requested. Such a relief to finally talk to someone!

I received the same notice on March 2nd, and my verification was completed by April 5th - so 34 days total. My direct deposit hit my account on April 12th. The IRS is definitely working through a backlog right now because of the March 15th business deadline and the April 15th individual deadline coming up fast.

The 570 code indicates a temporary hold on your refund while the 971 indicates a notice has been generated. According to the Internal Revenue Manual section 21.5.6.4.7, income verification is part of the IRS's standard compliance measures and doesn't necessarily indicate any issue with your return. The IRS has statutory authority under IRC Section 6201(a) to verify information before issuing refunds. Most verifications are completed within 45 days despite the 60-day timeframe mentioned in notices. This is especially true for wage and withholding verification which can often be completed through electronic matching with employer-reported data.

I just want to clarify something - is there anything we need to DO during this verification period? Or is it just a waiting game? I'm the kind of person who has my tax documents organized by year in color-coded folders (yes, I'm that person 😂), so I'm ready if they need anything, but do they typically reach out if they need more info?

You generally don't need to do anything unless they specifically request documents. I went through this last year when they verified my education credits. My transcript showed these same codes for about 5 weeks, then suddenly updated with an 846 code (refund issued). The whole process took 52 days from filing to refund, which was nerve-wracking but eventually worked out. Just keep checking your transcript once a week and try not to stress too much - easier said than done, I know!

This verification process could potentially indicate discrepancies between your reported income and what employers submitted on Form W-2 or 1099. The IRS Automated Underreporter (AUR) program flags returns with potential mismatches. Be aware that if substantial discrepancies are identified, you could face penalties under IRC Section 6662 for substantial understatement. I'd recommend reviewing your documentation thoroughly while waiting.

I had exactly this situation in February. My transcript showed 570/971 codes dated 02/26/2024. When I checked my account, it showed they were verifying my Child Tax Credit claims. I have two kids but had a change in custody arrangement that affected my eligibility. Did you claim any credits that might be triggering this review? Sometimes specific credits like EITC or CTC get extra scrutiny.