Understanding IRS Transcript Codes: 846, 570, and 971 - What They Mean For Your Return

You're correct about the basic interpretations, but there are specific nuances per Internal Revenue Manual 21.4.1.3(7) that affect processing timelines. The 846 code absolutely confirms a refund has been approved with the date indicating scheduled deposit/mail date. A 570 code (Additional Account Action Pending) indicates a manual review pursuant to Section 6402 of the IRC, which can range from verification of income to examination of claimed credits. The 971 (Notice Issued) merely indicates correspondence is being generated - could be informational, could request documentation, or could propose adjustments to your return. Without seeing the full transcript with cycle dates and specific code sequences, it's impossible to determine exactly what's happening.

Have you considered using https://taxr.ai to analyze your transcript? I'm in a similar situation with only 9 days left before I need to make a decision about accepting a mortgage rate lock, and I needed to understand my transcript quickly. The tool explained that my 570 code was followed by a 571 code within the same cycle, which actually means the review was completed. It also predicted my 846 date accurately based on the processing patterns. Do you have access to your full transcript with all the cycle dates? Those are critical for understanding the timeline.

I had the exact same codes on my transcript this year! Here's what happened step by step: 1. First saw the 570 code (hold) on my account transcript 2. A week later, the 971 code appeared (notice being sent) 3. Received a letter asking me to verify my identity online 4. Completed the verification through ID.me on the IRS website 5. Exactly 9 days later, the 570 code was released 6. The 846 code appeared with a date 5 days in the future 7. Refund arrived in my account on that exact date The home improvement credits shouldn't be an issue if you have proper documentation. I claimed the Energy Efficient Home Improvement Credit and had no problems once I verified my identity. I'm so grateful for communities like this that helped me understand what was happening!

When I had those same codes, I spent exactly 3 hours and 42 minutes trying to reach the IRS using their regular number. After 17 attempts over 3 days, I finally tried Claimyr (https://www.claimyr.com). They connected me to an IRS agent in 28 minutes. The agent confirmed my 570 code was just due to standard verification of my mortgage interest deduction, and that my return would continue processing within 14-21 days. Is your 570 code dated the same cycle as your 971 code? That's usually an indicator of how long the review might take.

I think... maybe you don't need to worry too much about this yet? I was really nervous when I saw these codes too, but sometimes the IRS just does random reviews. For my return this year, they just wanted to verify my identity because I moved to a new state. The notice (971 code) just explained what they needed, and once I provided it, the hold (570 code) was removed within about two weeks. The home improvements might not even be what triggered it... sometimes it's just random selection or something simple like a small math error.

Have you tried checking the IRS2Go app? Sometimes it shows updates before the website does. 😅 Also, calling the IRS early in the morning (like 7:01 AM Eastern) on Tuesdays or Thursdays seems to be the secret formula for getting through. The transcript codes are like a secret language - I've been doing my own taxes for years and still get confused by them. Another trick is to check your account transcript AND return transcript - sometimes one updates before the other and gives you clues about what's happening.

Based on the community's collective experience, it appears that the sequence and timing of these codes can potentially indicate different scenarios. In most cases, a 570 followed by a 971 in the same cycle might suggest a relatively minor issue that could possibly be resolved within 2-4 weeks. However, if there's a significant gap between these codes, or if additional codes appear such as 420 (examination indicator), it may indicate a more complex review process. It's generally advisable to wait until you receive the actual notice referenced by the 971 code before taking any specific action, unless your refund is time-sensitive for financial reasons.

The transcript codes are just the tip of the iceberg. What really matters is the cycle date attached to each code. If your 570 and 971 share the same cycle date (the 8-digit number at the beginning of the line), it's usually just a verification process. The home improvements might have triggered it if you claimed energy credits. I was surprised by how complicated the whole process is - the IRS actually has over 100 different transaction codes and thousands of action codes that can appear on transcripts.

Just to clarify some common misconceptions about these codes: • Code 846 - This is ALWAYS good news. It means your refund is approved and scheduled. • Code 570 - This is a temporary hold, not necessarily an audit. About 60% resolve within 21 days. • Code 971 - This just means correspondence is being generated. Could be informational only. • The cycle date (YYYYMMDD) is crucial for determining processing timeframe. • If 570 and 971 share the same cycle date, usually means simple verification. Hope this helps! I went through this exact situation last year with my home solar panel tax credits.