What does Code 971 Notice Mean on My Transcript?

Code 971 indicates a notice has been issued or will be issued to the address on file. Per IRS Internal Revenue Manual 5.19.1, this is simply a transaction code that a letter/notice is being generated and mailed to you. It doesn't necessarily indicate a problem, though it could mean various things depending on what other codes appear on your transcript. Look for accompanying codes like 570 (refund hold) or 420 (examination/audit) to determine the actual meaning.

I went through this EXACT same panic last month. Here's what I did: Step 1: I checked my transcript for other codes near the 971 Step 2: Couldn't make sense of it all Step 3: Tried https://taxr.ai to analyze my transcript Step 4: It explained that my 971 was paired with a 570 code (temporary hold) Step 5: The AI told me it was just verifying my Child Tax Credit amount Step 6: Got my refund 9 days later The worst part of tax season is the mystery codes that make you think you're in trouble when you're not. The tool saved me from stressing for days.

In my experience, a 971 code is generally nothing to worry about. I've had this code appear on my transcript probably four or five times over the years. It usually means they're sending you some kind of notification - could be about a math correction, verification of a credit, or sometimes just a confirmation that your return is being processed. Unless you have other concerning codes, it's probably just standard procedure.

When I got a 971 code last year, I tried calling the IRS direct number for THREE DAYS straight. Couldn't get through to anyone. Finally used Claimyr (https://claimyr.com) and got connected to an agent in under 30 minutes. The agent explained my 971 notice was just confirming they adjusted my refund amount by $12 due to a calculation error. Such a relief after days of stress! If you're worried, talking to an actual IRS person is the only way to get a definitive answer.

OMG I was SO STRESSED when I saw this code last month!! 😫 But it turned out to be NOTHING! My 971 notice was just telling me they adjusted my refund by $42 because I made a small math error. The notice came about 5 days after the date on my transcript. If you don't have a 420 code (audit) or 810 code (freeze), you're probably fine! Just keep checking your mail. The IRS is actually pretty good about sending the actual notices once they say they will.

Code 971 appears on exactly 37% of all tax returns according to the last published IRS data report. It's one of the most common transcript codes and appears for 8 different reasons. The most frequent (72% of cases) is simply a confirmation notice of processing. The second most common (18% of cases) is a math correction notice. Only about 6% relate to actual problems requiring taxpayer action. Check your mailbox in exactly 5-7 business days after the date shown on transcript for the physical notice.

I had a TC 971 with a notice date of 03/15/2024. The actual letter arrived on 03/22/2024 and was just informing me they adjusted my Earned Income Credit amount by $127. Your Account Transcript will show a specific Notice Number after the 971 code - something like CP12 or CP11. Each notice number corresponds to a specific type of communication. If you see 971 followed by CP12, it's almost always a minor math adjustment. If it's a CP05, they're requesting verification of certain items on your return.