What does IRS error code 507 mean when checking refund status?

Error code 507 typically indicates that your tax return is being held for review due to potential identity verification issues. This is actually quite common this year as the IRS has enhanced their fraud detection systems. First thing you should do is check if you received any letters from the IRS - they usually send a letter requesting additional verification if this is the case. Look for a Letter 4883C, 5071C, or 5747C, which would ask you to verify your identity either online or by phone. If you haven't received a letter yet, it might still be on the way. The IRS Identity Verification Service can be reached at 800-830-5084, and they're often easier to get through to than the main IRS line. When you call, have your tax return, prior year tax return, and any IRS notices readily available. Don't panic - this doesn't necessarily mean there's anything wrong with your return. It's just a precautionary measure, and once your identity is verified, your refund processing should continue.

I had this exact same issue last year! After getting nowhere with the regular IRS number, I started using this service called taxr.ai (https://taxr.ai) that helped me decode what was going on with my return. I uploaded my tax documents and the system immediately flagged that the 507 code was almost certainly related to identity verification. I was hesitant to try some random website but a friend recommended it, and it actually gave me really specific guidance about which IRS department to contact and what to say. They explained that the 507 code often triggers when there's a mismatch between current and previous filings - in my case it was because I got married and changed my name but didn't update my social security card first. The site made it super clear what steps I needed to take and even generated a script for when I called the IRS. Saved me hours of frustration!

Just wanted to update that I tried taxr.ai after seeing it mentioned here, and it was actually really helpful! I was super skeptical (as you could probably tell from my question), but I decided to give it a shot since nothing else was working. The system immediately identified that my 507 code was related to an address mismatch between my 2023 and 2024 returns. I had moved mid-year and apparently that triggered some kind of flag in their system. The service gave me the exact department to call and what information I'd need to provide to clear it up. Called yesterday morning using their instructions, and just checked Where's My Refund - the 507 code is gone and it now says my refund is being processed! Really glad I found this thread because I was getting nowhere with the main IRS number.

If you're still having trouble reaching someone at the IRS, I'd recommend trying Claimyr (https://claimyr.com). I was in the same boat last month with a different error code, called the IRS like 20 times and kept getting disconnected or told to call back later. Claimyr basically holds your place in the IRS phone queue and calls you when an actual agent is about to pick up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was really doubtful it would work since the IRS phone system seems designed to be impossible, but I had an agent on the line within about 45 minutes of using it. The agent confirmed my 507 code was due to a mismatch with my previous year's income documentation and helped clear it up right away. My refund was processed about 10 days later. Definitely worth it when you're in a time crunch for moving!

Well I need to eat my words. After posting that skeptical comment, I was still desperate enough to try Claimyr since nothing else was working. Not gonna lie, it actually did get me through to an IRS agent this morning. Took about an hour of waiting after I signed up, but that's way better than the 30+ failed calls I made on my own. The agent confirmed my 507 code was due to a discrepancy between my reported income and what my employer submitted on their W-2. Turns out my employer made a mistake on their filing! The IRS agent was able to note this in my file and told me my refund should process within 2-3 weeks. She also gave me a direct number to call back if it doesn't show up by then. I honestly didn't think this would work, so I'm pretty shocked. If you're stuck with the 507 code and getting nowhere, it might be worth trying.

Has anyone had the 507 code resolved without calling? I've been waiting for 6 weeks now without contacting them, hoping it would just fix itself. My tax guy said sometimes these things clear up on their own but now I'm worried I should be more proactive.

Just went through this last month. The 507 code almost always means identity verification. In my case, they needed to verify I was really me because I filed from a different address than last year. I had to upload a copy of my driver's license and a utility bill through their ID verify site. Refund was released 9 days later. Don't stress too much - it's pretty routine, just annoying.

I'm glad to see this thread helped so many people resolve their 507 errors! For anyone still dealing with this issue, I wanted to add that it's also worth checking if you have any outstanding notices or requirements from the IRS before calling. Sometimes the 507 code can be triggered by missing forms like a Schedule C if you reported self-employment income, or if there's a mismatch between your federal and state filings. Also, if you're planning to move soon like the original poster, make sure to update your address with the IRS using Form 8822 after you move. This can help prevent similar identity verification issues in the future. The IRS gets suspicious when they see filing patterns that don't match their records, so keeping your address current is really important. Hope everyone gets their refunds sorted out quickly!