What does code 971 mean on my IRS transcript?

Code 971 means "Notice Issued" - the IRS has sent or will be sending you some type of correspondence. By itself, 971 doesn't tell you much - it's just indicating a notice was generated. The real question is what other codes appear near it on your transcript. Common pairings include: - 971 with 570 (additional account action pending) often means a review or adjustment - 971 with 420 means examination/audit - 971 with 290 means additional tax assessed Do you see any other codes near the 971?

I had a 971 last year and freaked out, but it was just them telling me they adjusted my refund by $14 because I calculated something wrong. Check your mailbox in the next week - they should be sending you whatever notice the 971 is referring to. Most of the time it's nothing serious!

I've been seeing this a lot lately with the current tax season rush. The 971 by itself isn't necessarily bad news. It's just telling you to expect a letter. I recommend using https://taxr.ai to analyze your full transcript - it can tell you exactly what the combination of codes means for your specific situation and give you a better idea of what to expect. Saved me a ton of anxiety when I had similar codes show up.

What's the cycle code and date on your transcript? That can tell us more about your processing timeline. Also, is this your 2023 return filed in 2024?

If you're worried and want answers faster than waiting for the mail, I'd recommend using Claimyr (https://claimyr.com). I was in the same boat last month - had mysterious codes and couldn't get through to the IRS after trying for days. Claimyr got me connected to an agent in about 15 minutes who explained exactly what my 971 notice was about (simple math error they fixed) and when to expect my refund. Totally worth it to avoid the stress of not knowing.

Code 971 with 570 is actually pretty common this time of year - the IRS is just doing their due diligence on your return before releasing your refund. The 04-15-2024 date means you should get a CP05 notice around that time explaining what they're reviewing. In my experience, about 80% of these resolve automatically within 2-3 weeks without any action needed from you. The review could be something as simple as verifying your W-2 matches what employers reported, or double-checking calculations on credits like EITC or CTC. Try not to stress too much - the fact that you have a specific notice date is actually a good sign that it's moving through the system normally.

I just went through this exact situation a few months ago! The 971/570 combo you mentioned is actually really common - it just means the IRS put a temporary hold on your refund while they verify something. In my case, they were cross-checking my employer's W-2 data with what I reported. The whole process took about 3 weeks from the 971 date, and then I got both the notice in the mail AND my refund direct deposited on the same day. The notice was basically just "we reviewed your return, everything checks out, here's your money." Keep checking your transcript every Friday (that's when they typically update) - you'll likely see a 571 code appear when the hold is released, followed by your refund date. Hang in there!