IRS Transcript Shows February Refund Freeze Despite April Filing - Late Payment Penalties & Confusing Timeline

I just got my transcript and I'm seeing all these different transaction codes that are really confusing me about my refund status. Looking at the dates and codes on my transcript: TRANSACTIONS CODE EXPLANATION OF TRANSACTION CYCLE DATE AMOUNT 150 Tax return filed 20231405 04-25-2023 $5,789.00 30221-423-11616-3 806 W-2 or 1099 withholding 04-16-2023 -$2,600.00 810 Refund freeze 02-03-2023 811 Removed refund freeze 02-25-2023 768 Earned income credit 04-16-2023 -$8,830.00 276 Penalty for late payment of tax 20231405 04-25-2023 $390.00 196 Interest charged for late payment 20231405 04-25-2023 $175.00 971 Notice issued 04-25-2023 This Product Contains Sensitive Taxpayer Data I filed my tax return (code 150) on 04-25-2023, and I see my W-2/1099 withholding (code 806) and earned income credit (code 768) were processed on 04-16-2023. What's really concerning me is there was a refund freeze (code 810) on 02-03-2023, though it shows it was removed (code 811) on 02-25-2023. But then I'm seeing codes for late payment penalties (code 276) and interest charges (code 196) from 04-25-2023, plus a notice being issued (code 971) on that same date. I'm particularly worried about the cycle date 20231405 that keeps appearing next to several transaction codes. It appears next to my tax return filing (150), the penalty for late payment (276), and the interest charged (196). Can someone help me understand what's happening with my refund and why I'm getting hit with these penalties? The timeline seems really confusing - how could there be a freeze in February when I filed in April? Why does my transcript show a refund freeze that happened before I even filed my return? And what does this cycle date 20231405 actually mean? I'm also confused about why I'm seeing a late payment penalty when I thought I was getting a refund based on my withholding and earned income credit. Does the notice issued (971) explain these penalties? I haven't received anything in the mail yet explaining these charges.

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14 comments

Mei-Ling Chen

•10M

The transcript shows several key transaction codes that tell an important story about your tax situation. The cycle date 20231405 appearing multiple times indicates this is all part of the same processing cycle. Your return (code 150) was processed on April 24, 2023, with your withholdings (806) and earned income credit (768) being credited as of April 15, 2023. What's unusual is the presence of a refund freeze (810) from February 2, 2023 - before your actual filing date. This typically indicates the IRS had pre-emptively flagged your account, possibly due to identity verification needs or previous year issues. While the freeze was lifted (811) on February 27, you're being assessed both late payment penalties (276) and interest charges (196) as of April 24. These penalties, combined with the notice issued (971) on the same date, suggest there may be an outstanding balance from a previous tax year or other compliance issues the IRS is addressing. The transaction codes follow a standard IRS format (XXX-XXX-XXXXX-X) as shown in your 150 code entry. This internal numbering system helps track your specific case through the IRS processing system. This combination of codes indicates you should carefully review the notice (971) being sent, as it will likely explain the reason for the penalties and any required actions on your part.

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