Why Does My Tax Preparer Say I Owe When IRS Transcript Shows $451 Credit Balance and "Additional Account Action Pending"?

I'm confused about my 2022 tax transcript. It shows a balance of -$451.41 as of Apr. 03, 2023, but my tax preparer said I owe money. I've gotten mixed answers from different people. Looking at my transcript, it clearly states "ANY MINUS SIGN SHOWN BELOW SIGNIFIES A CREDIT AMOUNT" and shows: ACCOUNT BALANCE: -451.41 ACCRUED INTEREST: 0.00 AS OF: Apr. 03, 2023 ACCRUED PENALTY: 0.00 AS OF: Apr. 03, 2023 ACCOUNT BALANCE PLUS ACCRUALS (this is not a payoff amount): -451.41 Under "INFORMATION FROM THE RETURN OR AS ADJUSTED" it shows: EXEMPTIONS: 01 FILING STATUS: Single ADJUSTED GROSS INCOME: 26,018.00 TAXABLE INCOME: 13,068.00 TAX PER RETURN: 0.00 SE TAXABLE INCOME TAXPAYER: 0.00 SE TAXABLE INCOME SPOUSE: 0.00 TOTAL SELF EMPLOYMENT TAX: 0.00 RETURN DUE DATE OR RETURN RECEIVED DATE (WHICHEVER IS LATER) Apr. 15, 2023 PROCESSING DATE Apr 03, 2023 The transactions section shows: CODE EXPLANATION OF TRANSACTION | CYCLE | DATE | AMOUNT 150 Tax return filed | 20231105 | 04-03-2023 | $0.00 80221-467-22911-3 806 W-2 or 1099 withholding | | 04-15-2023 | -$841.00 670 Payment | | 02-01-2023 | -$100.00 670 Payment | | 01-31-2023 | -$21.00 766 Credit to your account | | 04-15-2023 | -$1,000.00 826 Credit transferred out to | | 04-03-2023 | $1,510.59 1040 202112 971 Notice issued | | 04-03-2023 | $0.00 570 Additional account action pending | | 04-03-2023 | $0.00 I made two payments early in the year - one for $21.00 on January 31st and another for $100.00 on February 1st. I also had W-2/1099 withholding of $841.00 and received a credit of $1,000.00. There was a credit transfer out of $1,510.59 to a 2021 1040. I'm especially confused about the code 570 showing "Additional account action pending" from April 3rd, and they issued a notice (code 971) on that same date. Can someone help me understand what all this means? Why would my tax preparer say I owe when I see negative numbers and credits on the transcript, and the account balance clearly shows -$451.41?

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13 comments

Malia Ponder

Your tax transcript shows a favorable position with a credit balance of $451.41 as of April 3, 2023. Here's what the numbers tell us: Your income details show an Adjusted Gross Income of $26,018.00 with taxable income of $13,068.00, but your tax per return was $0.00, meaning you didn't owe any initial tax. You had three sources of credits: - $841.00 in W-2/1099 withholdings - Two payments totaling $121.00 ($100.00 on Feb 1 and $21.00 on Jan 31) - An additional credit of $1,000.00 However, a significant portion of these credits ($1,510.59) was transferred to cover a prior tax debt from 2021. Even after this transfer, you still have a credit balance of $451.41. The code 570 ("Additional account action pending") and the notice issued on April 3rd suggest the IRS is still processing something on your account. Your tax preparer might be looking at different information or may not be seeing this latest transcript, as the numbers clearly show a credit balance, not a debt. Since there are no accrued penalties or interest, your account appears to be in good standing.

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