Transaction codes and tax topics are used across IRS refund applications (like WMR/IRS2Go) and account transcripts to provide information for individual and business filers into what is currently happening with their tax return processing, reasons for potential delays, when a refund will be paid or why it was lower than expected.
You will generally see Transaction Code 570 (TC 570) on your tax transcript (under the Explanation of Transactions section) once your return has been through initial system processing by the IRS.
This transcript transaction code indicates additional reviews are being done and your return processing (and refund payment) is frozen until further resolution. This generally corresponds with a WMR/IRS2Go message that your return is under processing or review (Tax Topic 152).
It can take a few weeks to several months for TC 570 issues to be resolved, given the wide variety of issues this covers. I have provided a few examples in the subsequent sections below.
Unfortunately, you cannot do much until the IRS provides an update (via a formal notice) and/or reconciles the issue internally. They will provide another updated or notice (TC 971) when the issue is resolved.
What Does TC 570 mean?
Formally, according to the IRS pocket guide, TC 570 on your tax transcript means your return is on hold due to a pending additional liability revuew. No further processing or refund payment can be made until this hold is lifted.
Code 570 on your transcript may be due to many factors, such as a mismatch with employer reported wage income, injured spouse claims, ID verification or reconciling tax credits (like the EITC, RRC or CTC) claimed in your tax return versus what the IRS has on record.
Because the IRS tax systems cannot automatically reconcile these issues, they are sent for additional review and verification. This results in TC 570 showing up on your tax transcript.
You will normally see code 971, right after the 570 one. TC 971 is the generic code for an IRS notice or letter that will provide more details on the issue or advise you of further IRS delays (e.g additional 60 day review) to review your situation.
How can I resolve TC 570 via TC 971 IRS Notice?
Following additional reviews the IRS may be able to resolve TC 570 errors on their own and no further action would be needed from the tax filer and your return will be released for further processing, including payment of refunds.
An internal or automatic resolution by the IRS would generally only delay your refund by one to three weeks. You will get a notice of the resolution and an opportunity to appeal the IRS adjustment. But the refund processing and payment will resume in the interim.
If more information is needed to resolve the issue the IRS will send a letter to the tax filer requesting additional documents or details. They will send a formal notice (also reflected as TC 971 on your transcript) to the tax filer on the discrepancy and potential refund reduction, and your options on next steps.
What do the amounts on code 570 line mean?
It may have a $0 amount against the TC570 line if the IRS is still processing/reviewing your return and/or the issue is non-monetary. The amount may change to a liability (positive number) if the IRS adjusts your return.
What do the dates next to 570 and 971 transcript lines mean?
In addition to amounts on your transcript lines, you need to also review the dates. Because you may see transaction lines spanning several tax years, ensure you are looking at the ones for the current year. E.g 2022 dates for the 2022 tax season.
Note that if you see TC 971 then TC 570 on your transcript with the same dates it generally means the IRS has auto adjusted your refund amount and sent you a notice of resolution.
You should then get paid within 3 to 6 weeks, assuming no other issues and you see lines 846 and 571 or 572 (see next section) on your transcript.
If you see TC 570 then TC 971 with different dates and your refund amount did not change, it means a hold and may not update as quickly because the IRS is still processing and will likely take more than the normal refund processing timeline.
You will need to ensure you follow the provided instructions in the IRS notice mailed to you and promptly respond to requests for more information or verification (where applicable) to reduce how long your refund payment is delayed.
When will I know my 570 issue is resolved (Code 571, 572 and 846)?
You will know your TC570 is resolved when it progresses to Tax Code 571 (freeze resolved) or 572 (Resolved Additional Account Action). Or your liability balance goes to $0 due to resolution of the issue. A final notice (971) will be issued for the resolution.
If no further issues are found with your return, a refund (TC 846) will then be released for payment, if applicable.
How long will this delay my refund?
The IRS generally says additional reviews will take 45 to 60 days. However in recent tax seasons, due to processing delays and backlogs, this has been taking 90 to 120 days.
However if the issue is minor or a common trend the IRS is seeing (e.g advance Child tax credit payment mismatches or recovery rebate credit overpayments) affecting a large number of tax payers, they tend to implement auto resolutions/adjustments pretty quickly which only ends up delaying refund payments for a week or two.
Help! What if my IRS adjustment is wrong?
Tax filers will have an opportunity to appeal any IRS adjustment, but will still get the adjusted refund ahead of this. If they win the appeal, the IRS will make the additional refund payment at a later stage.
You can also contact the Taxpayer Advocate Service (TAS) to help resolve or claim hardship resolution in certain cases. However given the long queue of people in this situation TAS support may take a while and is prioritized for true hardship cases (e.g. imminent eviction or medical reasons).