If an individual owes money to the federal government because of a delinquent debt, the Treasury Department can offset that individual’s federal payment or withhold the entire amount to satisfy the debt.
HEALTHCARE PENALTY OFFSET (896)
January 29, 2015 at 1:47 am #4096240
Anyone with 896 & 570 transaction codes on your transcript, please post here. Let’s update each other.
January 29, 2015 at 5:49 pm #4097044
I just spoke to an IRS rep and was told that I was in review but he could not tell me why because its too early. I told him that i was able to pull my transcript and that I had the 896/570 codes. He told me that the 570 meant I was the code for “review” and that it could delay my refund 45-60 days! I thought this code simply meant that the US treasury had to take my penalty out and then release my funds?! So confused. Filed 1/20 in HRB office, accepted same day. Have had 1 bar on wmr and topic 152 since the 20th. Any thoughts?January 29, 2015 at 5:39 pm #4097035
That’s good…. just if we could think of a way to get it lolJanuary 29, 2015 at 5:24 pm #4097026
Right, what tt shows should be ALREADY minus the feeJanuary 29, 2015 at 5:17 pm #4097019
So what ever our refund shows from tt that what it is…. not that minus the fee cents they alreqsy took it off?????January 29, 2015 at 4:56 pm #4097008
@Ty TT didn’t actually take it. They just put it on paper telling the IRS what they need to take from your refund…I have TT as well.January 29, 2015 at 4:48 pm #4096998
Answer me this ppl…. going to try to explain this the best way… when I doing my taxes on tt, when I got to the healthcare thing and I said no I didn’t have health care it took 182 away from my refund and gave me my total… so I guess what I’m saying is they should not be taking anything away cents tt automatically Took itJanuary 29, 2015 at 4:43 pm #4096994
yes @Jansvan 70 (the blue dot guy) thats is what im saying too….i looked at past transcripts too and those dates like this year dont come close to went i actually got it….so thats why i am saying it will be resolved way before tht 2/16 date its giving usJanuary 29, 2015 at 4:39 pm #4096992
@carenpa exactly its not supposed to be delaying our refund…so maybe it wont….its you have a cycle code 20150402 (that is tomorrows cycle) than we may see our money tomorrow or over the weekend….also take into consideration your bank…so even if they do release your money tomorrow like they should you still may not see it till monday depending on your bank….i filed with HR Block so i am getting mine on my emerald car, so as soon as its released ill see it on there…January 29, 2015 at 4:35 pm #4096986
Again another story! Ughh. Anyone notice that every IRS agent, tax company, tax preparer and tax advocate has a different answer. They didn’t know what they were doing and instead of sending out a notice and admitting wrongdoing they turn it around and make us chase our tails looking for an answer. My new mantra for next year is I am not going to file early, I am not going to file early!January 29, 2015 at 4:33 pm #4096983
Amber…. I would have to disagree with that… if that was the case sbbt would have my money now and they don’t… There is no telling how long this will takeJanuary 29, 2015 at 4:33 pm #4096982
I know we all have that 570 code so what I’m about to say may or may not apply….
We all have that 2/16/2015 out there to the side on our account transcripts and are feeling we may not get our money until then…
Well I went back and looked at my past years (2012, 2013) ACCOUNT transcripts…
My 2013 account transcripts says I was refunded 2-24-14 but in actuality it hit my bank 2-6-14
My 2012 account transcript says I was refunded 2-18-14 but Ina actuality it hit my bank 2-1-14
So I don’t know how much I would rely on that 2-16-14 date….it could and hopefully will come much sooner.January 29, 2015 at 4:32 pm #4096981
@carepena: When I talked to an IRS rep earlier they asked me when I filed and I told her the 9th and was accepted the 12th. She told me to call back by feb 1st because it would be the 21 day mark. I think she was just trying to get me off the phone because she never looked at my personal info just spitting out the 21 day crap.January 29, 2015 at 4:30 pm #4096980
@ comeonnn its not a hold till 2/16/15 that is the 21 day mark….if they dont have it fixed by then that just means they will owe you intrust on all your money…sooo believe me it will be fixed before then…cause we all know they wont pay us moer than they have too…..lolJanuary 29, 2015 at 4:27 pm #4096979
the 2/16/2015 that everyone is seeing on their transcripts DOES NOT mean that is when they are holding your money till……its the 21 day mark…and it means that after that date your money will start to gain intrust because they went beyond the 21 day mark….so they will have it fixed before then cause god forbid they havet to pay us anymore money than they have to….lolJanuary 29, 2015 at 4:27 pm #4096977
So what about all of the people I saw posting that they have the health penalty and have two bars with DDD dates for tomorrow? Is it only people who filed early that have a hold until 2/16?January 29, 2015 at 4:26 pm #4096975
I have the 570 code as well but in my case i have a “premium tax credit” rather than an offset because I overpaid for insurance rather than underpaid or went without. So instead of an 896 i have an extra 766 “credit to your account” So in my case although I’m sure that it’s the same healthcare debacle screwing things up, I’m apparently waiting on money to be credited instead of removed…. UGHJanuary 29, 2015 at 4:23 pm #4096973
So the people whom said they had the penalty but got DDD were not being truthful because wouldn’t this have happened to everyone. It does sound like the 21 day spiel. So does our 21 day go from this Monday or the 20th as I have had my bar since then? So we will not get our money until 2/20 which is past 21 days and according to the IRS it is not supposed to delay our refund which it is!January 29, 2015 at 4:22 pm #4096972
hey guys, i heard over on facebook a man was saying he looked into this 570 code stuff, and that they are using the 570 code to let themselves know who had insurence and who didnt…this way they knew who to take fees from…because its all new this year…..well he also said that if your like me and have a cycle code of 20150402 that tomorrow is the DD for that cycle, and he said that he thinks we could still see our money even without the WMR updating for us…..he said he thinks because they are using that 570 code to identify people who didnt have insurance that that code maybe why WMR isnt updating…..so if you have the cycle code 20150402, we may still have hope of seeing or money tomorrow or over the weekend…January 29, 2015 at 3:55 pm #4096950January 29, 2015 at 3:54 pm #4096947January 29, 2015 at 3:53 pm #4096945
I honestly do not think it will take up to 21 days because they are required to notify us about the delay and we all do not have the 971 code for the notice.January 29, 2015 at 3:50 pm #4096943
@2013taxpayer I think you’re probably right! Excuse me if I made a mistake…my brain is doing backflips ever since my transcript became available. Excitement to not knowing….to still wondering. Thank goodness I got insurance coverage this year. Absolutely hate this stuff lolJanuary 29, 2015 at 3:43 pm #4096939
I thought you don’t accrue interest until after tax deadline in April.January 29, 2015 at 3:43 pm #4096938
Could be a minimum of 4 days/maximum of 21January 29, 2015 at 3:41 pm #4096935
@jasvan She did say it is possible it could release before then but according to the training she received regarding this it more than likely will not. Being the first year though anything is possible she said. The IRS was aware this was going to happen. She had training for this situation 2 weeks ago. She will be monitoring my case and if anything new happens she will phone me and I will share my info.January 29, 2015 at 3:41 pm #4096934
@widget: Thanks! I know we all would appreciate it.
@jasvan: I think we could still see a ddd tomorrow or next week because of the IRS manual saying 4 business days. I still have a glimmer of hope.January 29, 2015 at 3:36 pm #4096933
@widget yes thank you for sharing. I must say my refund excitement is now as deflated as a New England Patriots football though now. It sounds on target. Because after 2/16 there would be accrued interest the IRS would have to pay. Just wondering though did they say it might release before then?January 29, 2015 at 3:35 pm #4096932
@abbey I will definitely post if I hear more info. I surely hope it comes sooner but i know now it may be a couple more weeks.January 29, 2015 at 3:35 pm #4096929
That sounds like a ‘standard’ answer, like the 21 day thing. It could take that long but probably won’t. Hopefully. I’m still holding out hope for tomorrow!!!!January 29, 2015 at 3:31 pm #4096923
@widget Thanks so much for informing us. I think this is 100% on the money. I just hope now we get our refund ASAP.January 29, 2015 at 3:19 pm #4096912
I would like to share the info I have received. On Tuesday when I saw this on my transcripts i phoned the taxpayer advocate line. They put in a referral for me to receive a call from and actual advocate located in my state. The rep I spoke to seemed new and she was not supposed to refer me yet as the 21 days haven’t passed. She did though and yesterday I received a call from my advocate. This is most definitely due to the ACA penalty. The date of 2-16-15 on my transcripts indicates the day the hold will systemically release and the ACA penalty credited to the correct IRS/treasury account. This action could take place sooner. Being the first year for this it is still new and even they are still learning. There is no audit, manual review or any other action except for the penalty to apply correctly. I have her direct number and I will continue to stay in touch with her. The 16th is the 21st day since the date of processing and I’m sure that is why it is there. Basically the 16th is the final date that this will be released unless there are other issues that need corrected.January 29, 2015 at 2:57 pm #4096878
Found this on Facebook as well:
I have been researching this 876/570 code for a few days now and this is what I believe. Even though 570 is technically a “freeze code” in this instance it was just IRS’s way of flagging the refund to deduct the healthcare care penalty. Now there has been chatter of this 570 code will be “lifted” tonight at 6, just in time for direct deposit. I believe this is untrue. If you are able to access your transcript you will see your refund (credit amount) on the top. I don’t think typical IRS coding rules apply here. Keep in mind, this is the new healthcare penalty processing and is new to the IRS and I think sticking these codes on top of them is the only way the IRS can pick them up. I also think because of these codes we are not seeing movement on WMR. I think anyone with a 20150402 cycle should expect their refund tomorrow. Let’s hope.January 29, 2015 at 2:50 pm #4096865
That code if it expires on 2/16/2015 is exactly 21 days from the date our returns began POSTING…not accepted. 20150402i is 1/26/2015…which is what the IRS will go by…not when our returns are accepted. So maybe…..but I say no because after 2/16/2015 our refunds start accruing interest that IRS will have to pay. Which means they pay more than our actual refunds are. I don’t think it’s accurate and we should see our refunds before then. But yes it’s possible. That would be the latest.January 29, 2015 at 2:41 pm #4096857
Oops….I meant yes for A only hahaha….my bad!January 29, 2015 at 2:40 pm #4096855
Omg Abbey I was just going to repost that! Great minds think alike. I am not sure 2/16/2015 are they saying two days from that date or two days from our transcripts being posted? Where was this found in the Manuel, it’s just nonspecific and also the penalty is not an offsetJanuary 29, 2015 at 2:39 pm #4096854
We’ve heard a bunch of conflicting info but MOST of it points to the code dropping off tonight, thats the first time I’ve seen anyone say that date. Thats also past 21 days for most of us. I just don’t see it happening.January 29, 2015 at 2:37 pm #4096852
Got that from the homepage not from me fyiJanuary 29, 2015 at 2:35 pm #4096850
TO THOSE WITH CODES 570/896
As you’ve probably figured out, this means your refund is being held to pay for an offset.
The GOOD news, is more than likely you are not being audited (other codes would show) and THE HOLD WILL EXPIRE IN 2 CYCLES (02/16/2015)
This is from the irs manual.
….opinions???January 29, 2015 at 2:25 pm #4096835
@whathappened – the amount for healthcare – suvey
A-yes, already deducted
B-shows 896 with penalty amount, and no, refund amount shows after this is taken out
My theory, the amount show on transcript should show what you are getting back after penalty was applied, it was already subtracted when doing the taxes. cycle 20150402January 29, 2015 at 2:15 pm #4096824
It sounds like we really have nothing to worry about and that at least some of us should see a change tomorrow.January 29, 2015 at 2:12 pm #4096821
@whathappened: i still stand by what you said as well.
I called before I came on here and looking at other sites. I waited for almost an hour….ugh….i was told that i have nothing to worry about and they gave me the 21 day spill. I have no idea what that means for us lol but that is the answer i got from them.January 29, 2015 at 2:08 pm #4096817
Okay I have read every forum I can find this morning, and have found a pattern.
First of there is a small group of people who have 570 and not the 896, and they were just confused, so their info doesn’t help us.
Second there is another small group of the 896/570’s that are reporting their refund amount on their transcript shows their full refund amount before the penalty was deducted, and the ones in that group that called the IRS, are being told they have other issues.
That puts the rest in a third group. The ones who have 570/896, and their transcripts reflect the amount already deducted. These ones that have called are reporting that there is no issue, and not to worry about it.
This is what I stated I found the other night. For anyone with the 896/570, and you don’t have any other tax issues, offsets, pending credits, etc., the 570 is supposed to drop off on the 4 business day, and I still stand by that.January 29, 2015 at 2:05 pm #4096813
Got this from TT answer xchange:
Another comment from FB page “ChuckandHeather Hodge I called 2 different IRS people. First guy said that I would receive it on Friday according to my cycle date but he couldn’t really answer the 570 freeze thing. The second lady, said that it was a freeze because of the health care penalty, and it would take 4 business days to clear so the money would be released on the next batch which is next Wednesday. If it comes Friday, Hell Yes but it will probably be next week and she sounded more competent than the first guy.” So in this case 4 days from when you were able to access the transcripts. I know some people accessed it on Monday, there is not date marked of when transcript was created, the only date I see changed to todays date. I didn’t check my transcripts till Tuesday but they may have been available Monday, so 4 days from Monday is 1/30 DDD which aligns with my cycle number. If it’s counting from Tuesday then probably won’t get it till 2/2 DDD.January 29, 2015 at 2:02 pm #4096810
A. Does your transcript reflect your refund amount, with the penalty already deducted?
B. Does your transcript show the 896 with your penalty amount, however the refund amount is still in full, without the penalty being deducted yet?
C. Do you have account transcripts, return transcripts, or both?
C. BothJanuary 29, 2015 at 2:00 pm #4096808
One others interesting thing about 2/16….we all began officially processing 20150402 Monday…1/26/2015…..21days from there is 2/16/2015…..look at your transcripts……it has a place on one of them for interest accrued….and 2/16 beside it with 0’s. If they don’t have it done by then the IRS will have to pay interest on literally millions of dollars. So I don’t doubt that they want to expedite this. Just wish we had received some form of notice that this could happen and that maybe we shouldn’t be alarmed about it.January 29, 2015 at 1:55 pm #4096803
I have all my transcripts and it reflects the total refund with the penalty deducted.January 29, 2015 at 1:54 pm #4096802
Yes, I have that a minus sign equals a credit amount. The amount next to it is the refund amount with the penalty already taken out.January 29, 2015 at 1:54 pm #4096801
So no go on the call.. Ugh gave me the 21 day spiel and not to worry but no solid info. Wouldn’t even look up my info. SmhJanuary 29, 2015 at 1:52 pm #4096799
I can see all my transcripts and the 896 has the amount of the penalty but the refund amount already reflects it as taken out. Does that make sense?January 29, 2015 at 1:52 pm #4096798
A. Does your transcript reflect your refund amount, with the penalty already deducted?
B. Does your transcript show the 896 with your penalty amount, however the refund amount is still in full, without the penalty being deducted yet? Yes
C. Do you have account transcripts, return transcripts, or both? Both