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Transaction Code 570 and Delayed Tax Refunds

Estimated reading time: 3 minutes

UPDATED FEBRUARY 2021

Transaction Code 570

Sometimes it can seem like the tax season is moving at a slower pace than prior years. You see other people getting their tax refunds quickly, but here you sit wondering why you haven’t received your tax refund yet. Usually, around two weeks into the opening of tax season, we notice an uptick in complaints about refund timing and IRS Transaction Code 570. Taxpayers turn repeatedly to the Where’s My Refund tool on IRS.gov and repeatedly calling the IRS. They have been left staring at at generic message “….your tax return is still being processed…” or in some cases, “…there is a delay in processing your tax return…”  This leaves people with questions.

Transaction Code 570 is a freeze code.

Additional action pending – IRS INTERNAL REVENUE MANUAL (IRM)

Phone calls to the IRS don’t yield more than a scripted response that they are under review and to wait another 45-60 days. Oftentimes, they are hung up on by representatives answering the phones. This leaves people frustrated. Despite being told that the Where’s My Refund tool by the IRS is the best way to check the status of your refund, taxpayers check elsewhere for clues about why they haven’t received their refund. Are there delays? What is the delay? Why? Is there a systemic problem with the IRS this year?

The IRS WMR tool doesn’t give you finer details as to why your tax refund might be delayed and some years, it just doesn’t update with current information. In fact, the IRS doesn’t share and even denies the other way to get more info, bring in the IRS account transcript. We talk more about transcripts here, but if you already have your account transcript and see Transaction Code 570 it can leave you frustrated.

Each year, there is a group of people who report holds on refunds using TC570 and TC971 shown on their Account Transcripts. Our research shows that the these transaction codes are internal and can mean different things for individual taxpayers, but users are still trying to draw conclusions based on these transaction codes since they are very vague and nondescript. For instance, TC971 says a notice has been sent.  People are reporting they haven’t received anything in the mail and that they can’t seem to get an answer about what has been mailed when they call.

Transaction Code 971 – Notice Sent

– IRS INTERNAL REVENUE MANUAL (IRM)

We have reached out to the IRS to find out if there is some sort of systemic issue concerning people seeing the TC570 on their Account Transcripts and we get the same response, the best way to check the status is with the WMR. So for now, this is what we know about TC 570, TC971 and dates on the Account Transcripts.

Transaction Code 570 and and Transaction Code 971 The Transaction Code 570 description says “Additional account action pending.” Our research shows that the 570 transaction code and others shown on account transcripts are internal and can mean different things for individual taxpayers. 

Nonetheless, taxpayers are still trying to find a reason for tax refund delays based on these transaction codes since they are very vague and nondescript. For instance, TC971 says a notice has been sent, but our users are reporting they haven’t received anything in the mail; and that they can’t seem to get an answer about what has been mailed when they call. Again, oftentimes being hung up on my IRS representatives. See what others have reported about their TC 570 here.

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