How the IRS Uses Transcript Codes to Flag, Freeze, and Secure Refunds in 2026

Every tax season, the IRS enhances security systems to protect taxpayers from refund fraud, identity theft, and improper claims. For 2026, new and updated refund protection initiatives mean transcript codes will play an even more important role in refund tracking.
If you monitor your IRS Account Transcript, these codes tell you exactly when your refund is under review, when identity checks are triggered, and when your refund is released.

This guide explains the key IRS transcript codes tied to refund protection initiatives—and what each one means for your refund timeline.

Why the IRS Is Expanding Refund Protection in 2026

The IRS continues to strengthen refund fraud prevention systems due to:

• Higher refund amounts from new credits and deductions
• Increased identity theft attempts
• New artificial intelligence screening tools
• Delays in wage-reporting verification
• Growing dependence on online accounts

As a result, more returns undergo automated checks before refunds are approved. Transcript codes now track these expanded protection steps more transparently.

The Most Important IRS Security and Refund Protection Codes

Below are the transcript codes most closely connected to 2026 refund protection programs. These codes indicate identity verification checks, fraud holds, dependent claims verification, and refund freezes.

TC 570 – Additional Account Action Pending

The standard refund hold.

TC 570 remains the most common protection-related code. It means:

• The refund is temporarily paused
• The IRS needs to verify income, withholding, dependents, or identity
• No refund can be issued until the issue is reviewed

TC 570 does not automatically mean fraud. It is part of routine refund screening under the IRS’s enhanced protection filters.

What clears TC 570:

• TC 571 – Hold removed
• TC 572 – Adjustment completed

TC 810 – Refund Freeze (Identity or Fraud Concern)

The most serious refund protection code.

TC 810 is used when:

• The IRS suspects identity theft
• A fraud filter was triggered
• Return information conflicts with IRS records
• The taxpayer must complete identity verification

TC 810 freezes the refund until the taxpayer verifies identity or the IRS resolves the concern.

What clears TC 810:

• TC 811 – Refund freeze released

If you see TC 810, action is required. The IRS may send Letter 5071C, 4883C, or 5747C for identity verification.

TC 971 – Notice Issued

TC 971 appears when the IRS sends:

• Identity verification letters
• Dependency or credit verification letters
• Income or withholding discrepancy notices
• Fraud-prevention alert letters

This code is now used more frequently due to expanded verification programs.

Paired with:

• A notice date
• A specific letter type (sometimes shown on transcript or Online Account)

TC 976 – Amended Return Filed (Or Fraud Filter Duplicate)

While TC 976 normally indicates an amended return, the IRS also uses it when:

• A suspected fraudulent duplicate return is filed
• The IRS is comparing two returns with the same Social Security Number

TC 976 may trigger a fraud review before refunds are released.

TC 420 – Return Under Examination

TC 420 signals that a return has been selected for examination due to:

• Fraud indicators
• Incorrect refundable credit claims
• Conflicting dependent claims
• Questionable income reporting

It is part of the IRS’s expanded refund protection initiative for returns showing high-risk patterns.

What follows:

• IRS audit letters
• Return delays
• Potential adjustment codes (290 or 291)

TC 424 – Examination Request Indicator

This code indicates:

• The IRS is preparing an examination
• The return is being reviewed for audit selection criteria

A TC 424 does not guarantee an audit, but it means the return is under deeper inspection.

TC 899 – Return Capture Protection Indicator

A newer security code used to:

• Flag returns protected by identity verification programs
• Block fraudsters from altering or hijacking the taxpayer’s account

TC 899 may appear for taxpayers with an IP PIN or who recently confirmed identity.

TC 570 + TC 971 Combination

This pairing is becoming more common in 2026.

It typically means:

• A refund hold (TC 570)
• Paired with a notice or verification requirement (TC 971)

Many protection filters automatically generate TC 971 before the IRS issues a letter.

TC 826 – Refund Offset (Debt-Related Protection)

While not strictly a fraud code, TC 826 is part of refund protection because:

• Refunds are intercepted to cover federal or state debts
• Prevents the release of refunds to the wrong party
• Protects the IRS and taxpayer accounts from unauthorized payouts

How Refund Protection Codes Affect Your Refund Timeline

Because the IRS expands security filters every year, taxpayers will see more temporary delays. Here is how the timeline typically works:

1. Return filed

Transcript shows TC 150.

2. Automated security checks

Can trigger TC 570, TC 810, TC 971, or TC 976.

3. Hold or freeze resolution

Codes 571, 572, or 811 appear.

4. Refund approval

TC 846 – Refund Issued posts with the payment date.

5. Refund sent

Where’s My Refund updates to show deposit or check status.

Understanding these codes helps taxpayers know whether their refund is simply paused for routine screening or frozen for identity verification.

How to Protect Your Refund in 2026

To avoid longer delays and fraud-related holds:

• Get an IP PIN (Identity Protection PIN)
• File electronically
• Use direct deposit
• Ensure W-2s and income records match exactly
• Avoid filing extremely early before employer data reaches the IRS
• Keep your IRS Online Account secure
• Check transcripts weekly for updates

These steps dramatically reduce the chance of triggering TC 810 or extended TC 570 reviews.

Refund protection initiatives continue to expand, and IRS transcript codes now play a critical role in showing taxpayers exactly what is happening behind the scenes. Codes like TC 570, TC 810, TC 971, TC 976, TC 420, and TC 424 are now the frontline indicators of identity checks, verification holds, and fraud-prevention reviews.

Understanding these codes helps taxpayers:

• Track their refund accurately
• Identify potential identity theft
• Respond quickly to IRS notices
• Avoid unnecessary delays
• Stay informed throughout the 2026 tax season

Your IRS Account Transcript remains the most powerful tool for decoding refund issues long before Where’s My Refund updates.