If you’ve been checking your IRS tax transcript and noticed Tax Transcript Code 570 – Additional Account Action Pending, you may be wondering what it means and how it affects your tax refund. This code can cause delays in processing and issuing refunds, so understanding its significance is essential for taxpayers.
What Does Tax Transcript Code 570 Mean?
Tax Transcript Code 570 indicates that the IRS has placed a temporary hold on your tax return due to additional review or pending action. This does not necessarily mean that there is a problem with your return, but rather that the IRS needs more time to verify certain details before processing your refund. The reason for the hold can vary based on individual circumstances.
Why Would a Tax Transcript Have Code 570?
Several reasons may cause a tax transcript to receive a Code 570, including:
- Income Verification: The IRS is cross-checking reported income with employer-reported W-2s or 1099s.
- Credit or Deduction Review: If you claimed certain credits like the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC), the IRS may conduct additional verification.
- Identity Verification: The IRS may be ensuring that the return was filed by the correct taxpayer and not due to identity theft.
- Offsets for Debts: If you owe past-due federal or state taxes, child support, or other government debts, the IRS may be reviewing potential offsets before issuing a refund.
- Random Audits or Compliance Reviews: Some returns are randomly selected for additional review to ensure accuracy and compliance with tax laws.
How Will Tax Transcript Code 570 Affect My Tax Refund?
If your tax return has been assigned Code 570, your refund will be delayed until the IRS completes its review. The IRS may take the following actions depending on the reason for the hold:
- If no issues are found, the IRS will automatically release the hold and issue your refund.
- If further information is needed, you may receive an IRS notice requesting documentation or clarification.
- If adjustments are required, the IRS may issue a Code 971 (Notice Issued) or Code 571 (Resolved Additional Account Action) on your transcript once the issue is addressed.
How Long Will the Hold Last?
The duration of the 570 hold varies depending on the complexity of the review. Some taxpayers see their issue resolved within a couple of weeks, while others may experience delays of several weeks or even months. Typically, an additional date listed next to Code 570 on your transcript gives an estimated resolution time frame.
What Should You Do If You See Code 570 on Your Transcript?
- Check Your Transcript for Updates – Look for additional codes like 971 (Notice Issued), 571 (Resolved), or 846 (Refund Issued) to understand the progress.
- Watch Your Mail – If the IRS needs more information, they will send a notice explaining the next steps.
- Be Patient – If no action is required on your part, the IRS will automatically process the return once verification is complete.
- Call the IRS (If Necessary) – If the hold remains for an extended period beyond the listed date, contact the IRS at 1-800-829-1040 for clarification.
Conclusion
Tax Transcript Code 570 is a common IRS processing code that indicates a temporary hold on your tax return due to additional verification. While it can cause delays in receiving your refund, it does not necessarily mean an issue with your return. Monitoring your transcript, responding to IRS notices promptly, and staying informed about your tax situation can help ensure a smoother resolution.
If you are experiencing extended delays, consider reaching out to the IRS or consulting a tax professional for further guidance.
