There is a moment in the tax refund process that terrifies taxpayers: when your IRS transcript suddenly shows TC 971 – Notice Issued.
People immediately panic — but what matters is which notice you received.

Because TC 971 is not the problem — the attached notice code is the real story.

Let’s break down what this means, what letters are most common, and exactly what to do next.

What TC 971 Really Means

If your transcript shows:

TC 971 – Notice Issued

It means the IRS physically or digitally generated a notice related to your return.

This code does NOT tell you:

• what the notice says
• what the IRS is questioning
• whether your refund is being delayed permanently
• whether you’re under review or audit

You have to look at the corresponding notice type or wait for the physical letter.

But we already know the two most common refund-delaying notices:

1. CP05 — The Income Verification Freeze

If you get a CP05 notice, the IRS is verifying:

• wages
• withholding
• income as reported by your employer
• credits claimed

The key thing:
You usually are NOT required to send anything immediately.

But here’s the catch:

CP05 automatically holds your refund for up to 60 days.

Meaning:

Your return is frozen — not because of an error — but because the IRS wants to be certain your reported income matches employer submissions.

If CP05 is your letter:

What to Do Next

• Do not resend your W-2 — unless specifically requested
• Do not panic — this is a common verification hold
• Monitor your transcript for TC 971 follow-up codes or additional requests
• Respond immediately if the IRS later asks for documentation

After verification, you’ll often see:

TC 571 – Hold Lifted
or
TC 846 – Refund Issued

2. 5071C or 4883C — The Identity Verification Barrier

These notices mean one thing:

The IRS is not convinced you are you.

The IRS thinks there may be:

• identity fraud
• a mismatched SSN
• a suspicious filing pattern
• a filing from a different address than last year

Unlike CP05, this one DOES require action.

What to Do If You Get a 5071C or 4883C

You must verify your identity by one of the following:

• Online via the ID verification portal
• By phone
• By mail
• In-person at an IRS office

Your refund will NOT move forward until this is completed.

If verification succeeds, you’ll see:

TC 571 – Hold Released
followed (usually 3–7 days later) by
TC 846 – Refund Issued

The Third Scenario: “Generic Notice” (Not a Delay)

Sometimes TC 971 refers to:

• a confirmation notice
• an informational letter
• a general correspondence
• a non-refund-related message

These do NOT impact your refund.

How do you tell the difference?

Check for TC 570 or TC 971 follow-up codes.

If you have:

TC 150
TC 806
TC 766
TC 846

But NO TC 570 or TC 977 or TC 420,

Then the notice is harmless.

How Long Before the Letter Arrives?

Once TC 971 appears:

• The notice is usually mailed within 48 hours
• Delivery takes 5–10 mailing days
• Digital notices may appear in IRS Online Account sooner

Important:
If you moved and didn’t file a Form 8822 (address change), the letter may go to your previous address.

Transcript Clues: How to Tell Which Notice Is Coming

Watch for the pairing of codes:

• TC 971 + CP05 indicator → Income verification
• TC 971 + 506C / 5071C reference → Identity verification
• TC 971 + TC 570 → Refund frozen pending review
• TC 971 + TC 420 → Audit initiated
• TC 971 + TC 971 (second instance) → Follow-up notice

The transcript often reveals the nature of the notice before you even see the physical letter.

The #1 Mistake Taxpayers Make

Ignoring the notice.

Many feel overwhelmed and think:

“I’ll wait and call the IRS later.”

This is the worst possible approach.

If the IRS requires action —
and you wait —
your refund clock stops indefinitely.

Some taxpayers lose an entire refund cycle because they delayed.

The Smart Response Strategy

When you see TC 971:

1. Log into your IRS Online Account
2. Check for a digital version of the notice
3. Identify whether it is CP05 or 5071C/4883C
4. Follow instructions immediately
5. Keep proof of submission or verification
6. Track your transcript updates every 72 hours

TC 971 does not automatically equal trouble —
but it always equals attention required.

• If it’s CP05 — be patient
• If it’s 5071C — act fast
• If it’s generic — no issue
• If paired with TC 570 — refund is held
• If paired with TC 571 — refund is being released

Knowing which letter you received is the difference between waiting for weeks and solving your delay immediately.