The TC 571 Without a TC 846: The “Ghost Release” Mystery

Few transcript situations confuse taxpayers more than seeing a TC 571 (Additional Account Action Resolved) with no TC 846 (Refund Issued) afterward. The freeze is lifted, processing appears complete—yet no refund ever arrives.

This scenario is commonly referred to as the “ghost release.”

Understanding TC 571 no refund issued explains why a refund can vanish even though the IRS technically released the hold.

What TC 571 Actually Means

TC 571 indicates that a prior restriction—most often a TC 570 freeze—has been resolved.

TC 571 tells you:

• The IRS finished the review that caused the hold
• The account is no longer restricted
• Processing may continue

What TC 571 does not guarantee is that a refund will be paid to you.

Why a Refund Can Disappear After TC 571

When TC 571 posts without a following TC 846, it usually means the refund was never intended to be paid out.

Instead, the IRS applied the refund internally to satisfy another debt.

This most often happens when the taxpayer owes:

• A prior-year IRS balance
• Penalties or interest from an older return
• Certain federal obligations eligible for offset

The refund is released—but not to your bank account.

Internal Offsets vs. Refund Issuance

The IRS follows a strict priority order when a refund becomes available.

If another tax year shows a balance due:

• The refund is intercepted
• Funds are transferred internally
• No TC 846 is generated for payment

From the taxpayer’s perspective, the refund simply disappears.

The Key Code to Look For: TC 826

When this happens, the transcript usually contains the real answer lower on the page.

Look for TC 826 — Overpayment Transferred.

TC 826 shows:

• The refund amount
• The tax year it was applied to
• The date of the internal transfer

This is the smoking gun that explains the “ghost release.”

Why the IRS Does Not Always Warn You First

In many cases:

• No advance notice is required
• The offset happens automatically
• The transcript updates before any letter arrives

This is why taxpayers often discover the offset only after reviewing transcripts.

How This Appears on a Transcript Timeline

A typical sequence looks like this:

• TC 570 — Refund freeze applied
• Review or delay period
• TC 571 — Freeze resolved
• TC 826 — Overpayment transferred
• No TC 846 — No refund paid

The refund existed—but it was absorbed internally.

What Happens Next?

Once the offset occurs:

• The refund for that year is gone
• The balance due on the other year is reduced
• Processing for the current year is complete

If the offset paid the debt in full, future refunds may issue normally.

What You Should Do If You See This

You Should:

• Review the full transcript, not just the top section
• Identify which year received the offset
• Check whether any balance remains

You Should Not:

• Assume the refund is delayed
• Expect a TC 846 to appear later
• File an amended return solely due to the offset

The transaction is final unless the underlying debt is disputed.

TC 571 no refund issued is not an error—it is an accounting outcome.

It means:

• The freeze was lifted
• The refund was released
• But the money was redirected to another tax year

If you see TC 571 without TC 846, always search for TC 826. That code reveals exactly where your refund went—and why it never reached you.