Once you’ve filed your tax return, you’ll want to know when it’s going to be processed and finalized, and most of all, when you’re going to receive your refund.
If you’re tracking this by looking at your tax transcript, you may have seen the tax code 570 and be wondering what this means.
Unfortunately, IRS tax code 570 means there is a delay in processing your tax return. And annoyingly, there’s no way of finding out the reason for the delay until the IRS is ready to tell you.
However, there is also no need to worry.
Oftentimes the delay is simply resolved and your refund is processed as expected – albeit later than you’d hoped. Other times you may need to provide a little more information to the IRS. While there is nothing you can really do but wait, we know that you still want to understand what’s happening. So keep reading to find out more about what tax code 570 means on your IRS transcript, and what to do if you see this code.
What is IRS code 570?
IRS code 570 is an internal code used by the IRS to indicate that there is a delay in your tax return being processed.
It’s meant as an internal code rather than a public-facing one, which is why there is so little information about it on the IRS website, and why it also doesn’t appear anywhere else – such as on the “Where’s My Refund?” tool, which is the best and recommended way to track the progress of your refund.
Essentially, tax code 570 means an additional account action is pending before the IRS can process your tax return and issue your refund. Or in simpler terms, it means that they have paused the processing of your return because they need to examine something more closely.
Frustratingly, they don’t (and won’t) give any indication of why they are pausing it, and there is no way to find out. You simply have to wait.
However, it is not necessarily anything to worry about. Once the IRS has conducted its review, it will either continue to process your return as normal, or contact you to request additional information or tell you what you need to do.
Reasons why your transcript might show tax code 570
IRS code 570 can mean different things in different cases, which is why the IRS isn’t more specific.
However, the most common reasons for a 570 tax code are as follows:
- Further verification of your identity is needed
- There’s a discrepancy between the wages reported by your employer and the amounts listed on your tax return
- There are missing income statements or other wage verification issues
- The tax credits you reported (such as Earned Income Tax Credit (EITC), American Opportunity Tax Credit, and Child Tax Credit) don’t match what the IRS has on record
- The stimulus payments you reported don’t match what the IRS has on record
- You filed for an Injured Spouse Allocation
- You filed your tax return early
That said, the IRS has issued statements recommending that taxpayers don’t try to draw their own conclusions on why their transcript shows tax code 570, as reported by Forbes, explaining that:
“Transaction Codes are used internally by the IRS […]. While they are reflected on transcripts, they are not reflected on most public-facing documents or tools like ‘Where’s My Refund’ because they are difficult to interpret and can have a different meaning depending on the case and associated codes and files. [The] best way for taxpayers to check the status of their refund is by going to ‘Where’s My Refund’.”
What does IRS code 570 with future date mean?
If there is a future date listed alongside code 570 on your tax transcript, this usually indicates the approximate date that the IRS plans to revisit your account.
It does not reflect the date you can expect to receive your refund, and likewise it’s not the latest you can expect your tax return to be processed.
In other words, there is no guarantee as to exactly when, or how long, the processing will take. It’s generally best to assume this will be the earliest date you can expect your tax return to be processed.
What does the amount next to code 570 mean?
If the figure listed alongside the code 570 reads $0, this means that the hold (or delay) is non-monetary related.
If a positive number is listed, this usually means there’s an updated tax liability, or this is the portion of your refund that is being held or reviewed while the IRS conducts its checks into the relevant discrepancy.
But again, until (or if) you hear from the IRS with exact details on what they are checking, it is best to try not to read too much into anything.
What to do when tax code 570 is showing on your transcript?
As hard as it is, the best thing to do when your transcript shows code 570, is nothing.
Calling or visiting the IRS office won’t help speed the process up, and they won’t be able to provide you with any further information until they start to review your case.
Once they have started to review your case, they will either:
- Contact you to explain why your return is under review, request the necessary additional information, and explain what you need to do. In this case, an additional tax code 971 will be added directly after code 570 on your transcript.
- Automatically release the hold and continue to process your tax return as normal. In this case, the code will change to 571 on your transcript, your tax return will be finalized, and your refund will be processed and issued accordingly (if applicable). You will not receive any type of notification in this instance.
If you have still not heard anything from the IRS beyond the future date listed alongside code 540, you could consider contacting the IRS directly to see if they are able to provide you with any more details or a timeline.
Equally, if you’re concerned that there may be an error on your tax return, it could be worth reviewing your return to double-check for any possible errors or discrepancies before the IRS contacts you, to minimize any potential further delays. However, if you do find any errors, DON’T submit an amended return until you have heard from the IRS, as this may be the cause of the delay and they may simply correct it themselves without you needing to file an amended return.
And finally, don’t be afraid to seek professional help if you need it. If the IRS contacts you requesting additional information that seems complex, has you worried, or if you’re unsure how to proceed, speaking with independent tax experts can be very beneficial.
Here at Tax Relief Helpers we have a large team of tax experts that includes tax attorneys, CPAs, and enrolled agents, meaning we can offer you expert advice and guidance, and represent you in front of the IRS if needed.
Contact Tax Relief HelpersHow long does code 570 usually take to be resolved?
The time it takes for IRS code 570 to be resolved can vary, depending on the complexity of the issue as well as the current workload of the IRS.
Anything from 45 days to 120 days is the most common, but once again, there is no guarantee.
Patience is key, but staying informed and proactive can help ensure that any necessary actions on your part are completed promptly, to avoid any further unnecessary delays.
How to check the status of your tax refund and code 570
The best way to check the status of your tax refund while your return is under review, is via the “Where’s My Refund” tool on the IRS website. This tool provides updates on the status of your refund and indicates if or when there are any additional actions you need to take.
If you are waiting on a refund from an amended return, bear in mind that there is a different tool on the IRS website, called “Where’s My Amended Return”.
Additionally, you can keep an eye on your IRS transcript, via your account on IRS.gov, which will be updated with new codes as and when the processing of your tax return progresses.
Seeking professional independent tax advice
If your tax return has been delayed by the IRS due to a complex error or discrepancy, or if you’re facing tax debt or another tax-related issue, remember that professional help is available.
At Tax Relief Helpers, our experienced team is ready to assist you in navigating the complexities of IRS processes and paperwork, and resolving your tax issues effectively.
So if you think you need help resolving your tax issues with the IRS, don’t hesitate to contact us to find out how we can help you.