When taxpayers review a tax account transcript and notice IRS Transcript Code 570, it often raises immediate concerns about refund status and the progress of their tax return. This transaction code indicates that the IRS has applied a temporary hold for pending additional account action, which may delay the release of a refund. While such a code can be unsettling, it is generally a procedural step in the IRS system rather than an indication of serious tax issues.
The IRS uses standardized transaction codes on every tax account to track processing stages, adjustments, and notices. When Code 570 appears, it reflects that further review is required before funds can be released. This may involve verifying income details, evaluating tax credits such as the child or earned tax credit, or checking the accuracy of reported deductions. The transcript may also display related codes that offer crucial details about the account and clarify the reasons behind specific actions.
You can respond appropriately by understanding what Code 570 means, why it appears, and how it may affect your tax return. This guide will explain common reasons for the hold, outline what steps you can take, and describe how the IRS resolves these actions so taxpayers can be prepared for possible delays and know when to request additional information or assistance.
IRS Transcript Code 570 appears on a tax account transcript with the description “Additional Account Action Pending.” This code is part of the IRS transaction codes system, which is designed to record every action connected with a tax return. When taxpayers see this entry, it indicates that their refund has been temporarily placed on hold until the IRS completes a review or requires further verification. While the appearance of this code may cause concern, it generally reflects a routine step in processing a return rather than an audit or denial.
The IRS has various transaction codes to record every account movement, from wage reporting checks to amended return reviews. Code 570, in particular, serves as a hard freeze, which prevents the system from releasing a refund or applying overpayment credits to another year’s tax liability. It may also precede the posting of additional tax, penalties, or interest assessed on the account. According to the IRS Master File Codes Documentation, this code represents a pending action that must be cleared before funds are released. Understanding this entry helps taxpayers identify the reason for refund delays and prepare to verify information or respond to notices to move their account forward.
The IRS transcript system gives taxpayers a detailed view of their tax account. A tax transcript records all significant actions related to a tax return, including payments, credits, penalties, and interest assessed. Each entry on the transcript is marked by a transaction code, which explains what action has been applied to the account. By reviewing these codes, taxpayers can understand the current status of their refund, whether additional tax has been posted, or if a hold, such as Code 570, has delayed processing.
Transcripts can be requested in several ways, with the fastest option being online. Taxpayers can create or log into their IRS account and access tax records directly. Full instructions are provided at How to Get Your Tax Transcript – IRS.gov. Using this resource ensures you have the most accurate and up-to-date information regarding your account.
When Code 570 appears on a tax account transcript, the IRS has initiated a hold on the account until it completes further review. This code is generally applied when the IRS needs to verify key information before releasing a refund or adjusting the balance. While the appearance of this transaction code may cause stress, it often correlates with common processing issues that many taxpayers encounter during each filing season.
Understanding these common reasons can help taxpayers prepare the proper documents and respond promptly to IRS requests. In most cases, Code 570 represents a temporary step to verify income, review credits, or address payment inconsistencies. By recognizing that these holds are part of routine processing, taxpayers can clearly approach the situation and take appropriate steps to move their tax account forward without delay.
IRS Transcript Code 570 rarely appears alone on a tax account transcript. It is usually followed or preceded by other transaction codes that explain the IRS's action and what taxpayers can expect next. Understanding these related codes is essential because they provide context for refund delays, tax penalties, or adjustments that may affect the account balance.
When Code 570 appears, it is common to see Code 971 later. This entry confirms that the IRS has mailed a notice explaining why the refund was placed on hold. The notice may request additional information, verification of income, or confirmation of claimed credits. Receiving this notice signals that the taxpayer should carefully review the instructions and respond by the date provided.
Code 571 or 572 shows that the pending action represented by Code 570 has been resolved. These entries indicate that the account has been cleared for further processing. Taxpayers may see adjustments posted, including additional tax, overpayment applied, or verified credits.
This is the code that most taxpayers want to see after a delay. Code 846 confirms that the refund has been released for direct deposit or as a paper verification. Its appearance means that the hold created by Code 570 no longer applies.
In some cases, the IRS determines that additional tax is owed. Code 290 reflects a deficiency assessment; the transcript will show the due amount and any interest or penalties assessed. Taxpayers should review this entry carefully to confirm accuracy or request clarification from the IRS directly.
By learning how Code 570 connects with other transaction codes, taxpayers can better interpret the complete picture of their account transcript. These entries explain whether the hold is temporary, resolved, or leading to a balance adjustment.
The time that IRS Transcript Code 570 remains on a tax account transcript depends on the reason for the hold and how quickly the taxpayer provides any required documentation. Although this code indicates a delay, the duration differs for every case. Some situations resolve in weeks, while others extend for several months, depending on the complexity of the tax issues.
Identity verification timeframe: Many taxpayers experience a hold of 45 to 120 days while the IRS confirms personal details and reviews security information. The process may require a response to a notice or submission of documents.
General review timeframe: Standard account reviews connected to income mismatches, deductions, or tax credits usually take 60 to 90 days. The IRS uses this period to double-check reported income and compare it with employer forms.
Complex case timeframe: The timeframe for more involved matters, such as amended returns, deficiency assessments, or missing forms, may extend to 180 days or longer.
IRS workload factor: The number of returns processed during the filing season can extend the hold length.
Taxpayer response factor: Delays often depend on how quickly the taxpayer can verify identity, provide the requested forms, or pay any outstanding balance.
In most cases, Code 570 reflects a temporary freeze that clears once the required action is complete, allowing the tax account to proceed toward refund release or adjustment.
When IRS Transcript Code 570 appears on a tax account transcript, acting carefully and avoiding panic is essential. This transaction code indicates that the IRS has paused the release of a refund or the application of an overpayment until additional account action is completed. By following a structured approach, taxpayers can reduce unnecessary delay and ensure that the account moves forward as smoothly as possible.
By following these steps, taxpayers can demonstrate compliance, avoid unnecessary penalties, and reduce the chance of extended review. The key is to respond quickly, verify all details, and maintain accurate records. Code 570 is not necessarily a significant problem, but ignoring it can lead to additional taxes, interest assessed, or longer delays. Taking proactive action is the most effective way to move a tax return and account transcript closer to final resolution and refund release.
When IRS Transcript Code 570 appears, it often signals that a tax return has been selected for additional review. These reviews are a routine part of IRS procedures and are generally. This process is intended to confirm that taxpayers' information is accurate and that any credits, deductions, or income reporting comply with applicable requirements. Although the presence of Code 570 causes a delay in refund release, it does not automatically indicate wrongdoing.
These review procedures are intended to protect the accuracy of the tax system and maintain security against fraudulent filings. By supplying requested documents promptly and ensuring all entries on the return are accurate, taxpayers can help resolve Code 570 more quickly. While such reviews can be inconvenient, they are essential in maintaining confidence in IRS processing and ensuring refunds are issued correctly.
Accessing an IRS transcript is one of the most effective ways to understand why Code 570 has appeared on a tax account transcript. A transcript allows taxpayers to review transaction codes, confirm whether an amended return has been processed, and verify if credits or payments have been correctly applied. Since transcript requests are common during periods of refund delay, the IRS provides several methods to obtain them.
By choosing the best method, taxpayers can quickly access the key information required to resolve Code 570 and confirm that their tax return and account are being processed correctly. A timely review of these records is essential to avoid further delays.
When Code 570 is cleared from a tax account transcript, the IRS records the resolution using additional transaction codes. These codes explain whether the account has been adjusted, if a refund has been approved, or if additional tax has been assessed. Understanding these follow-up entries helps taxpayers know the IRS's actions and what to expect next.
The most common outcome after a 570 freeze is the posting of Code 571 or 572. These entries confirm that the pending issue has been addressed and the account is progressing. This may involve verifying income, establishing eligibility for tax credits, or applying corrections to deductions. Once these updates are completed, the hold no longer blocks tax return processing.
If the resolution determines that the taxpayer is entitled to a refund, Code 846 will appear. This entry shows the amount released and the payment method, whether through direct deposit or a paper check. Most taxpayers see this code shortly after the hold has been lifted.
In some cases, the review identifies a discrepancy requiring a balance adjustment. Code 290 reflects a deficiency assessment or additional tax; the transcript may also show penalties or interest assessed. Taxpayers should review this entry carefully and contact the IRS if the adjustment is not applicable.
By reading these resolution codes, taxpayers can confirm whether the delay led to a refund, a corrected balance, or an obligation to pay more. Each outcome clarifies the account's status.
Taxpayers can take practical steps to reduce the chance of seeing Code 570 or other delays appear on a tax account transcript. Preventing these issues requires accuracy, timely filing, and careful recordkeeping. While no method guarantees complete avoidance, adopting good habits generally helps minimize the risk of processing interruptions.
File accurate returns: Please carefully review each line on the tax return before submission. Ensure that wages, deductions, and tax credits are reported correctly. Errors or mismatches often lead to additional review, processing delays or applying a tax penalty.
Protect your identity: Taxpayers should consider using an Identity Protection PIN when filing. This added layer of security helps reduce the risk of fraudulent returns being submitted in their name, which is one of the common reasons a refund is delayed.
Keep records organized: Maintain all forms, notices, and supporting documents. Clear records make it easier to verify income or deductions if the IRS requests additional information. They also help with preparing an amended return if adjustments become necessary.
Confirm personal information: Make sure the street address, date of birth, and other personal details are correct. Incorrect information can cause mail delays, extending the time required to resolve a hold.
Pay and respond on time: Taxpayers should submit payments promptly and answer any IRS requests without delay. Doing so helps avoid penalties, interest assessed, or further action.
By following these practices, taxpayers can reduce the likelihood of account transcript problems and improve the chances of smooth processing in the following year. Taking preventative measures provides real benefits by limiting disruption and supporting timely refunds.
Many taxpayers mistakenly assume that IRS Transcript Code 570 automatically signals an audit. This is not correct. Code 570 indicates that the IRS has temporarily held the account while additional review is conducted. Unlike an audit, this hold does not involve an extensive examination. It is not an examination of financial records, but rather a focused check on specific entries in the tax return or account transcript.
Another common belief is that the presence of Code 570 means a refund is lost. Refunds are usually only delayed while the IRS verifies information such as income, deductions, or eligibility for tax credits. Once the review is complete and any additional documentation has been processed, the refund can be released, often along with interest if the delay exceeds the standard timeframe.
Finally, some taxpayers assume they cannot file the following year’s return if Code 570 remains unresolved. This is incorrect, as the IRS handles each tax year separately. While unresolved issues may affect refund processing across multiple years, taxpayers must still file their returns on time to avoid penalties. Understanding these points helps reduce unnecessary stress and supports informed decision-making.
While many cases involving IRS Transcript Code 570 resolve once taxpayers provide the requested information, there are situations where professional help is necessary. Tax professionals, including enrolled agents, tax attorneys, or certified public accountants, can assist when problems extend beyond routine account review. Their guidance ensures taxpayers understand notices, respond accurately, and avoid unnecessary penalties.
Professional support can provide significant benefits by ensuring that all responses are accurate and applicable. Experts can also contact the IRS directly on behalf of taxpayers, which often leads to faster clarification and resolution. Seeking timely assistance is a way to avoid a tax penalty and a practical step to maintain compliance and restore confidence in account management.
The length of time varies depending on the reason for the hold. Identity verification may take 45 to 120 days, while routine reviews often last 60 to 90 days. Complex cases involving amended returns or deficiency assessments can extend to 180 days. Promptly submitting the requested documents usually shortens the delay and allows the account transcript to update faster.
Code 570 does not mean a tax return has been rejected. Instead, it indicates a temporary hold on the refund or account adjustment until the IRS can complete a review. A rejected return generally appears before acceptance, requiring correction and resubmission. In contrast, Code 570 applies after the original return is accepted and reflects pending additional account action.
When Code 570 appears with zero, the IRS usually conducts a general review and has not identified a specific balance adjustment. When it appears with a dollar amount, it indicates that additional tax, penalties, or interest assessed may be pending. Both versions require resolution before a refund is released or the account transcript is updated with final entries.
Yes, taxpayers can continue to make estimated tax payments or submit other required amounts while Code 570 is active. The hold only applies to refund processing or credit transfers within the tax account. Making timely payments helps avoid interest assessed or penalties and ensures compliance with filing obligations. The IRS still records these payments during any proceeding or review.
Taxpayers must file their return yearly, even if a prior year's account shows Code 570. Each tax year is processed separately, although unresolved issues can affect refunds across multiple years. Filing on time prevents penalties and keeps accounts current. Submitting the following year’s return ensures compliance while the IRS reviews the pending action.
Sometimes, the IRS pays interest on refunds delayed beyond the standard processing timeframe. However, this generally applies only if the delay is caused by the IRS, not by missing documents or a lack of taxpayer response. Interest assessed is added automatically once eligibility is met, and it will appear as a transaction code on the tax account transcript.
Schedule your free, confidential tax relief review today.
Copyright © 2025 Get Tax Relief Now
