IRS Account Transcript Code 971

IRS Account Transcript Code 971 indicates that the IRS has issued a notice to the taxpayer, such as a notice of deficiency or a collection notice. Code 971 shows up on your IRS transcript when the IRS requires more information to complete their review of your tax return and refund. This can be due to various reasons, including a mismatch with employer-reported wage income, injured spouse claims, ID verification, or reconciling tax credits (like the EITC, RRC, or CTC) claimed in your return versus what they have on record. The IRS will normally send you a notice or letter to provide more details on the issue and also advise that they have put a hold on your return processing until their further review is completed.

Code 971 is one of many codes that can show up on your IRS transcript and have various meanings. Generally, this code indicates that the IRS is reviewing your tax refund and may require more information to process it. This can be a common occurrence, especially during the busy tax season. However, this should not be a cause for alarm, and you should continue to monitor your tax refund status. Contact the IRS directly if you have any questions about your tax refund is also a good idea.

What Does IRS Account Transcript Code 971 Mean?

If you check your IRS tax transcript and see code 971 listed, it means that the IRS has contacted you about changes they will be making to your return or refund. Typically, these types of changes are to correct errors or issues. If you are concerned about these changes, it’s best to call the IRS and speak with a live agent. This will help you avoid any penalties and clear up any confusion regarding your filing status.

While a 971 code on your transcript can be alarming, it is usually nothing to worry about. The code indicates that the IRS will adjust your return or refund amount, and they will notify you of the changes. There are many different codes that can appear on your transcript, and it is important to understand what each of them means.

This can be a lengthy process and could delay your refund or tax lien release. Generally, the IRS will send a notice to the tax filer once the review is complete and let them know the results of the review.