IRS code 570

What is IRS Code 570?

As we mentioned, IRS Code 570 means that there is a delay in the tax filing process, for example, if you are waiting for a refund from the IRS there may be a delay and this has triggered the notification, the delay may be due to multiple factors, the best thing to do is to contact the IRS and request a status of the process.

It is important to mention that the 570 code does not mean that there is a problem with your refund, i.e., you may not need to do anything, but it does mean that the refund will take longer to be processed by the IRS.

You may also choose to hire a tax professional to review your tax return to verify that everything is in order, since usually when the IRS is asked about the status of the process, the IRS does not provide much information until the process is complete.

Reasons for TC Code 570

As we have mentioned, there are numerous reasons why you might have IRS Code TC 570 on your tax bill as a notice from the IRS. Our IRS experts have listed some of the most common reasons why US taxpayers receive a code 570 notice.

Reported tax filing mismatches.

You may receive the code 570 notice due to a mismatch in reported wages and third party income. The IRS receives all tax information from your employer and compares it to the figure included on your tax return. In the event that your tax return does not match the information provided to the IRS by your employer, the IRS will take additional time to process your return and will send you a discrepancy notice when they finish processing the information.

It is possible that your employer may have made an error on the Form W-2 return, in which case you should request that they issue a corrected W-2 (W-2c). If your employer refuses to make such a correction, you may contact the IRS to have them issue a warning to your employer.

Due to IRS Identity Verification

With the increase in fraud and identity fraud, the IRS has become more cautious when processing tax applications, placing a lot of emphasis on verifying the taxpayer’s identity. So, if the IRS needs more information about your identity, it will send you a notice requesting copies of your identification. It should be noted that the IRS has certain criteria, which could trigger a request for identification, but they also request it randomly, and this triggers code 570.

Due to tax credits

There may be a delay due to tax credits, which may require additional review by the IRS. These credits include, but are not limited to, Earned Income Tax Credits (EITC) and the American Opportunity Tax Credit (AOTC). It is important to mention that, in previous years, EITC-related returns received their refunds in approximately 3 weeks.

Due to the 2021 tax rule change, it allowed taxpayers to use prior year income to claim the credit; however, the processing of EITC returns by the IRS has increased significantly, and in some cases can take up to 2 months.

Due to refund recapture credits and child tax credits.

Due to the COVID-19 pandemic in 2020, 2021, the IRS was responsible for sending out the so-called, stimulus payments and advance child tax credit payments. In the event that you were eligible for these payments, but did not receive them, you may be able to proceed with the claim on your tax return. However, because these payments were processed early in the year, many taxpayers did not know how much money they had received, so when they filed their returns they made errors. These delays resulted in a significant number of TC 570 code notices being sent by the IRS for correction.

In the event that the IRS reports that you have received stimulus payments or advance child tax credit payments, but never actually received them, you can make such a claim by contacting the IRS and requesting a payment tracing. Payment tracings can take up to 4 weeks, and if it is shown that you did not receive the payments, the IRS will allow you to claim the credit on your tax return.

Can IRS code 570 be resolved?

When you receive the 570 code delay notice in your account, you must wait for the IRS to finish processing your return, as you as a taxpayer cannot proactively resolve the 570 code notice. You must wait for the IRS to complete the process and if the delay on your return is resolved positively, you will receive a code 571 notice informing you that the refund process has resumed.

Calling the IRS to request that they expedite the return process has no impact on the return process. This is because the IRS call center cannot provide information about the ongoing process; such information will be available until the process is completed.

One of the most convenient ways to check the status of your refund is to visit the IRS Where’s My Refund website, which will give you more information on the status of your refund, as well as track the process.

What does the amount of money on the 570 code line mean?

The TC code 570 line will appear as $0.00, this is because code 570 does not change anything on your return. In the event that the withholding and subsequent review results in changes to your return, the difference in money will appear with the change codes.

How do I know when the TC570 has been resolved?

Once the IRS has completed the process and removed the withholding from your account, you will receive a letter describing the changes made to your return, and you may receive your refund as expected. Remember, you can monitor the status of your withholding through your IRS account by visiting the irs.gov website.

How long will this situation delay my refund?

Let’s be clear and straightforward. It can take anywhere from 3 weeks to 3 months. The IRS resolves many of the issues related to TC Code 570, so a couple of weeks is almost always sufficient to conclude the process; however, keep in mind that due to the heavy workload and lack of funds, the IRS has been forced to work with more cases than it can resolve quickly, which has significantly increased the response time.

If more than 2 months have passed without a response from the IRS, we recommend that you contact the Taxpayer Advocate’s office for assistance.

Incorrect IRS assessment

Upon completion of the review process of your return, you may receive a notice of assessment. You do not have to accept the IRS proposed changes immediately, you have up to 30 days to do so, so we recommend contacting the IRS if you see any incorrect information on your assessment.

You may choose to contact the Taxpayer Advocate Service, which is responsible for ensuring that taxpayers receive fair service from the IRS. While the Taxpayer Advocate Service has no power over the IRS, it can be very helpful in shortening response times.

The third option is to hire a tax professional to advise you and help you speed up the process, one recommended option is to contact the tax specialists at TaxShark.com.

Frequently Asked Questions and Answers

We know that tax issues are always a bit cumbersome, and while our experts have done their best to explain everything related to IRS Code 570 to you, you may still have some questions. For that reason, we have added the most recurring questions our readers send us regarding 570.