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IRS Code 971

You may receive a notice from the IRS that you may be concerned about; however, generally IRS Code 971 notices are to alert you that a tax filing change and/or update has been made, so there is no reason to be alarmed, here is everything you need to know about IRS 971.

What is IRS Code 971?

As mentioned above, Code 971 is one of the ways the IRS communicates with its taxpayers to inform them of a change in tax filing. The reasons why a change has been made can be many, so it is important to review well the information that is sent by the IRS.

According to the IRS, the official meaning of Code 971 is considered to be Miscellaneous Transactions. This type of notification means that the information submitted is either under review or additional information is needed to be considered complete. In general, the IRS will tell you what to do or how to proceed if additional information is needed.

What does the amount on the IRS 971 line mean?

In the event that there is an amount on the line where code 971 is found, this could be interpreted as an IRS adjusted return amount. Importantly, depending on the code included, it could be in reference to other processing. In the event that it is in reference to an adjustment return, the IRS will inform you of any changes that have been made.

It is important to mention that, for Code 971, no action is required on the part of the taxpayer, unless otherwise directed by the IRS. If you have any questions, it is best to call the IRS to avoid any problems with a transcription that may result in penalties. You can request more information by calling 1-800-829-1040 where an agent will assist you and answer your questions.

Possible reasons for receiving IRS 971

As mentioned above, there are several reasons why IRS 971 may appear on IRS notices. The code is simply a way of notifying you and generally should not be a cause for concern, below are the most common reasons you may receive the 971 code notice.

  1. Tax refund corrected
  2. Balance transferred to split liability account
  3. Bankruptcy notice
  4. Duplicate tax return processed
  5. Collection due date
  6. Collection due process issued with Notice of Intent to Levy
  7. Duplicate notice sent to spouse
  8. Marital status for income tax return purposes

It is important that in case you receive the code 971, and you have doubts about it, proceed to contact the IRS, although this type of code does not have to do with IRS collection issues, it is best to clarify the doubts directly with an agent by calling: 1-800-829-1040.

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IRS Code 971
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 by Josh Smith

Thanks for the info.