If you have IRS Code 570 with a future date, your tax refund will be held until at least that date.
IRS Code 570 Refund Freezes Explained
IRS code 570 is a refund freeze code. That means that the IRS won’t send your tax refund until they check something on your tax return.
When you look up your tax transcript and see code 570 or other codes, you’re seeing the same information that the IRS’s very old computer system sees. Freeze codes tell the computer to not process your tax refund yet.
Many freezes are automatic. For example, if you claim a refundable tax credit, there’s often an additional hold to process your refund especially if you file early. That’s because a lot of people commit tax fraud with refundable credits, so the IRS waits until it gets your tax forms from your employer and other sources.
Other freezes happen when the IRS checks each tax return as it comes in. If the computer system detects a possible error or incorrect claim, it will freeze that tax refund until an IRS agent can check your tax return.
When you have a freeze, you may get the refund you claimed or you may hear from the IRS. The freeze only means that you’re in the automatic waiting period or that they’re still checking something.
So when you have IRS code 570 with a future date, it means that the IRS is freezing your refund until at least that date. At that point, you might get your refund, or you can check your tax transcript again to see if the IRS has extended the freeze.
What to Watch Out For
Since a refund freeze code only means that the IRS is checking your tax return, there’s not much for you to do at this point. Some people jump to calling the IRS, but that won’t make things go faster, and you’ll only stress yourself out waiting for hours on hold.
It’s not worth contacting the IRS until you get a letter or it’s been several weeks without seeing any status changes in your account.
One common mistake that people make is changing their bank account before their refunds arrive. You can’t change your tax refund direct deposit info after you file.
If you close your bank account, the IRS will send your refund to your old bank. It will then take a few more weeks for your refund to bounce back to the IRS and for them to send your check.
If you happen to move while you’re waiting for your tax refund, don’t forget to change your address with the Post Office and on the IRS website.
Where to Get Help With IRS Refund Freezes
There’s really no place to get help with an IRS refund freeze. The freeze only means that you’re in line.
If and when the IRS tells you they’re changing your refund, contact a tax professional if you don’t understand the changes or disagree with the changes.
One additional thing you can do if your refund is taking a really long time (i.e., waiting months with no updates from the IRS) is to contact your local Congressman’s office. Congressmen have staff that can help contact the IRS or other government agencies to try to move things along.
