If you’re checking to find out where your refund is, you might see tax code 570. Here’s what it means and how to get your tax refund faster.
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This post is provided for general information only. Please confirm the details and circumstances of your unique situation with your tax accountant or other appropriate advisor before taking action.
What does tax code 570 mean?
Tax code 570 is an IRS transcript freeze code that stops your tax refund from going out. It is one of many internal codes that you might see if you check your IRS transcript.
There is no special meaning to the number 570. It just happens to be the code the IRS used when it was setting up its computer systems.
The only thing that tax code 570 means on your end is that you won’t get your refund yet.
What does tax code 570 do?
Tax code 570 generally means the IRS will hold your entire refund. The IRS typically doesn’t send partial refunds.
If you claimed a $2,000 refund and have a hold for a $1,000 issue, the IRS won’t send you the undisputed $1,000. It will wait until it reviews your refund and send your full refund amount in one payment.
Why does the IRS freeze tax refunds?
There are several reasons the IRS might freeze your tax refund, including the following.
- The IRS is waiting for your employer to verify or report wages.
- The IRS is waiting for information from Social Security.
- You need to verify your identity.
- You have a tax debt.
- The IRS believes you made an error on your tax return.
- You have an additional liability pending.
- You have a hold while the IRS reviews a credit you claimed.
Can you do anything about tax code 570?
If you see tax code 570, there is nothing you can do but wait. Sometimes, the IRS just needs to do more tax return processing before it can send your refund. Other times, it is waiting for information from someone else.
If the IRS needs you to send information, it will send you a separate notice. So be sure to watch your mail for IRS notices. If you moved since you filed your tax return, use Form 8822 to change your address with the IRS so any notices go to the right address.
You can also call the IRS for a status update, but they generally tell you to wait at least six to eight weeks after you file to call.
How do you stop tax code 570 from happening again?
Having your tax refund frozen can be a major inconvenience. You may want to stop it from happening again next year. First, you need to understand why the IRS held your refund.
Some refund holds are required by law. For example, if you claim the Child Tax Credit or Earned Income Tax Credit, the IRS typically doesn’t start sending those refunds out until the middle of February. They can also sometimes have longer processing times. This is due to additional verification of those credits, and there’s nothing you can do except to file early and wait.
If the freeze was because of your error, you may be able to prevent it by making sure you don’t repeat the same mistake. For example, you might want to switch to different tax filing software that will help you to file a more accurate tax return.