How Long After Code 971 Will I Get My Refund?

Taxpayers checking their IRS account transcripts may come across Code 971, which can cause concern about potential refund delays. This code signals an adjustment or notice related to a tax return but does not directly indicate when a refund will be issued.

Understanding what happens next is key to setting realistic expectations. Several factors influence processing times, and knowing the necessary steps can help prevent frustration.

Significance of the Code for Your Return

Code 971 on an IRS transcript means the IRS has taken action on a tax return, often issuing a notice or making an adjustment. This could be a letter requesting additional information, a notification of changes to the return, or an acknowledgment of a taxpayer-initiated request such as identity verification or an amended return. While this code does not necessarily indicate a problem, it does mean further review is underway.

The specific meaning depends on the description next to the code. If labeled “Notice Issued,” the IRS has likely mailed a letter explaining the update. Common notices include CP05, which informs taxpayers their refund is under review, and CP75, which relates to Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) claims requiring verification. If labeled “Adjustment,” it may indicate a correction to reported income, credits, or deductions, potentially altering the refund amount.

Some notices require a response, such as providing W-2s, 1099s, or proof of dependents, while others are informational. If the IRS requests documentation, ignoring it can lead to further delays, so reviewing correspondence promptly is essential.

Expected Timeline After This Code

Once Code 971 appears, the timeline for receiving a refund depends on the IRS’s action. If it corresponds to an administrative update, no delay may occur, and the refund could still be processed within the standard timeframe. However, if the notice requires a response, the refund will not be released until the IRS processes the necessary documentation.

For those required to verify their identity, online verification through the IRS Identity and Tax Return Verification Service typically resolves the issue within three weeks. If done by mail, processing may take six to nine weeks. If the IRS is conducting an audit or a deeper review of reported income and credits, delays could extend up to 120 days or more.

If Code 971 is followed by Code 570, which signals a hold on the refund, processing may take 45 to 60 days, though additional review can extend this period. Once resolved, Code 571 or 572 appears, indicating processing has resumed. A subsequent Code 846 confirms refund approval and disbursement.

Common Factors Affecting Timing

The speed of refund processing after Code 971 appears depends on the complexity of the tax return, the method of filing, and whether additional reviews are triggered. Returns with multiple income sources, extensive deductions, or business-related filings often require more scrutiny, leading to longer processing times. Claims involving credits like the EITC or ACTC may also face delays due to fraud prevention measures under the PATH Act.

E-filed returns with direct deposit process faster than paper-filed ones, which require manual entry before review. Opting for a paper check instead of direct deposit can add weeks due to mailing and bank processing times. Errors, such as mismatched Social Security numbers or incorrect income reporting, can also slow processing as the IRS verifies the information.

IRS workload and staffing levels affect processing times, especially during peak tax season from late January through mid-April. Government shutdowns, budget constraints, system upgrades, or backlogs from previous years can also contribute to delays, particularly for paper-filed returns or those requiring manual intervention.

Verifying Your Refund Progress

Tracking refund status after Code 971 appears requires IRS tools and transcript review. The “Where’s My Refund?” tool provides real-time updates for electronically filed returns within 24 hours of submission and for paper returns after four weeks. This tool displays three stages—Return Received, Refund Approved, and Refund Sent—showing whether processing is advancing. If the status remains at “Return Received” for weeks, additional review may be underway.

For a more detailed breakdown, taxpayers can access IRS account transcripts through the agency’s online portal. The “Record of Account” section lists transaction codes, including updates on adjustments, holds, or approvals. A new Code 846 signifies that the refund has been issued, while its absence suggests further processing is needed. Examining transaction dates provides a timeline estimate, though IRS processing can sometimes extend beyond initial projections.

When to Seek Further Assistance

If a refund remains delayed with no transcript updates or if the IRS has requested documentation but has not acknowledged receipt, it may be time to seek assistance. Taxpayers who have waited beyond the standard processing times should first contact the IRS directly. Calling the agency’s refund hotline at 800-829-1954 or speaking with a representative at 800-829-1040 can clarify whether further steps are needed. Having the most recent tax return, transcript details, and IRS correspondence on hand can help facilitate the conversation.

For cases of extended delays without resolution, the Taxpayer Advocate Service (TAS) may be able to help. TAS assists taxpayers facing significant hardships due to processing delays, errors, or unresolved issues. Those experiencing financial difficulties—such as being unable to pay bills or facing eviction—may qualify for expedited assistance. Filing Form 911, Request for Taxpayer Advocate Service Assistance, can initiate this process. If a refund delay is linked to identity theft, taxpayers should consider filing an Identity Theft Affidavit (Form 14039) to ensure proper review.