Code 570 and EITC

[Entz]

So this is my first year filing EIC . My return was filed and accepted on 1/24/2022, and my transcript says on 2/03/2022 code 570..

I was reading forums from other years and people didn't have code 570 but filed EIC? I never got a letter in the mail since the 2/03/2022 code 570, and read people still got their DDD 846 after code 570 BUT with no code 971 and letter.

What's really strange though is I have a code 971 but from 04/21 of last year! I amended my taxes last year but everything was accepted and I got my check much later in September because of the pandemic. I'm not sure what's happening or maybe, I'm freaking out too early since it's still not March 1st for PATH?

I'm self employed so any insight on this would be appreciated because I need to start planning now.

[MaryK4]

The 570 is a hold which means the refund will not be processed until the IRS checks other information.  It can be related to almost anything but for 2021 the most common issues are dependents, Unemployment income or Recovery Rebate Credit.  In general, you should expect a delay and unfortunately there is very little you can do to facilitate the process.

The 971 is always used in combination with another code on your transcript- do you have any other codes?

[Entz]

Thanks a lot for responding and no just 971 from last year and then this years 570 underneath it. I have a 1,400 tax relief credit I'm assuming is the stimulus before that. Also this is my 2021 account transcript my return transcript just says N/A. Here's a screenshot.  

[MaryK4]

The tax transcripts are for each year separately, so the 570 applies to the 2020 return so it should not delay your 2021 return, and it most likely is on the transcript to hold any further changes to the 2020 return.   I see you received the third stimulus.  The 971 Notice probably was the Notice 1444-C (letting you know you received the third stimulus).  Why did you file and mended return last year?  

You should sit tight until the first week of March- if you do not get your refund or see something on your 2021 transcript, then call the IRS to get details.  Post again with any updates.

@Entz

[Entz]

Thank you again a lot for responding and you must be right about the 971 it was when the stimulus acknowledgment letter was sent out. The 570 and image is actually from this years 2021 account transcript with the date 02/03/2022. The amended return was because I needed to add some more self employment income that was missed.

Going to call tomorrow and ask about the 570 since it's been on their for 3 weeks now without any updates , will keep you all posted.

[Entz]

So after calling the IRS advocate 18777 number a few times, I was able to get information about a letter coming in the mail today asking me to verify my tax withholding number with my 1099.

The big problem is I never received one and the guy won't answer my me each time I've tried contacting him. The IRS representative repeated what the letter said which is if you're unable to provide a 1099, bond info, etc.. Then you need to provide the most accurate umbers you can based on your personal record. This is exactly what I did which was recommended on several websites and I even double checked, triple checked all my numbers.

So, now I have to fax a letter to the IRS saying that I don't have my 1099 because the guy I was working with basically disappeared and I'm estimating as the letter requested.

I'm a little worried though because the lady said that they could still reject the letter and just take out all of the withholding I claimed which was a good amount, after busting my butt last year during the pandemic. So I guess now it's up to whoever reads my letter if I'm going to get a refund or not. This really is unfortunate and she said it could take up to 16 weeks to review which being self employed is rough.