Installment Agreement Code 971

[ctmurffy]

My husband and I filed on Oct. 14 (we had an extension). We owe about $5000 and set up an installment agreement. Got a letter from the IRS today (Nov. 9), stating the installment agreement was approved, but the return is still being processed. IRS2Go indicates our status is “still being processed.” I logged into our IRS account to review our transcripts and there are multiple standard codes related to tax filing, as well as the installment agreement and penalties for late payment of tax. Many of these codes, including one that just says “971 Notice Issued” have dates of 11/19/18 (10 days from now), and one of the codes, 277 Reduced or removed penalty for late payment of tax, has a date of 11/26/18. What do these codes mean? Why do they have future dates? Should I be worried?

[Critter]

Those codes are not for you to look at ... they are internal IRS codes however you will be getting letters for the underpayment penalty since the estimated taxes you owed should have been paid WITH the extension you filed.  The extension only got you more time to FILE the return not to PAY the return. And as long as you have an unpaid balance due the penalties & interest will continue to accrue just like a debt on a high interest Credit Card.