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IRS Code 971 Explained: What It Means and What Happens Next

Marty Olo

10/1/2026

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IRS Code 971 Explained: What It Means and What Happens Next

If you checked your IRS tax transcript and noticed Code 971, you may be wondering whether something is wrong with your tax return or refund.

The good news is that IRS Code 971 does not automatically mean you owe additional taxes or that your refund has been denied. In many cases, it means the IRS recorded an additional action or notice on your tax account.

Here’s what Code 971 means and what you should look for next.

What Does IRS Code 971 Mean?

IRS Transaction Code 971 generally indicates that a miscellaneous action or notice has been recorded on your tax account.

The exact meaning can depend on the circumstances and other information associated with the transaction.

For example, the Taxpayer Advocate Service has shown transcripts where Code 971 appears as “Notice Issued.” The IRS also uses Code 971 with different action codes internally for several types of account activity.

That means you should not interpret Code 971 by itself without looking at the other codes and dates on your transcript.

Does Code 971 Mean the IRS Sent Me a Notice?

It can.

One common reason for Code 971 appearing on an account transcript is that the IRS has issued or recorded a notice.

Check:

The description next to Code 971
The date listed beside the code
Any letters or notices you recently received from the IRS
The transaction codes immediately before and after Code 971

The IRS explains that the transaction section of an account transcript displays transaction codes along with descriptions, dates and, when applicable, dollar amounts.

What Does Code 971 With Code 570 Mean?

A combination many taxpayers notice is:

Code 570 – Additional Account Action Pending

followed by

Code 971 – Notice Issued or another miscellaneous account action

Code 570 generally indicates that additional IRS account action is pending, which can temporarily prevent an overpayment from being released while the account is being reviewed.

The Taxpayer Advocate Service explains that Code 570 may appear when the IRS system places a hold on an account while additional activity is being reviewed.

If Code 971 appears afterward, look closely at its date and description and watch for correspondence from the IRS.

However, seeing 570 and 971 together does not automatically tell you the final outcome of your refund.

Does Code 971 Mean My Refund Is Approved?

No.

Code 971 itself is not a refund approval code.

If your refund is eventually approved and scheduled for issuance, one of the important transaction codes to watch for is Code 846 – Refund Issued.

Until Code 846 or another account-changing transaction appears, you should avoid assuming that Code 971 means your refund has been approved or denied.

What Should I Do After Seeing Code 971?

First, read the description and date next to the code.

Next, check for any IRS notices you have received by mail or through your IRS Online Account.

You should also review the other transaction codes on the transcript because they can provide important context about what is happening with your account.

The IRS notes that a tax account transcript shows activity on the taxpayer's account, including changes made after the original return was filed.

If the IRS sends you a notice requesting information or requiring a response, follow the instructions and deadline included in that notice.

Code 971 Doesn't Always Mean Something Is Wrong

Seeing a new code appear on an IRS transcript can be stressful, especially when you're waiting on a refund.

But Code 971 should be viewed as one piece of the overall transcript rather than proof that something is wrong with your return.

Look at the description, transaction date, surrounding codes and any IRS correspondence before determining what may be happening.

Make IRS Transcript Codes Easier to Understand

IRS transcripts can contain dozens of transaction codes that aren't always easy to understand.

IRS Helper explains common IRS transcript codes, notices and refund updates in plain English so you can better understand what you're seeing.

Search codes like 570, 971, 846 and more directly inside the IRS Helper app.

IRS Helper is available now on the Apple App Store.

IRS Helper is an independent educational tool and is not affiliated with, endorsed by, or connected to the Internal Revenue Service or the U.S. government. Information provided is for general educational purposes and should not be considered tax, legal, or financial advice.

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