Understanding IRS Processing Codes for Tax Season 2020

The tax season can be overwhelming for many taxpayers, with several terms and codes to comprehend. One such code that confuses many individuals is the IRS processing code. The code is a three-digit number that indicates the status of the taxpayer’s tax refund. In this blog post, we delve deeper into the working of IRS processing codes during the 2020 tax season.

Understanding the IRS Processing Code

When a taxpayer files their tax returns, they receive their refund payments through processing codes. These codes are a numeric representation of the different stages of tax refund processing. Although the IRS provides the exact meaning of the codes, they can still be confusing to taxpayers. Here is how to decipher the codes:

Codes 150 and 154: Accepted

When the IRS receives your tax return, they initiate the acceptance process. If your return is accepted, you may receive either the 150 or 154-code. Code 150 indicates that the IRS has received your tax return but has not processed it. On the other hand, code 154 indicates that the IRS has fully accepted your return.

Code 152: Refund Approved

If your tax return is accepted, the next stage is the refund approval code – code 152. The code confirms that the IRS has reviewed your return and has approved your refund. If you don’t owe any tax or have any outstanding debts, you can expect your refund in 21 days.

Code 9001: Taxpayer accessed Refund Status information

Code 9001 may appear on your refund status if you have made multiple queries about your return. The code does not imply any issues with your refund, but it indicates that you have accessed the IRS’s online refund-status tool.

Code 570: Taxpayer Owes Debt

If you owe any debts to the IRS or have unpaid taxes, your refund approval may pause at code 570. The IRS will first use your refund to pay off any debts before issuing the remaining amount to you.

Code 971: Potential Fraud

If the IRS suspects fraud on your return, your refund approval may pause at code 971. In this case, the IRS contacts you to discuss the potential discrepancy before approving your refund.

Conclusion

Understanding IRS processing codes can seem daunting, but it’s crucial to know the status of your refund. The codes provide insight into the different stages of tax refund processing and help you track your refund status. By keeping the above codes in mind, you can easily track your refund and avoid any potential errors or issues.

In conclusion, we hope that the information provided in this post has helped you understand IRS processing codes during the 2020 tax season. If you have any questions or concerns about the processing codes, feel free to contact a tax professional for assistance.

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