IRS Transcripts

Code 971 on Your IRS Transcript: What "Notice Issued" Means and What to Do (2025)

By Angeline Balsitis, EA · Reviewed by Melissa Ly, Chief Tax Officer · Updated November 26, 2025 · Editorial Standards

What code 971 IRS transcript entries actually mean

If you pulled your IRS account transcript and spotted "code 971 — notice issued," take a breath. This code is one of the most common things you'll see, and on its own it is not an alarm bell. Transaction code (TC) 971 is a catch-all that the IRS uses to record that a notice or letter was generated and sent to you.

Think of it as a logbook entry: "On this date, we mailed the taxpayer a letter." The code doesn't tell you whether the news is good, bad, or routine. A refund adjustment, an identity-verification request, a balance-due bill, and a simple address-change confirmation can all trigger a 971. The letter itself is where the real information lives.

To the right of the code you'll see a date. That's the date the IRS issued the notice — not the date you'll receive it. Paper mail usually lands one to two weeks later. If you want help reading the rest of the page, our guide on how to read an IRS account transcript walks through the codes line by line.

Code 971 vs. code 570: the pairing that matters most

The single most important thing to check is whether code 971 appears next to code 570. These two often show up together, and the combination changes what's happening:

• Code 570 — additional account action pending. This is a hold. The IRS has frozen your account (usually your refund) while it reviews something — income that doesn't match, a credit it's verifying, or possible identity theft.
• Code 971 — notice issued. This is the letter that explains the hold.

When you see both, the story is usually: the IRS paused your refund (570) and mailed you a notice telling you why (971). The order and dates of the two codes can hint at the sequence, but the bottom line is the same — you need to read the notice to learn what the IRS wants.

If you see code 971 with no 570 next to it, there's often no refund hold at all — the IRS simply sent you correspondence. That could be anything from a math-error notice to a balance-due bill.

What kinds of notices a 971 can point to

Because TC 971 is a generic "we sent a letter" marker, it can stand in for very different notices. Common ones include:

• CP14 — your first bill for unpaid taxes. (See our CP14 notice guide.)
• CP2000 — the income on your return doesn't match what employers or banks reported. (See our CP2000 notice guide.)
• Identity-verification letters like the 5071C or 4883C, asking you to confirm it was really you who filed.
• Refund-review or hold notices tied to a code 570 freeze.
• Adjustment notices such as a CP12, confirming the IRS changed your return.

The point: don't guess. The notice number printed in the top-right corner of the letter tells you exactly which process you're in — and each one has its own deadline and its own correct response. Our roundup of why you got a letter from the IRS can help you match the notice to the reason.

What happens if you ignore the notice behind the code

Code 971 itself does nothing if you ignore it. The risk is ignoring the letter it represents. The IRS's systems are automated and unforgiving of silence — if a notice asks for a response and gets none, the account moves to the next step on a timer. Depending on the notice type, that escalation can look like this:

1. First notice (e.g., CP14 or CP2000). A bill or proposed change with a response deadline. You are here.
2. Reminder notices (CP501, CP503). The balance keeps growing — interest plus a 0.5%-per-month late-payment penalty.
3. CP504 — Notice of Intent to Levy. The IRS can seize your state refund and a federal tax lien becomes a real possibility.
4. LT11 / Letter 1058 — Final Notice. After 30 days, the IRS can garnish wages and levy bank accounts. You still have appeal rights here, but fewer easy options than you have today.

Not every 971 leads down this road — many are purely informational. But the only way to know which kind you're holding is to read the notice and respond on time.

How to respond when you see code 971, step by step

1. Find out which notice it is. Log into your IRS online account — the Notices section often shows the letter days before it reaches your mailbox. Or wait for the paper notice tied to the 971 date.
2. Pull your full transcript. If you haven't already, see how to get your IRS transcript online. Check whether a code 570 hold sits next to the 971, and look for codes like 846 (refund issued) further down.
3. Read the notice carefully. Note the notice number, the tax year, the amount (if any), and the response deadline printed on it.
4. Match the right response to the right notice. A CP2000 gets a written agree/disagree reply; a CP14 gets payment or a payment plan; an identity letter gets verification. The code doesn't tell you — the notice does.
5. Confirm the letter is real. A genuine IRS notice arrives by postal mail and points to a balance you can verify in your online account. The IRS never demands gift cards, wire transfers, or payment apps. Anyone who does is a scammer.
6. Respond by the deadline, and keep copies. If you owe more than you can pay, have unfiled years, or just want it handled correctly, get a professional review first — the order you fix things in changes what you end up paying.

Code 971 questions, answered

This guide is general information, not tax or legal advice for your specific situation. Eligibility for IRS programs depends on individual facts and circumstances; no outcome is guaranteed.

Related: learn how to read an IRS account transcript, how to get your transcript online, or use the IRS notice decoder for CP14, CP2000, LT11 and more — or browse all guides. You can also pull your records directly from the IRS Get Transcript tool.