A frozen refund (often marked by IRS Transaction Code 810 or 570) means the IRS has temporarily stopped or delayed processing your tax refund due to a hold. This generally happens because of inconsistencies, potential errors, audit selection, or identity verification, requiring the IRS to review your return before releasing funds.
There are many reasons why the IRS may be holding your refund. You have unfiled or missing tax returns for prior tax years. The check was held or returned due to a problem with the name or address. You elected to apply the refund toward your estimated tax liability for next year.
Normally, you'll receive IRS Letter CP88 indicating your refund is frozen until the IRS completes the audit. If you respond with the requested information by the deadline, the IRS will generally finish the audit within six months and will release your refund.
How To Lift the 810 Refund Hold Status
Compliance Refund Hold Projects
A Transaction Code (TC) 810 or TC 570 indicates a stopped/frozen refund. TC 810 or TC 570 is used by Exam or Automated Questionable Credit (AQC) if a taxpayer's return is under review or the previous review is not closed.
An 810 code on an IRS transcript often means your tax refund is frozen. The freeze happens for various reasons, frequently related to discrepancies or audits. Seeing this code signals you need to investigate the cause, usually by reviewing your tax return transcript.
Bank Freeze Period – After the levy reaches your bank, your funds are frozen immediately. You won't be able to withdraw or use that money. 21-Day Hold – The IRS provides a 21-day grace period before funds are moved. This window is your chance to negotiate, appeal, or resolve the debt.
Generally, the IRS must give you a 30-day notice before initiating a bank levy. Then, your bank will freeze the affected funds for 21 days before sending them to the IRS. In the case of a jeopardy levy, the IRS can start the bank levy without the required 30-day notice.
The IRS utilizes bank account freezing as a legal means to recover unpaid taxes, essentially putting a hold on the funds in an individual's account. This action restricts access to and withdrawal of money when previous attempts to collect owed taxes have been unsuccessful.
If an individual's identity verification issues result in a refund freeze, they can exercise their rights under the FCRA to dispute the incorrect information and request corrective action.
The IRS doesn't have a strict maximum time limit for issuing refunds, but generally processes e-filed returns with direct deposit within 21 days, while paper returns take 6 weeks or more, with longer waits for those claiming certain credits (EITC/ACTC) or if errors occur. If the IRS holds your refund for more than 45 days past the tax deadline (or filing date if late), they owe you interest, but significant delays (months) can happen for complex issues or extra reviews, sometimes requiring a mailed notice.
Until the levy has been released when your tax debt has been paid in full, you might face financial woes. However, there is room to bargain with the IRS for a modification or even a release to the garnishment if you don't have enough money to cover basic living expenses after the levy has gone into effect.
Request an expedited refund by calling the IRS at 800-829-1040 (TTY/TDD 800-829-4059). Request a manual refund expedited to you.
You generally shouldn't worry if your refund is "still being processed," as it means the IRS is working on it, but it might take longer than the typical 21 days due to common issues like errors, incomplete information, or claiming credits like the EITC/ACTC. Worry only becomes necessary if you receive an IRS letter requesting more information or if the "Where's My Refund?" tool shows a specific problem like fraud, but typically, it just means a longer wait, not no refund at all.
How to resolve a refund freeze:
Bank accounts can be frozen for such reasons as your financial institution suspecting fraud or illegal activity, a court order indicating you owe a debt, or government action to recoup unpaid student loans or taxes.
The IRS can generally levy any account in your name for unpaid taxes, but some funds are protected, like certain disability payments or Social Security (though some can be taken), and funds in an irrevocable trust or accounts not directly in your name (like some business or trust accounts) are harder to seize. Certain income sources are never taxed, like some veterans' benefits, child support, and welfare, but these aren't usually held in traditional bank accounts. The key is that the IRS targets your assets for your tax debt, so protecting funds by legally changing ownership or ensuring they are designated as non-taxable income is how they become untouchable by levy.
810 on your tax transcript typically means: "Refund Freeze" – A hold on your refund. This code is often used when they're reviewing your return for issues such as identity verification, income discrepancies, or other potential problems.
Once a bank receives a levy notice from the IRS, it's legally required to freeze the funds in the account for 21 days. During this period, your client cannot access the money—but the IRS doesn't have it yet either. That 21-day window is critical.
Your accountant informs you that he has been interviewed by the IRS. The IRS agent starts copying voluminous documentation rather than simply reviewing the documents you provide, and then returning them. The IRS issues a summons to interview you, rather than simply asking you to come in for an interview.
The IRS has no maximum time limit when it comes to processing tax refunds, but after 45 days, it is required to pay interest on your refund. In most cases, you can expect the IRS to issue your tax refund within 21 days of filing your tax return.
The IRS is required to keep the filing open and hold on to unclaimed income tax refunds for three years. If you don't file for the tax refund after three years, the money becomes property of the US Treasury, and you won't be able to get it back.
The IRS uses a combination of automated and human processes to select which tax returns to audit. Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit.