What Does IRS Code 570 Mean for My Tax Refund?

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You filed your US tax return from abroad, checked your refund status, and saw Code 570 on your IRS transcript. Does this mean there’s a problem?

Code 570 means “Additional Account Action Pending.” For most expats, this is a routine review that resolves automatically within 2-4 weeks without any action on your part. The IRS is simply verifying information before processing your refund.

Code 570 doesn’t mean you made an error. It’s a temporary hold while the IRS confirms details. For Americans living abroad, this often relates to Foreign Earned Income Exclusion (FEIE) claims, Foreign Tax Credits (FTC), or foreign income verification.

We know how stressful unexpected codes can be. This guide explains what Code 570 means for expats and what happens next.

Why Does Code 570 Appear on My Tax Transcript?

The IRS uses Code 570 for several reasons. For Americans living abroad, common triggers include:

Foreign income verification: Confirming your FEIE claim and that you meet the Physical Presence Test (330 days abroad) or Bona Fide Residence Test.
Foreign Tax Credit review: Verifying foreign taxes paid match what foreign authorities reported on Form 1116.
FBAR and foreign account questions: Cross-referencing your tax return with FBAR filings and Form 8938.
Tax credit claims: Additional review of Earned Income Tax Credit, Child Tax Credit, or other credits that have a higher fraud risk.
Foreign Address Verification: Confirming your foreign residence, especially if you have recently moved abroad.
Wage reporting mismatches: Discrepancies between your W-2 and what you reported, or corrected W-2 filings.

These reviews are often routine, especially for expat returns that include foreign income exclusions, credits, or multiple country filings.

Does Code 570 Mean the IRS Is Auditing Me?

No. Code 570 indicates a processing delay, not an audit. An IRS audit begins with specific notices (CP2000 or a formal audit letter).

Code 570 is a routine verification. For expats claiming the FEIE or FTC, additional checks are standard. If there’s an issue, you’ll see Code 971 (“Notice Issued”) on your transcript, followed by a letter explaining what’s needed.

How Long Does Code 570 Last Before My Refund Is Released?

Most Code 570 holds resolve within 2-4 weeks without taxpayer intervention. Timeline varies based on:

Type of review needed (simple verification vs. complex foreign income review)
IRS processing volume (peak season takes longer)
Documentation completeness
Whether additional information is required

If Code 570 shows a future date, that’s when the IRS expects to take the next steps. This is not a guaranteed refund date but rather the earliest possible resolution date.

Important

Filing Form 1040-NR or having a foreign address can extend processing up to 6 months, separate from Code 570 delays.

What Should I Do When I See Code 570 on My Transcript?

In most cases, you don’t need to take action. Here’s your timeline:

Week 1-2: Monitor your transcript

Check weekly for updates
Look for Code 971 (“Notice Issued”)
Watch your mail for IRS correspondence

Week 2-4: Watch for resolution codes

Code 571 or 572: Hold released
Code 846: Refund issued (includes deposit date)
Code 290: Additional tax assessed

After 4+ weeks: The IRS will send a notice within 30 days of Code 570. If you see Code 971 but no letter arrives, check your IRS online account for digital copies.

Important

Calling the IRS will not expedite the resolution. Phone agents can typically only confirm what’s visible on your transcript.

Can I Still Get My Refund With Code 570?

Yes. Code 570 is temporary, not a denial. Most people receive their full refund without needing to contact the IRS. Once the review is complete, your refund will be released, unless the IRS identifies an error that requires adjustment.

If adjustments are needed, you’ll receive:

A notice explaining the change
Updated refund amount (Code 846 on transcript)
30 days to respond if you disagree

Common expat adjustments:

Miscalculated FEIE ($130,000 for 2025 tax year, filed in 2026)
Foreign Tax Credit errors
Foreign housing exclusion mistakes
Incorrect foreign income reporting

What Do the Dollar Amounts Next to Code 570 Mean?

$0.00: Non-monetary hold for verification or administrative review

Positive amount: Portion of refund being reviewed (common when specific credits are questioned)

Negative amount: Possible balance due adjustment (rare)

The dollar amount doesn’t predict your final refund. Wait for the IRS review to be completed before drawing any conclusions.

How Can I Prevent Code 570 on Future Returns?

While IRS reviews can’t be avoided entirely, you can reduce the likelihood by:

File accurately:

Double-check Form 2555 (FEIE) and Form 1116 (FTC) calculations
Report all foreign income, even if excluded or credited
Use proper IRS exchange rates for currency conversion

Document thoroughly:

Track days abroad for Physical Presence Test
Save foreign tax receipts and proof of payment
Maintain foreign address and residency documentation

File required forms on time: FBAR and Form 8938 inconsistencies trigger reviews.

Ensure consistency: W-2s, 1099s, and foreign income documents must match the information on your return.

What If the IRS Sends Me a Notice?

Once the IRS finalizes the issue, they’ll send a notice. Your transcript will show TC 971 (“notice issued”).

Standard IRS notices for expats:

Letter 4883C or 5071C: Identity verification needed via IRS.gov (ID.me) or phone
CP2000: Under-reported income. Often happens when foreign employers report wages differently
Letter 525 or 566: Documentation required for FEIE or FTC claims

Response steps:

Read the notice carefully
Gather requested documentation
Respond by deadline (30-60 days)
Keep copies of everything

If unsure how to respond, Greenback’s CPAs and Enrolled Agents can help craft the right response.

The Bottom Line on IRS Code 570

Code 570 is a temporary hold, not a permanent problem. For most expats, it resolves automatically within a few weeks once the IRS completes routine verification. You’ll typically receive your full refund without needing to take any action.

If the IRS does need something from you, they’ll send a clear notice explaining what’s required. Respond promptly, provide complete documentation, and your refund will be released.

Living abroad already comes with enough complexity. Your US tax filing shouldn’t add to your stress. Whether you’re seeing Code 570 for the first time or dealing with an IRS notice you don’t understand, Greenback is here to help.

If you’re overwhelmed by Code 570 or worried about responding to an IRS notice, contact us. One of our Customer Champions will gladly answer your questions. If you need specific advice on your situation, you can get a consultation with one of our expat tax experts. No matter how messy or complicated your taxes may be, we can help you get back on track.

If you’re ready to be matched with a Greenback accountant, click the get started button below. For general questions on expat taxes or working with Greenback, contact our Customer Champions.

Seeing Code 570 and not sure what to do next?

Our team of CPAs and Enrolled Agents has helped thousands of expats navigate Code 570 holds. We’ll review your return, identify what triggered the code, and help you respond if the IRS needs anything from you.

This article is intended for informational purposes only and does not constitute legal, tax, or financial advice. The information presented reflects general tax principles and may not apply to your specific situation. Tax laws and IRS procedures are subject to frequent changes. For personalized advice tailored to your particular circumstances, consult a qualified tax professional.