TAX WIZARDS INCOME TAX SERVICE

⚠️ UPDATED TO CODE 570 ON YOUR IRS TRANSCRIPT? READ THIS FIRST.

A lot of people updated to Code 570 this week and started panicking.

Relax.

Code 570 simply means the IRS placed a temporary hold on your refund while they review something on the return.

Common reasons include:

• income verification
• tax credits like EITC or ACTC
• wage matching with employers
• identity checks
• random review

Most of the time it does NOT mean something is wrong.

It just means the IRS paused the refund while they verify information.

What usually happens next:

• 971 = IRS issued a notice
• 571 = hold released
• 846 = refund issued

Once you see 846, the refund has been approved and sent.

⚠️Important:
Do not amend your return unless the IRS tells you to or you know something is incorrect, like missing income or credits you weren’t eligible for. Amending too early can delay your refund even longer.

💡Also remember, not everyone updates daily.
Some transcripts update daily, while others update once a week (Thursday night into Friday).

The 2025 income tax landscape is defined by the "One Big Beautiful Bill" (OBBBA), which makes permanent many expiring Tax Cuts and Jobs Act (TCJA) provisions. Key 2025 developments include increased standard deductions ($31,500 for married filing jointly), sustained individual tax rates, and, for 2026, the elimination of personal exemptions and higher child tax credits.

Significant staffing reductions and a growing backlog of unprocessed returns are creating a high risk of tax refund delays during the 2026 filing season.

For the 2026 tax season, the IRS has opened, focusing on modernization with increased 401(k) limits to \(\$24,500\) and updated mileage rates. Key updates include phasing out paper checks for electronic payments, new "One, Big, Beautiful Bill" (OBBB) provisions like deductions for tips and overtime, and the introduction of "Trump Accounts" for child retirement savings.

The IRS 2026 filing season opens on Monday, January 26, 2026, for individual taxpayers to e-file their 2025 tax returns.

It's understandable that some taxpayers aren't interested in forming a relationship with their tax professional. I recently had a discussion about this with a colleague who specializes in tax. There are instances where a strong service-provider relationship is essential. To build a firm that focuses on high-value relationships where clients appreciate expertise over price, one must effectively manage tire kickers during tax season.