Master your IRS Account Transcript. This professional guide clearly defines the critical Transaction Codes (TC 150, 570, 846, etc.) to immediately determine your return status, identify processing freezes, and confirm refund issuance. Essential for every taxpayer.
IRS Account Transcript Decoded: Your Professional Reference Guide to Transaction Codes
Understanding Your Transcript: The Core Function
The IRS Account Transcript is the authoritative record of your tax liability and all subsequent financial activity, superseding any information provided by the general “Where’s My Refund?” tool. The Transaction Codes (TCs) listed are the internal directives the IRS uses to process your case. Mastery of these codes is critical for proactive financial management.
Essential IRS Transaction Codes for Return Processing
These codes document the life cycle of a successful tax return, from initial acceptance to final disbursement.
Essential IRS Tax Transcript Transaction Codes
| Transaction Code (TC) | Full Description | Meaning for the Taxpayer |
|---|---|---|
| 150 | Tax Return Filed and Tax Liability Assessed | The original tax return has been processed. The amount column shows the total tax liability before any credits or payments. |
| 290 | Additional Tax Assessment | An additional tax liability has been assessed by the IRS, often due to an audit, correction, or an amended return (Form 1040-X). |
| 291 | Abatement Prior Tax Assessment | A previously assessed tax amount has been reduced or removed (abated). This often follows a successful appeal or correction. |
| 420 | Examination Indicator | The tax return has been selected for examination (audit) or review. This code places a freeze on the account, preventing a refund until the review is complete. |
| 421 | Examination Indicator Reversal | The examination (audit) status has been reversed or closed. Processing can now resume. |
| 460 | Extension of Time to File | An extension of time to file (Form 4868) was granted and processed on the account. |
| 570 | Additional Liability Pending/Hold on Refund | A temporary “hold” on processing or a refund is in place pending review. This is common for identity verification or manual review. |
| 571 | Hold Released | The temporary hold placed by TC 570 has been released. This is a positive sign that processing can continue, and a refund may follow shortly. |
| 766 | Tax Credit | A non-refundable or refundable tax credit has been applied to the account. |
| 768 | Earned Income Credit (EIC) | The Earned Income Tax Credit (EIC) has been claimed and applied to the account. |
| 806 | Credit for Withholding/Estimated Tax | Tax withheld from W-2 or 1099 income, or tax paid via estimated tax payments, has been credited to the account. |
| 846 | Refund Issued | The refund has been approved and issued to the taxpayer. |
| 971 | Miscellaneous Transaction/Notice Issued | A miscellaneous action has taken place, or a notice has been sent to the taxpayer. The specific action is determined by a secondary code. |
| 977 | Amended Return Filed/Adjustment to Original Return | An amended tax return (Form 1040-X) has been processed, or an IRS adjustment has been made to the original return. |
Additional Key Processing & Penalty Codes
| Transaction Code (TC) | Full Description | Meaning for the Taxpayer |
|---|---|---|
| 196 | Interest Assessed | Interest has been charged on an underpayment of tax. |
| 270 | Penalty for Failure to File | **A penalty has been assessed** for late filing of the tax return. |
| 276 | Penalty for Failure to Pay | **A penalty has been assessed** for not paying the tax liability by the due date. |
| 300 | Examination Tax Assessment | **A tax increase resulted from an IRS examination (audit).** |
| 470 | Examination Statutory Notice Issued | **The IRS has initiated collection actions** related to an examination. |
| 480 | Offer in Compromise Pending | **An Offer in Compromise (OIC)** has been submitted and is under review. |
| 520 | Litigation Instituted/Appeals Review | **The account is involved in IRS litigation, Appeals, or bankruptcy.** |
| 530 | Currently Not Collectible (CNC) | **The balance due is temporarily non-collectible.** |
What to Do Now
You are now equipped with the essential knowledge to interpret your IRS Account Transcript, giving you insight that the general public lacks. Use this information strategically, not reactively.
- If You See TC 846 (Refund Issued): Your role is complete. Verify the posting date and confirm receipt in your designated bank account.
- If You See TC 570 (Hold) Followed by TC 971 (Notice Issued): Do not call the IRS immediately. Your next step is mandated by the letter in transit. Await the notice and prepare your response or documentation as instructed.
- If You See TC 420 (Audit Indicator): This is a critical situation. Immediately engage a tax attorney or certified public accountant (CPA) specializing in examinations to represent your interests.
- If You See No Movement (No TC 846 or 571) for 60 Days Post-TC 570: You have exhausted the waiting period. Contact the Taxpayer Advocate Service (TAS) for assistance in resolving the internal account freeze.
The transcript is a status report, not an obstacle. Use this tool to maintain control and ensure the efficient resolution of your tax liability.
