Transaction Codes (TC) can be found on your account transcript and consist of three digits. They are used to identify a transaction being processed and to maintain a history of actions posted to a taxpayer’s account on the Master File. Every transaction processed must contain a Transaction Code to maintain Accounting Controls of debits and credits, to cause the computer at Enterprise Computing Center to post the transaction on the Master File, to permit compilation of reports, and to identify the transaction when a transcript is extracted from the Master File.
Assessment & Filing (TC 150 – 400)
These codes confirm the filing of your return and track the official assessment of your tax liability, including initial and subsequent adjustments.
| TC # | Simple Meaning for Taxpayers | Action / Result on Your Account | Taxpayer Action |
|---|---|---|---|
| 150 | Return Filed & Tax Due Assessed | Posts the original tax liability from your filed return. | None; confirms filing. |
| 166 | Delinquency Penalty Added | Penalty for Failure to File (FTF) by the deadline. | File immediately and consider requesting penalty abatement. |
| 176 | Estimated Tax Penalty | Penalty for not paying enough Estimated Tax during the year. | Increase your quarterly estimated payments or W-4 withholding. |
| 276 | Failure to Pay Penalty Added | Penalty for Failure to Pay (FTP) the tax owed by the deadline. | Pay the balance due or establish a payment plan (TC 480). |
| 290 | IRS Added Tax (Assessment) | An assessment that increases the amount of tax you owe (debit). | Check the associated notice (e.g., CP2000) and respond within 30 days. |
| 291 | IRS Removed Tax (Abatement) | An abatement that decreases the amount of tax you owe (credit). | Confirms a correction or successful challenge; no further action. |
| 300 | Audit Increased Tax | Posts an additional tax liability due to a formal audit or examination. | Review the audit report (30-day letter) and consider filing an appeal (Topic 151). |
| 301 | Audit Reduced Tax | Posts a reduction of tax liability due to a formal audit or examination. | Confirms the close of an audit favorable to you. |
| 340/341 | Interest Assessment/Abatement | Posts an assessment (debit) or abatement (credit) of interest. | Interest accrues daily; pay tax due quickly to stop further interest charges. |
Audits, Reviews, and Account Freezes (TC 420 – 470)
These codes indicate your account is actively under review, or that the IRS has recorded a filing extension or specific penalty actions.
| TC # | Simple Meaning for Taxpayers | Action / Result on Your Account | Taxpayer Action |
|---|---|---|---|
| 420 | Under Audit / Frozen | Your account is referred to the Examination Division for review. Refunds are frozen. | Wait for the official notice (letter) and gather supporting documents. |
| 421 | Audit Closed | The examination is closed. This usually releases the refund freeze. | Check the resulting TC (290/291 or 300/301) to see the final outcome. |
| 460 | Extension Filed | The IRS recorded your approved extension of time to file (Form 4868, etc.). | File your return by the extended deadline (tax is still due by the original date). |
| 470 | Account Hold (Temporary Freeze) | A general-purpose code for a temporary hold on processing, often pending manual review or clarification. | If seen with a refund delay, call the IRS after the Date of Notice to inquire. |
Collection & Resolution (TC 480 – 608)
These codes show the status of your debt, including payment plans, collections, liens, and the final expiration of the collection period.
| TC # | Simple Meaning for Taxpayers | Action / Result on Your Account | Taxpayer Action |
|---|---|---|---|
| 480 | Offer in Compromise (OIC) | Records the filing date of an Offer in Compromise (OIC) to settle debt. | Ensure you continue to file and pay all current tax liabilities on time while the OIC is pending. |
| 570 | Action Pending / Refund Freeze | A **hold (freeze)** on the account is placed while another action or review is pending. **Refunds are frozen.** | Wait for the IRS notice (letter) detailing the issue that caused the freeze. |
| 530 | Balance Uncollectible | Your debt is designated as currently not collectible (CNC). | The debt is still legally owed, but collection actions have been paused. |
| 540 | Levy Action | Posts an action to place or release a levy (seizure of wages, bank funds, etc.). | Respond immediately to IRS collection notices to negotiate a payment plan before a levy is placed. |
| 550 | Collection Deadline Extended | Extends the Collection Statute Expiration Date (CSED)—the time the IRS has to collect the debt. | Review Form 900 (Taxpayer Action), which waives the CSED, with your tax professional. |
| 582 | Tax Lien Filed | Confirms a Federal Tax Lien has been filed against your assets. | Address the underlying tax debt to qualify for lien withdrawal or release. |
Payments, Credits, & Refunds (TC 610 – 898)
These codes track the money flow: what you paid, what credits you earned, and when the refund was sent or adjusted.
| TC # | Simple Meaning for Taxpayers | Action / Result on Your Account | Taxpayer Action |
|---|---|---|---|
| 610 | Estimated Tax Payment | Credit for a payment made toward your estimated taxes (Form 1040-ES). | None. Confirms payment was applied correctly. |
| 640 / 806 | Tax Withholding Credit | Credit for income tax that was withheld from your W-2, 1099-R, etc. | Compare this amount against your W-2s and 1099s to ensure accuracy. |
| 670 | Payment Received | Credit for a general tax payment made via check, phone, or online. | None. Confirms payment was applied correctly. |
| 768 | Earned Income Credit (EIC) | Credit posted for the refundable Earned Income Tax Credit. | None. Confirms EIC was successfully calculated and applied. |
| 770 | Interest Paid to You | A credit for interest paid by the IRS on your delayed refund. | None. |
| 810 | Refund Freeze/Hold | A **full freeze** on any refund or overpayment amount. This may require a manual review or a return correction. | Wait for an IRS notice (letter) detailing the issue that caused the refund freeze. |
| 811 | Refund Freeze Reversal | The **freeze on your refund has been released**. The overpayment is now available to be applied or issued. | Wait for the subsequent TC 846 (Refund Issued) to post. |
| 820 | Overpayment Moved Out | An overpayment was removed from this tax year (e.g., to pay a prior debt or be applied to next year’s taxes). | Check the amount and the destination module (if available). |
| 826 | Overpayment Moved In | A credit was moved into this tax year (e.g., from a prior tax year). | None. Confirms the transfer was completed. |
| 840 / 846 | Refund Issued | Your tax refund was issued by check (840) or direct deposit (846). | Check your bank or mail for the refund within 1-2 weeks of the posting date. |
| 841 | Refund Canceled | A previously issued refund was canceled or reversed (often because the bank rejected the direct deposit). | Wait for a paper check to be mailed to your address on file. |
| 844 | Erroneous Refund | The IRS believes you received a refund **in error** and may require repayment. | Wait for the notice and follow instructions to repay the erroneous amount. |
| 898 | Refund Offset (Debt Paid) | Your refund was **reduced or taken** to pay a debt (e.g., child support, student loans) via the Treasury Offset Program (TOP). | Contact the agency listed on the offset notice (not the IRS) for details on the debt. |
Top 25 Most Common Codes Quick Reference
| TC # | Simple Meaning for Taxpayers | Category |
|---|---|---|
| 150 | Return Filed / Tax Due | Filing/Assessment |
| 166 | Failure to File Penalty | Penalties |
| 276 | Failure to Pay Penalty | Penalties |
| 290 | IRS Added Tax (Assessment) | Assessment/Review |
| 291 | IRS Removed Tax (Abatement) | Assessment/Review |
| 300 | Audit Increased Tax | Audit |
| 420 | Under Audit / Frozen | Audit/Freeze |
| 421 | Audit Closed | Audit/Freeze |
| 460 | Extension Filed | Filing |
| 470 | Account Hold (Temporary Freeze) | Freeze |
| 530 | Balance Uncollectible | Collection |
| 540 | Levy Action | Collection |
| 582 | Tax Lien Filed | Collection |
| 610 | Estimated Tax Payment | Payments/Credits |
| 640/806 | Tax Withholding Credit | Payments/Credits |
| 670 | Payment Received | Payments/Credits |
| 768 | Earned Income Credit (EIC) | Payments/Credits |
| 770 | Interest Paid to You | Interest |
| 820 | Overpayment Moved Out | Transfer |
| 826 | Overpayment Moved In | Transfer |
| 840/846 | Refund Issued | Refund |
| 841 | Refund Canceled | Refund |
| 844 | Erroneous Refund | Refund |
| 898 | Refund Offset (Debt Paid) | Offset |
| 976 | Amended Return Filed | Filing |
Also check out our Transcript Resource Page Here for more info!
Decoding your IRS Transcript can feel like reading ancient hieroglyphics, but as you’ve seen, every three-digit code tells a clear story about your tax account.
By understanding TCs like 150 (Return Filed), 846 (Refund Issued), and especially codes like 420 or 570 (Account Freezes), you are no longer waiting blindly for the IRS. You are now equipped to anticipate next steps and respond proactively.
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