The Providence Journal

What do three-digit IRS codes on taxes mean?

- Clare Mulroy

Taxes can be confusing, but they don’t have to be. With a slew of numbers, acronyms and deadlines, it can be challengin­g to figure out how to interpret your returns.

Let’s start with transactio­n codes, the threedigit codes that signify an Internal Revenue Service action related to your taxes, such as a credit or debit.

The codes help create a history of your account. An “R” following a transactio­n code shows that the transactio­n has been reversed.

Here are the most common to know this tax season:

Code 826 means that part of your tax refund was used to pay an existing tax debt.

Code 846 signals a refund, plus any interest, has been approved by the

IRS.

Code 570 means there is a hold on your account that’s preventing the IRS from finalizing your refund. You should wait for the IRS to ask you for additional informatio­n.

Code 971 means the IRS has asked you for additional informatio­n on an issue, and it’s typically related to code 570.

You can view all of the IRS codes on their website, but here are some typically seen on tax returns:

000: Adds a new taxpayer entity to the applicable Master File, which is a running record of IRS actions related to your account.

011: Change Employer Identifica­tion Number, Social Security number or plan number

013: Changes the name of the account or plan

017: Adds or changes spouse’s Social Security number

091: Revocation of being taxed as a small business

150: A Master File Entity was created from your return and tax liability assessed

177: Abatement of estimated tax penalty

424: This is an examinatio­n request indicator; your return was referred to the Examinatio­n or Appeals Division

425: Reversed transactio­n code 424

766: Generated refundable credit allowance

768: credit

810: Refund freeze 811: Reverse refund freeze

9001: An error code that shows an attempt to access informatio­n using the wrong Social Security number or Taxpayer Identifica­tion Number.

Earned income

Newspapers in English

Newspapers from United States