Tax Transcripts and Codes

Question 1

Definition of Tax Transcripts: What are tax transcripts?

Answer 1

Documents that provide a detailed history of a taxpayer’s account, including returns, payments, penalties, and other transactions with the IRS.

Question 2

Types of Transcripts: What are the main types of tax transcripts?

Answer 2

Tax Return Transcript, Tax Account Transcript, Record of Account Transcript, Wage and Income Transcript. (IRM 21.2.3)

Question 3

Code 150: What does code 150 on a tax transcript mean?

Answer 3

It indicates the posting of an original tax return.

Question 4

Code 846: What does code 846 on a tax transcript mean?

Answer 4

It represents a refund issued to the taxpayer.

Question 5

Code 570: What does code 570 on a tax transcript mean?

Answer 5

It indicates that additional action is pending, such as a review or audit, which may delay the refund.

Question 6

Code 290: What does code 290 on a tax transcript mean?

Answer 6

It reflects an additional assessment of tax, usually resulting from an audit or adjustment.

Question 7

Requesting Transcripts: How can a taxpayer request tax transcripts?

Answer 7

Transcripts can be requested online, by phone, or by mail using Form 4506-T. (IRM 21.2.3.5)

Question 8

Use in Tax Resolution: How are tax transcripts used in tax resolution?

Answer 8

Transcripts are used to assess a taxpayer’s compliance history, verify reported income, and determine tax liabilities and payments. (IRM 5.1.18)

Question 9

Privacy Concerns with Transcripts: What are the privacy concerns related to tax transcripts?

Answer 9

Transcripts contain sensitive information; therefore, they should be handled with caution, following the Privacy Act and IRC § 6103 regarding confidentiality of tax information.

Question 10

Accuracy of Transcripts: How accurate are tax transcripts?

Answer 10

While transcripts provide detailed information, they may not include the most recent updates or pending actions, requiring careful interpretation and verification. (IRM 21.2.3.5)

Question 11

Account Transcript: What does an Account Transcript contain, and when is it available?

Answer 11

Record of account transactions on taxpayer’s account, available back to the 1980s through the current calendar year. Updated weekly.

Question 12

Return Transcript: When is a Return Transcript available, and what are its characteristics?

Answer 12

Available for the current tax year and prior 3 years. Contains most line items from the tax return, created when original return is filed and accepted, does not change if amended.

Question 13

Wage & Income Transcript: What are the two types of Wage & Income Transcripts?

Answer 13

Forms (listing forms and amounts reported) and Summary (listing totals of each income type), available for the prior 10 years.

Question 14

Record of Account: What is a Record of Account Transcript?

Answer 14

Combination Return Transcript and Account Transcript, not updated as frequently as Account Transcripts.

Question 15

Separate Assessment and Civil Penalties: How are these transcripts different?

Answer 15

They are types of Account Transcripts for specific cases, such as split tax liability or Trust Fund Recovery Penalties.

Question 16

TXMOD: What is a TXMOD transcript, and how can it be obtained?

Answer 16

The most detailed account transcript, unavailable electronically, can be acquired through PPS and a fax or FOIA Request.

Question 17

Different Methods to Get IRS Transcripts: Calling PPS: What are the features and limitations of calling PPS?

Answer 17

Can hold for up to two hours, the IRS will fax up to 10 transcripts, the fax can take 5 minutes to 48 hours.

Question 18

Different Methods to Get IRS Transcripts: IRS Get Transcript: How can a taxpayer use IRS Get Transcript?

Answer 18

Instant access if verified ID on the website, transcripts going back 10 years. Also has a USPS option.

Question 19

Different Methods to Get IRS Transcripts: E-Services Transcript Delivery System (TDS): How does TDS work?

Answer 19

Takes 3-5 business days for the 2848 or 8821 to take effect, instant access once granted.

Question 20

Different Methods to Get IRS Transcripts: Local IRS Service Center: What is an alternative to online methods?

Answer 20

Going to a local IRS Service Center, providing instant access.

Question 21

CAF Numbers: What should you be aware of regarding CAF Numbers?

Answer 21

Can be assigned to individuals and businesses, businesses do not have access to the Transcript Delivery System.

Question 22

Code 150

Answer 22

Tax Return Filed Indicates the posting of a tax return for a specific tax period.

Question 23

Code 300

Answer 23

Additional Tax Assessed Shows that additional taxes have been assessed by the IRS.

Question 24

Code 320

Answer 24

Fraud Penalty An indication that a fraud penalty has been added to the taxpayer’s account.

Question 25

Code 421

Answer 25

Examination Adjustment Reflects adjustments made by an IRS examiner during an audit.

Question 26

Code 460

Answer 26

Extension of Time to File Indicates the taxpayer’s request for an extension of time to file a return.

Question 27

Code 550

Answer 27

Assessment of Civil Penalty Represents the assessment of a penalty for various infractions such as late filing.

Question 28

Code 570

Answer 28

Additional Liability Pending/Freeze A freeze code that may be used when the IRS needs additional time to process a transaction.

Question 29

Code 610

Answer 29

Payment of IRS Tax Debt Shows a payment has been made towards an existing tax liability.

Question 30

Code 670

Answer 30

Payment Posted Indicates a payment that has been posted to the account.

Question 31

Code 810

Answer 31

Revision of Previous Assessment Reflects a change to a previously assessed tax, penalty, or interest.

Question 32

Code 826

Answer 32

Credit Transfer Indicates a credit has been transferred from one tax period or account to another.

Question 33

Code 971

Answer 33

Notice Sent Indicates the issuance of an IRS notice, letter, or other correspondence.

Question 34

Code 977

Answer 34

Amended Return Filed Indicates that an amended return has been filed by the taxpayer.