IRS Code 846 on Tax transcript – Tax Topic 846 2022

IRS Code 846 on Tax transcript 2022 (Tax Topic 846 2022). Code 846 Refund Issued on Your IRS Tax Transcript. Tax or transaction codes are used on IRS tax transcripts to provide information for individual and business filers about what is currently happening with their tax return processing, reasons for potential delays, when a refund will be paid, or why it was lower than expected (offsets).

There are dozens of codes, but Code 846, Refund Issued, is one you will generally WANT to see on your account tax transcript (under the Explanation of Transactions section) after your return has been through IRS system processing.

Basically, it means the IRS is sending you the overpayment of your taxes – i.e. your refund! So getting this code on your transcript is a good sign and confirmation that your federal tax refund is getting paid.

Tax Topic Code 846 Refund of Overpayment – Refund Issued!

The TC 846 code will appear on your transcript once the IRS has processed your tax return and confirmed that you are eligible for a refund payment. You will see this as the REFUND SENT status on the WMR or IRS2Go app.

Note that the amount will be positive for TC 840 when refunds are issued, versus the negative amounts for tax credits codes, (e.g 766) which are payments the IRS owes you. This can be confusing, but just check your net refund on top of your tax transcript or the figure shown in WMR or IRS2Go.

You may see TC 570 (adjustment) or TC 898 (offset) and 971 (Notice issued) before 846, which reflects additional adjustments the IRS has made before issuing your refund.

IRS Code 846 Date – Ensure Correct Tax Year for Refund Payments

The 846 code can appear several times on your tax transcripts, reflecting the ongoing issuance of IRS refunds during current and prior tax years. So make sure you look at the date (year in particular) on the 846 line to ensure it lines up with the current tax year.

Is the IRS Code 846 Date the same as my Refund Direct Deposit Date?

Generally, the 846 date is when the IRS issues the refund payment confirmation. It could be 1 to 2 days later that you actually receive the actual payment via direct deposit (WMR status = Refund Sent). Paper checks can take up to a week longer to be received.

If your banking information is incorrect, you will still see code 846, but a paper check will be mailed to your home address 4 to 6 weeks after the IRS gets notified of the bounced payment.

Knowing the IRS codes 2022

IRS transaction codes, such as IRS code 846, are used to identify the stages of return processing and review.

The codes specify how actions should be logged on the Master File, which might be one of the IRS’s many electronic tax return processing and checking systems.

To maintain track of taxpayers’ returns, the IRS uses a number of separate Master Files.

  • IMF, or Individual Master File
  • BMF, or Business Master File
  • EPMF, or Employee Plan Master File
  • IRM, or Information Returns Master File
  • IRAF, or Individual Retirement Account Master File

The codes on a taxpayer’s transcript will illustrate the sequence of events that followed the receipt and processing of the return. It may imply that actions were reversed while the return was being processed. In most cases, the codes should be meaningless to the taxpayer.

The numbers and letters are used by the IRS to keep track of the changes made to tax returns year after year. This very IRS code 846 on the transcript is a good example of an IRS code.

When Will I see a 846 Date after IRS processing?

Generally, the IRS says 90% of refunds are processed within 21 days, which is when you should also expect to see code 846 on your transcript.

But given ongoing tax return processing delays over the last two years and depending on your IRS cycle code, it could take 4 to 6 weeks for returns to complete processing.

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