Transaction Code 570 and Delayed Tax Refunds

transaction code 570

Transaction Code 570 Usually, around two weeks into tax season, we notice a surge of questions about the timing of refunds and IRS Transaction Code 570 that shows up on an IRS account transcript. Sometimes it feels like the tax season is progressing more slowly than previous years. Taxpayers see others getting updates through the … Read more

Daily Account vs. Weekly Account

Explain it like I’m 5… Tax returns are processed by the IRS in cycles based on the “type” of account they have. For many people, transactions can be processed any day of the week. But for some people the IRS only processes and posts to the IRS master file (IMF) once per week. This is … Read more

Transaction Codes on IRS Account Transcript

Transaction Code Overview Transaction Codes (TC) sometimes called transcript codes consist of three digits and appear on your IRS account transcript. A transaction code is used to identify when an action posted to your tax account Master File while your tax return is being processed. They help to show a history of actions taken by … Read more

Tax Topic 152

Tax Topic 152

The Truth About Topic 152 Tax Topics are displayed when people check Where’s My Refund on the IRS website. The most common is Tax Topic 152. These tax topics are a way that the IRS communicates with taxpayers about the status of their tax refund. Rest assured, Tax Topic 152 is not something to be … Read more

2024 IRS Transcript with 846 Refund Issued code

2024 IRS Transcript with 846 Requesting your IRS Transcript online at irs.gov is the fastest way to get a transcript. Request an account transcript to look at the codes. Read more: How to check and read your IRS transcript. Join the Live Discussion 2024 IRS Transcript with 846 – Cycle Code 20240402 2023 IRS Transcript … Read more

IRS Reference Code Numbers

irs reference numbers

What do the IRS Reference Numbers Mean? The below codes are IRS reference numbers that you might see when you check the status of your tax refund on Where’s My Refund? These are different than transaction codes on and Account Transcript. If you check the status of your tax refund and see a reference code, you should … Read more

Tax Refund Offset – Tax Topic 203

offsetDo you have a tax refund offset or Tax Topic 203 appearing when you check the WMR?

Topic 203 – Refund Offsets for Unpaid Child Support, Certain Federal and State Debts, and Unemployment Compensation Debts

Recently the topic of a tax refund offset came up in our forum.  There seems to be a lot of questions about what the IRS can take from a tax refund, and how it all works.  So, after doing a little research for some answers, here’s what we’ve come up with so far. First, the department that actually handles the offsets is Financial Management Services (FMS).

FMS is responsible for collecting delinquent debts and forwarding them to the agency to which they are owed. In most cases, FMS will send a letter prior to the offset to notify you that your refund is in danger of being offset. The letter includes both the name and Social Security number of the taxpayer for which the refund is being offset, as well as the organization to which the offset is being forwarded and the amount of the offset. If you do not receive the letter, however, call FMS to inquire as to the status of your income tax.

The phone number you should use to find out if you have an offset is: 800-304-3107.  I called this number myself just to see how it works.  Basically it will ask you for your social security number and run a search to see if there are any debts or offsets against you.  The message also states that the hotline is updated daily. If you’d like more information on the FMS, this is the link that was used for the above information: How to Check Your Income Tax Offset Refund Amount.

So, now that we have a better understand of who collects any offsets, you may be wondering what exactly could be taken from your tax refund.  The following list of was found here:

What Debts Can Be Taken From Your Federal Taxes?

Federal Debts The IRS pays itself first, so federal tax debts take precedence over other types of debts when it comes to offsetting your tax refund. If you failed to pay taxes due in previous years or you owe money to the IRS for any reason, the agency will partially or fully offset your refund to collect these funds.

Non-tax Federal Debts If you are up-to-date on your federal taxes, but you owe money to any other federal agency, the IRS can take money from your tax refund to satisfy these debts. Federal agency non-tax debts include past due or defaulted student loan payments, payments on HUD loans and any fines, penalties or fees due to any federal department. If you’ve accepted overpayments or fraudulent payments on Social Security or disability benefits or other federal insurance programs, these debts may also cause your refund amount to be reduced.

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