What Does Code 898 Mean On Irs Transcript (2024)

FAQs

What is the 898 IRS code? ›

§898, Taxable Year of Certain Foreign Corporations

For purposes of this title, the taxable year of any specified foreign corporation shall be the required year determined under subsection (c). With respect to which the ownership requirements of paragraph (2) are met.

Transaction Codes (TC) 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.

Your tax return may show you're due a refund from the IRS. However, if you owe a federal tax debt from a prior tax year, or a debt to another federal agency, or certain debts under state law, the IRS may keep (offset) some or all your tax refund to pay your debt.

Prevent an offset

Pay the full amount listed on the Intent to Offset Federal Payments (FTB 1102). Use the payment coupon included in the letter when you send your check or money order. To make a payment online, visit Payment options .

IRC § 898 requires certain controlled foreign corporations (CFCs) to adopt the same tax year as their majority U.S. shareholder. This provision was enacted to reduce the opportunity for income deferral.

If the IRS is reviewing your return, the review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.

Tax transcript code 846 Refund Issued on your tax transcript means that the IRS has issued you a refund on your tax return. Tax Transcript Code 846 Refund Issued means that ...

Code 420 on your tax transcript means that your tax return has been pulled for an examination or audit. You should expect a letter from the IRS asking for supporting documents or additional information related to your tax return within a few weeks.

Which IRS transcript shows refund date? The cycle code on your tax transcript signifies that the IRS has received your return and is currently reviewing it. It consists of six digits, with the first four indicating the year of processing and the fifth and sixth representing the week.

BFS will send you a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. BFS will notify the IRS of the amount taken from your refund once your refund date has passed.

How will I know if my refund was not approved? ›

The most convenient way to check on a tax refund is by using the Where's My Refund? tool on IRS.gov. Taxpayers can start checking their refund status within 24 hours after the IRS acknowledges receipt of the taxpayer's e-filed return.

It will generally mail you a notice if there is a problem with your return. An IRS agent may call you or visit your home, but usually only after sending several letters first. When an e-filed return gets rejected, the IRS will often let you know within a few hours.

If a taxpayer refund isn't what is expected, it may be due to changes made by the IRS. These changes could include corrections to the Child Tax Credit or EITC amounts or an offset from all or part of the refund amount to pay past-due tax or debts. More information about reduced refunds is available on IRS.gov.

You generally cannot stop a tax refund offset. The IRS service center processing the return will likely not honor the request. However, the documentation submitted with the tax return can help with other interactions with the IRS. This first option presupposes that the taxpayer knows of their Federal or other debt.

Overall, an IRS Hardship Refund Request serves as a mechanism for taxpayers experiencing severe financial hardship to seek relief from the burden of withheld funds and address immediate financial needs.

If your debt meets submission criteria for offset, BFS will reduce your refund as needed to pay off the debt you owe to the agency. Any portion of your remaining refund after offset is issued in a check or direct deposited as originally requested on the return. BFS will send you a notice if an offset occurs.

The debtor is notified in advance of any offset action to be taken. Individuals may call the TOP Interactive Voice Response (IVR) at 800-304-3107 to determine the contact information for the agency or state they owe.

Refund holds

The IRS usually holds the refund for six months to allow you to explain or file your return. After the six-month hold, if the IRS doesn't receive a return, the IRS may make an assessment through the Automated Substitute for Return program.

In California, both state and/or federal refunds can be offset for delinquent child support. If you've received a notice that your refund may be diverted, there are several actions you can take, including contesting the state's action.