How to Read Your IRS Transcript

Understanding the transcript layout

An IRS account transcript is organized chronologically. At the top you'll see personal information (name, SSN, address). Below that is a list of transactions in reverse chronological order (most recent first).

Each line shows:

TC (Transaction Code) — Numeric code identifying what happened
Date — When the transaction was posted to your account
Amount — Dollar amount involved in the transaction
Reference number — Internal IRS reference for the transaction

The transcript groups transactions by tax year. Each year is listed separately so you can see exactly what's on file for 2023, 2022, 2021, etc.

Common transaction codes explained

Transaction codes tell you what action the IRS took. Here are the most common ones you'll encounter:

TC 150 — Tax Return Filed

This is the code you want to see. TC 150 means a tax return was filed for that year. If you don't see TC 150 for a year you thought you filed, the return wasn't received by the IRS.

TC 420 — Penalty Assessed

The IRS added a penalty to your account. Common penalties include failure to file, failure to pay, and accuracy-related penalties. Look for the amount to understand the penalty size.

TC 846 — Refund Issued

The IRS sent you a refund. The amount shown is how much was refunded. If you expected a refund but don't see TC 846, the refund may still be processing or was applied to a different year's debt.

TC 570 — Hold on Credit

Your refund or credit is on hold. This typically means the IRS found a discrepancy and is holding money pending resolution. Accounts with TC 570 usually have other holds or notices as well.

TC 290 — Interest Accrual

Interest was charged on your unpaid balance. Interest accrues daily on unpaid taxes. If you see multiple TC 290 entries, interest is accruing multiple times per month, indicating a long-outstanding balance.

TC 120 — Payment Received

You or someone on your behalf made a payment. The amount is the payment received. Multiple TC 120 entries show multiple payments over time.

TC 300 — Statute of Limitations Expires

This marks the expiration date for IRS collection on this tax year. Generally 10 years from assessment. After this date, the IRS cannot legally collect on this debt.

TC 971 — Tax Information Authority

The IRS is exercising an action based on authority. Often used in conjunction with other codes. Usually indicates an adjustment, review, or procedural action.

TC 930 — Notice Generated

The IRS sent you a notice. Used to mark that correspondence was generated. Other codes will tell you which notice (CP, LT, etc.).

Filing dates vs. processing dates

The date on the transcript is NOT the filing date. It's the posting date—when the transaction hit your account in the IRS system.

Here's the timeline:

You file a return — You submit it to IRS (electronically or by mail)
IRS receives and accepts it — 24-48 hours for e-filed returns
IRS processes and posts it — 4-6 weeks from filing to posting to account (can be longer)
TC 150 appears on transcript — This is the posting date, not filing date

If you filed a return on March 1 but TC 150 doesn't appear until April 15, that doesn't mean there's a problem. It means the IRS is processing normally. If you filed March 1 and TC 150 still hasn't appeared by May, something may be wrong.

Reading balance amounts

Most transcripts show a balance at the bottom or right side. This is your current account balance with the IRS.

Balance of $0 — Your account is settled with the IRS
Balance with amount — Amount you owe (or overpaid) the IRS
Negative balance — You're owed a refund (IRS owes you)
Positive balance — You owe the IRS

Balances change as interest accrues daily. A balance today may be higher tomorrow due to interest charges. If you see a balance but no TC 120 (payment) for years, that balance is likely growing with interest.

Penalties vs. interest

These are two separate charges, and understanding the difference matters for your case.

Penalties (TC 420, TC 640, etc.):

One-time charges for specific violations (failure to file, failure to pay, accuracy-related)
Usually appear once on the transcript for that year
Often abatable if you have reasonable cause
Example: 5% failure-to-file penalty assessed on tax year 2021, posted to account once

Interest (TC 290):

Accrues daily on unpaid tax debt
Never stops accumulating unless you pay
Appears multiple times on transcript as it compounds
Not abatable—IRS always charges interest if you owe
Example: TC 290 appears multiple times showing interest accrual over years

If you see multiple TC 420 entries for the same year, the IRS applied multiple different penalties. If you see multiple TC 290 entries, interest is compounding.

What TC 570 (hold) means

A TC 570 code indicates the IRS has placed a hold on credit or refund processing on your account. This is usually temporary, but it prevents refunds or credits from being applied until resolved.

Common reasons for TC 570:

Inconsistency between tax returns (e.g., SSN mismatch, name change)
Outstanding debt on a different tax year
Fraud investigation or identity theft flag
Return filed electronically but verification needed
Dependent claimed on multiple returns

TC 570 is not permanent. It indicates a temporary block while the IRS investigates. You can call the IRS to find out why the hold was placed and what's needed to remove it.

What TC 971 (tax information authority) means

TC 971 indicates the IRS exercised authority based on tax regulations or policy. It's often paired with other codes to show what authority was used.

For example:

TC 971 + TC 670 — Income adjustment made under IRS authority
TC 971 + TC 480 — Substitute for return filed under authority
TC 971 + TC 150 — Return accepted and processed under normal filing authority

TC 971 by itself doesn't tell you much. Look at the codes accompanying it to understand what action was taken.

What TC 846 (overpayment) means

TC 846 shows an overpayment (refund) was issued. This is positive—it means the IRS owed you money and sent it.

The timeline for TC 846:

You file return claiming refund
IRS processes and identifies overpayment (TC 846 appears)
If no holds or offsets, refund is issued within 4-6 weeks
If holds exist (TC 570), refund may be delayed or applied to other debts

If you see TC 846 but never received the refund, check for TC 570 (hold) or if the refund was offset to pay another year's debt.

Status codes and what they indicate

Some transcripts include status indicators at the top or side of the account section:

Account Status: Compliant — Your account is in good standing with no open actions
Account Status: Non-Compliant — You have open requirements or unfiled returns
Account Status: Hold — Processing hold placed on the account
Collection Status: Active — IRS is actively collecting
Collection Status: Currently Not Collectible (CNC) — IRS has suspended collection temporarily

Status codes give you a quick snapshot of your account health. "Compliant" is what you want. Any other status indicates action needed.

When transcripts show work completed

If you paid someone to do tax work, the transcript proves (or disproves) that it was done. Here's what to look for:

Work that WAS completed:

Return filing: TC 150 appears for the year in question with recent posting date
Power of Attorney filed: Transcript may show POA code or notation
Payments made: TC 120 appears with payment amounts and dates
Penalty abatement requested: TC 290 or TC 420 codes may disappear or reduce
Relief application filed: Related codes or notices appear (varies by relief type)

Work that was NOT completed:

They said "filed return": No TC 150 for that year
They said "filed POA": No POA notation and no record on account
They said "made payment": No TC 120 or balance is unchanged
They said "got relief": Account still shows ongoing collection activity

Red flags to watch for

Certain patterns on a transcript indicate problems:

TC 150 missing for a year you believe you filed — Return was not filed or not received
Multiple TC 290 entries with no TC 120 — Interest is compounding but no payments are being made
TC 570 hold that's several years old — Issue was never resolved; account is stalled
Balance growing each month with no explanation — Interest and penalties accumulating; no activity
TC 930 notices appearing but no related codes — Notices sent but actions don't match
Date gaps with no transactions for years — Account abandoned; no action taken
Collection activity (levies, liens) but no recent POA — Professional may not be representing you

If you see any of these patterns, your account needs attention. A compliance review can identify what's happening and what actions are needed next.