Transaction codes are used on IRS tax transcripts to provide information for individual and business filers into what is or has happened with their tax return processing, reasons for potential delays, when a refund will be paid or why it is delayed.
Given the long delays in IRS processing over the last few years and challenges in getting through to a live IRS agent, many taxpayers are turning to their free IRS transcript to see what is happened with their tax return processing and potential refund payment.
Tax Transcript Code 810
You can see a listing of various IRS tax transcript transaction codes in this article, but I am specifically covering transaction code 810 (TC 810) in this article, which many tax filers see after the IRS has completed processing on their regular or amended return.
It is also important to look at the date column to see when the transaction code is posted. You can see this in the transcript screenshot below, where the taxpayer has TC 810 Refund Freeze on 09-07-2022.
The fact this code is out of sequence on the return despite processing having started (TC 150), suggests he or she has been waiting for a while to get their tax return processed. Read on to see what this means going forward and what happens next.
What does Code 810 mean on my transcript?
Unfortunately TC 810 means the IRS has found an issue with the tax filers return and has frozen any additional refund payments. Your IRS account is on hold and any scheduled refund payment will be held up until this is resolved.
The IRS next step is to generally issue a notice explaining why your account/refund is on hold and what additional information or action is needed from your end to process your return. This could also include additional identity verification if your income and credits have significant variance per the transcript screenshot above.
You will see code 971 on your transcript when the letter is issued and you may see a copy of the letter in your IRS account. However you will also receive a formal letter/notice within 30 days from the IRS which you should promptly review and respond to.
Given ongoing tax return processing delays over the last two years it could take 4 to 6 weeks for returns to complete processing after you submit any required information.
Once you are able to respond to or address IRS concerns, your refund freeze/hold will be lifted and payment issued, reflected via code 846 with payment date on your transcript. You may also see a code 811 as discussed below.
Note: You may also see the line with code 150 update along with the 8-digit cycle code (20224205), with a later date as the IRS processes next actions with regards to your return.
What if I see Code 810 and then Code 811?
There are also times with a tax payer will see code 811 (removed from refund freeze) following code 810 and other IRS transcript action codes (571) on their IRS tax transcript, as per the following screenshot.
As the code description suggests, this is a good thing and means that after IRS and your actions (e.g filing an amended return, code 977 and 971) the IRS was able to resolve your tax filing issues and has released your refund for payment.
You will still need to wait to see the line with code 846 (refund issued) to confirm your refund was disbursed to you.
What happens if you see 810 refund freeze, but your transcript also says “No Tax Return Filed”. I would love to receive information on this topic.. Thank You