Tax season brings questions, anxieties, and a constant vigil over tax transcripts and the IRS’ Where’s My Refund (WMR) tool.
However its important to realize that your tax transcript and the WMR or IRS2Go mobile app for checking you refund status are two different applications. But they are interlinked when it comes to IRS processing and getting insight from when your refund is approved to when it will be sent/paid.
What does code 846 mean?
This 846 three-digit code on your transcript signifies “Refund Issued.” When you see it on your transcript, it means the IRS has approved your tax refund and initiated the transfer of funds. See more in this article.
The accompanying date indicates when the money was sent, either electronically or via paper check.
The Connection of Code 846 with WMR or IRS2Go Refund Approved status
WMR and IRS transcripts updates occur on certain days (see more here on cycles)
Code 846 is basically The Trigger for “Approved” Status and marks the date for refund issuance: When code 846 appears on your tax transcript, it signifies that the IRS has officially approved and issued your refund.
This code reflects the trigger for a process within the IRS system that eventually moves the WMR tool from the “Refund Approved” to “Refund Sent” status, indicating that your refund is on its way.
Here is a general sequence on what is happening the behind the scenes:
- Refund Approval: The IRS approves your refund and generates code 846 on your transcript.
- Data Transfer: Information about your refund, including code 846, is transferred to the WMR system.
- WMR Update: The WMR tool receives the data and prepares to reflect the “Approved” status.
- Scheduled Updates: WMR updates occur on specific days (typically Saturdays for weekly filers and Wednesdays for bi-weekly filers).
- Status Change: During the designated update, WMR displays “Approved” for your refund.
Factors affecting timeline with your refund payment
Your refund should be paid quite quickly (generally 1 to 2 business days at most) after it is approved. But processing delays within the IRS or banks can cause delays in getting your direct deposit refund payment.
Transcripts also often reflect code 846 before WMR updates, as they update more frequently. WMR updates also occur on different days based on your filing cycle (weekly or bi-weekly).
Also allow 7-14 business days for delivery of a paper check after the issuance date on your transcript.