Code 846 and the PATH Act Refund Hold: What EITC and ACTC Filers Should Expect in 2027

Code 846 is the line on your IRS transcript that actually confirms your refund — not the “processing date” near the top, which is just the IRS’s internal estimate of its next update on your account. That distinction matters most if you’re waiting on a refund that includes the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), because those refunds go through an extra, legally required hold before 846 can even post.

I get a version of this question every filing season. Below is how to tell processing date and refund date apart, exactly how the PATH Act hold plays out for EITC/ACTC filers, and what it means specifically for the 2026 tax return you’ll file in early 2027.

Code 846 vs. the Processing Date: The Actual Difference

The processing date on your transcript is tied to your IRS cycle code — it’s the IRS’s internal estimate of the next date it expects to update your account, not a promise about your refund. If the IRS finishes by that date, it can end up matching your refund date, but that’s a coincidence, not a guarantee.

Code 846 (Refund Issued) is different. That’s the line with an actual dollar amount and a date, and it means the IRS has approved and scheduled your refund. Once 846 posts, WMR/IRS2Go typically updates to “Refund Sent” within a day or so, and direct deposits usually land within a few business days of the 846 date.

For the full rundown of transcript codes like 150, 806, 766, and 768 with annotated examples, see my companion guide on decoding your IRS transcript.

How the PATH Act Hold Works for EITC and ACTC Filers

By law, the IRS can’t issue a refund that includes the EITC or ACTC before mid-February — and that hold applies to your entire refund, not just the portion tied to the credit. The rule exists to give the IRS time to cross-check the income and dependent information on your return against what employers and other filers actually reported, catching fraudulent claims before money goes out.

The statutory trigger date is February 15. When that date falls on a weekend or federal holiday, the hold lifts on the next business day instead — which is exactly what happens in 2027.

February 15, 2027 is a Monday, and it’s also Presidents Day (Washington’s Birthday), a federal holiday. That pushes the PATH hold’s actual lift date to Tuesday, February 16, 2027 for anyone filing early in that season. It’s a small shift, but worth knowing if you’re tracking the calendar closely.

Once the hold lifts, two dates matter and they aren’t the same day: the date your WMR/IRS2Go status and transcript update to confirm the hold has been released, and the date your refund is actually paid. Per the IRS’s own guidance, most early EITC/ACTC filers should see an updated WMR status by February 21, with refunds typically arriving by March 2 for e-filers using direct deposit with no other issues on the return — see the IRS’s official refund-timing page for the current guidance. For the full historical PATH release-date pattern and calendar, see my PATH Act refund delays guide.

What Your Transcript Shows While You’re Waiting

If your processing date has come and gone with no 846 on your transcript, look for these codes instead:

• Code 570 — a hold has been placed on your account, often for a discrepancy in reported income or a credit that needs verification.
• Code 971 — the IRS sent you a notice or letter, usually explaining what triggered the hold or requesting more information.
• Code 420 — an examination (audit) has been opened on your return.
• Code 898 — part or all of your refund is being redirected through the Treasury Offset Program to cover a past-due debt like defaulted student loans or back child support.

None of these codes mean your refund is gone — they mean the IRS needs to finish something before it can post 846. During PATH season specifically, code 570 showing up right after the hold lifts is common and usually just means your EITC/ACTC verification is still running its course.

Two Examples for the 2027 Filing Season

Priya files her 2026 tax return in late January 2027 and claims the EITC. Her transcript shows a processing date of February 23, but by March 1 she still has no 846 — instead, code 570 appeared on February 24. That means her return is under a manual review; she’ll need to wait for either a 971 notice explaining why, or an 846 once the hold clears.

Marcus files his 2026 return in early February 2027 without any PATH-affected credits. His processing date and his 846 date end up being the same day, because his return sailed through without additional review — a common outcome for simple returns filed outside the EITC/ACTC hold.

Common Issues to Watch Out For

• Treating the processing date as a guarantee. It’s an internal IRS estimate, not a commitment — plan around your 846 date instead.
• Panicking at the first sign of code 570 during PATH season. It’s common while the IRS verifies EITC/ACTC claims and usually resolves within a few weeks; it doesn’t automatically mean an audit.
• Checking your transcript multiple times a day. Transcripts update on a fixed daily or weekly cycle based on your cycle code — checking more often just wastes time.
• Confusing your cycle code’s weekly update day with your refund date. A weekly update (cycle codes ending in 05) tells you when your transcript refreshes, not when you’ll be paid. See when WMR, IRS2Go, and your transcript actually update for the day-by-day pattern.
• Assuming a PATH-season delay means something was done wrong. Most of it is routine income/dependent verification, not a sign of a mistake on your return.

Looking Ahead: 2027 Filing Season

The headline change for 2027: because February 15 falls on Presidents Day, the PATH hold on EITC/ACTC refunds lifts on Tuesday, February 16, 2027 instead of the 15th. Beyond that shift, expect the same basic pattern as every other year — a status-update wave around three to five days after the hold lifts, then a direct-deposit wave following roughly a week to ten days after that for the earliest batch of PATH-affected filers.

The IRS typically doesn’t confirm the exact 2027 processing calendar until shortly before the season opens (see the current IRS refund schedule and direct deposit calendar for the latest confirmed dates as they’re published). If your transcript is showing N/A instead of any of these codes, that usually means your return hasn’t posted to the IRS master file yet — see what an N/A transcript means for that specific situation.

I’ll publish an updated PATH schedule post once the IRS confirms the 2027 processing calendar in full.