Are you struggling to understand the meaning of IRS code 290 on your 2022 or 2023 tax transcript?
You do not need to worry, as we have created this guide to help you understand the tax code on your transcript.
If you had IRS Code 290 Additional Tax Assessed on your transcript, then you do not need to panic.
But why?
It is because there is no cause for worry.
We have received countless messages from some of our readers who also received the code on their transcripts.
Some of them even took to Reddit for answers, and I feel the frustration you may be going through if you are also in the same situation.
It doesn’t matter if yours (stimulus check) has an amount with the 290 code or just $0.00.
The code could mean a lot.
Please note that this post is purely for educational purposes and we do not claim to have any expertise in taxes, nor do we have any authorization or association with IRS.
That being said, you should not rely solely on this guide concerning your taxes since each state has different laws.
We have created an ultimate guide on these tax transaction codes: 806, 766, 9021, and 570. Check them out.
Read also: What Code 971 Means.
Table of Contents
Definition Of Tax Code 290 According To IRS Master File Codes
According to the Internal Revenue Service Master File Codes, here is the definition or meaning of IRS code 290 on the 2022 or 2023 tax transcript:
Additional tax as a result of an adjustment to a module that contains a TC 150 transaction. TC 290 with zero amount or TC 29X with a Priority Code 1 will post to a —Lfreeze module.
Generates assessment of interest if applicable (TC 196). Releases the following freezes: O—Reactivated Account, —A Duplicate Return, —K Refund Hold, W—470 hold, —R 570 hold, —F Advanced Payment, —X Manual Refund, P—841/720, —G Math Error, —J Math Error/TDA, R— RPS, B— Subsequent Payment, —Q WPT, 680 Hold (See Freeze Code Section for specific conditions).
TC 290 with zero amount blocked 96X indicates a taxpayer penalty abatement request was considered and rejected. Reversal is TC 290 blocked 97X.
It can be used for Civil Penalty assessments on MFT 30, 55, and 13.
IMF: Additionally releases 680 hold and freezes for Invalid SSN or Account Reactivation.
Needs reason and source codes. May need priority and/or hold codes.
BMF: Releases freezes for 842. TC 290’s, MFT 10, Blocking Series 500-519, have been designated for FUTA use only.
A Reference Code of 998 or 999 is generated by BMF files respectively from Alpha Code “T” or “W” along with a valid state code on FUTA Adjustments. May need priority and/or hold codes.
IMF: If a TC 888 is input without a TC 886, and the Taxable Income (TXI) on the tax module is greater than .00, then the TXI is automatically adjusted by the TC 888 amount. The TXI on the module will not be adjusted below zero.
TC 290 blocked 180-198, 780-789, 960-969, or 980-989 (MFT 55: Blocking Series 530-539, 960-969, and 980 989. Exception: prior control is doc code 54 blocked 59X), will generate a CP55 Notice to Re-file Return.
Re: Form 1042, 290-to increase tax liability, no reference number is used, 291-to decrease tax liability, no reference number is used, 150-reference number “011” to update the gross income paid, See section 8 for credit reference adj. codes.
That is the raw explanation from the Internal Revenue Service Master File Codes.
Does it make any sense to you?
Don’t worry if it doesn’t at first glance.
I will make it simple for you in a few minutes.
What Does IRS Code 290 Mean On 2022 Or 2023 Tax Transcript?
From the above definition of the IRS code 290 deduced from the master file codes, you can clearly see that there are various scenarios or instances where the 290 code will be issued.
But let me make it easy for you to understand.
In simple terms, the IRS code 290 on the 2023 tax transcript means additional tax assessed.
It may mean that your Return was selected for an audit review, and at least for the date shown, no additional tax was assessed.
The tax code 290, “Additional Tax Assessed” usually appears on your transcript if you have no additional tax assessment.
When you get the 290 code on your transcript, you may either have an amount next to it, or $0.00 will appear there.
How Does A Normal Transcript With Code IRS Code 290 Look Like?
In simple terms, when you see code 290 on your 2023 transcript, it means Additional Tax Assessed.
You may not owe additional tax, and this is particularly true if you see $0 on the transcript.
If the amount is more than $0, then you may have to contact the IRS or maybe wait for a letter in the mail with an explanation of the change in your return.
Please, if you actually agree with the amount owed, then you have to make the payment ASAP.
There are a plethora of reasons for you to have additional taxes. A few of such reasons are incorrect calculations or an audit on your return.
For those who had a hold on your account and that was lifted, you will also see code 290 on the transcript, but that will show $0, which means your return was reviewed, but you were not charged any additional tax.
Meaning Of Code 290 On Tax Transcript
A normal 2023 IRS tax transcript for someone eligible for stimulus checks will look something like the following:
Code Explanation Cycle Date Amount
290 Additional Tax Assessed 20221403 02-24-2022 $0.00
(dates shown might be a bit different if you actually got a check or a prepaid card instead of direct deposit):
Please note that the date might be somewhat different in a real situation, especially if you got a prepaid card or a check either than a direct deposit.
Here is what you need to know about the sample IRS tax transcript with the transaction code 290:
The transaction code is 290.
The meaning of code 290 on the tax transcript is “Additional Tax Assessed”.
The 20221403 on the transcript is the Cycle.
From the cycle, 2022 is the year under review or tax filing.
The number 14 is the IRS Cycle Week.
Finally, number 03 is the Processing Day of the week.
IRS code 290 with $0.00 basically means a freeze or hold has been lifted.
Who Can Get Transcripts Online?
The “IRS Get Transcript tool” is mainly available only to individual taxpayers. Business taxpayers can call the IRS representative at (800) 829-4933.
If you are a tax professional, then you can call the Practitioner Priority Service on this line (866) 860-4259, option 4, to request IRS transcripts.
What Do I Do If I Have Transaction Code 290 On My IRS Transcript 2023?
For those who have IRS code 290 on your 2022 or 2023 tax transcript, I strongly suggest you call the Internal Revenue Service representative for assistance.
They will be able to give you all the details you need about your account.
Alternatively, you can consult a reliable tax professional who can actually review all your documentation and obtain a complete transcript from the Internal Revenue Service.
For further clarifications, please contact the IRS on phone 800-829-1040 (Individuals) and 800-829-4933 (Businesses) from 7 am to 7 pm local time.
In most cases, you do not need to worry, especially if you have no amount in the money column and all you have is $0.00.
What Does Additional Tax Assessed Code 290 Mean
As you may have seen from the sections above, Code 290 On IRS Transcript 2022 means Additional Tax Assessed, and that simply means you do not have additional tax assessment.
To get more details on that, you need to contact the Internal Revenue Service for them to take a critical look into your situation and offer you the appropriate explanation as to why you have the Additional Tax Assessed code 290 on your 2022/2023 tax transcript.
Reduced Or Removed Prior Tax Assessed
In certain instances, some people have reported that they have “Reduced or Removed Prior Tax Assessed” on their transcript.
This appears to be the case for those who have “Refund Issued” on their tax transcript which appears near the bottom as well as “Reduced or Reduced Prior Tax Assessed“.
Please, if you need more information with regards to “Reduced or Removed Prior Tax Assessed” on your 2022/2023 tax transcript, you need to contact the Internal Revenue Service for more information.
That is all you need to know about IRS code 290 on your 2022/2023 tax transcript.
Once again, each situation is fact-specific, and it is virtually impossible for anyone to evaluate any issue without a comprehensive consultation and review of all the available facts and documents at issue.
