Here is the meaning of IRS code 806 on Tax transcript

IRS Code 806 2023/2024, What Does Code 806 Mean On Tax Transcript

Do you have IRS code 806 on your 2023 tax transcript? Are you struggling to understand what that means and what you possibly need to do?

Just relax and keep reading this guide.

We have actually written this guide to help you address any misunderstandings you may have concerning code 806 on your transcript.

Please note that this post is purely for educational purposes, and we do not claim to have any expertise in taxes, neither do we have any authorization or association with IRS.

According to the Internal Revenue Service Pocket Guide definition, code 806 on your transcript means there was a Credit for Withheld Taxes and Excess FICA.

For example, if you see IRS code 806 W-2 or 1099 withholding on your transcript and it has a date in the future of 6/20/21, it basically means the sum of your withholding, and you claimed it on your return.

You need to note that withholdings are generally collected over the course of the year.

Note also that if you have withholding, then you will see the IRS tax code 806 with a date that is applied to the total.

If you want to understand the tax transcript better, please watch the video below:

What Does Code 806 Mean On IRS 2023 Tax Transcript

If you see code 806 on your 2023 tax transcript, then it simply means an acknowledgment of an efile of your taxes.

IRS Code 806 2023

Source: Claimyr

In summary, code 806 on your 2023 tax transcript indicates what was withheld from your paychecks.

Summing up all credits, including TC 806, and subtracting the value for code 150, the total should be your refund amount.

Please note that withholding is collected throughout the year through the W-2 or 1099 forms, and that is actually a tax paid on time.

If you take a critical look at the withholding amount, that is the total amount your employer deducted from your pay for the year and was sent to the IRS.

Please make sure the withholding amount matches your paperwork from your employer via the W-2 form.

Also, you should be seeing code 846 on your transcript when your refund is sent. And take note here that the withheld amount will not be the refund amount.

If you see a negative withholding amount on the 806 code, then that is excess tax withheld from your employer as well as other sources of income that is subject to withholding.

In plain text, whenever there is a negative amount, it means it’s been credited to your account.

That is the money already paid, so it has been credited to your tax account as already paid.

When it is a positive number, then that is the money you already owe the IRS, in other words, charges to your account.

Is The Code 806 On IRS Transcript Refund?

According to the official IRS master file codes, the transaction code 806 is a credit. What it means is that it credits the tax module for any withholding taxes and excess FICA claimed on the forms 1040 or 1041 return.

The code 806 on your transcript may also be generated by appropriate line adjustment on a DP or Examination Tax adjustment.

Unless there has been an adjustment, the IRS code 806 on your transcript will always appear to correspond to the actual amount of withholding you claimed on your return.

The IRS would be the only agency that can provide you with the most accurate information on any changes made on your tax transcript based upon their review of your return.

That notwithstanding, based upon the attached details on your transcript, Code 806 indicates your return has a credit for income taxes and a possible excess FICA taxes withheld.

If the Internal Revenue Service does make any adjustments to your tax return, then, of course, they will notify you in writing of the changes and will actually give you detailed instructions on how to reply if you disagree with their findings.

What To Do If IRS Code 806 Was Issued On Your 2023 Transcript?

For those who received code 806 on their 2023 transcript, you do not need to do anything.

If you need to do anything, the IRS will let you know.

Related guide: Meaning Of Code 971 Issued.

How DO I Contact IRS For Help In The United States?

Now that you have an overview of what IRS code 806 means on your 2023 tax transcript, you can call IRS for further details if you still need clarifications.

You may contact the Internal Revenue Service (IRS) to get a clearer picture and more details of when you will actually receive your refund by calling this telephone number: 1-800-829-1040.

Please note that the best time to call them is between 7:00 am and 7:00 pm. Please note the closing and opening hours.

For any agency errors like entering the wrong routing number, you can get assistance from the IRS representative.

For further clarifications, please contact the IRS by phone 800-829-1040 (Individuals) and 800-829-4933 (Businesses) from 7 am to 7 pm local time.

Use the table below to find all the IRS codes and their meaning:

List Of All IRS Codes Issued On Transcript

IRS CodeFileD/CTitle
0I/B/EEstablish an Account or Plan
1B/EResequence an Account due to a TIN Change
1EResequence due to Plan  Number change
1IResequence an Account
1B/ETIN Change Failed to Resequence
2EResequence EPMF Merge-Fail
3BDuplicate Tax are not Resequenced
3BBMF Partial Merge
4BBMF Partial Merge
5I/B/EResequenced Account or Plan for Merge
6I/B/EAccount Resequenced to Master File Location
6EMerge Plan Resquenced
7I/BCarrier Transaction
11I/B/EChange EIN or SSN
11EChange Plan Number
12I/B/EReopen Entity Account or Plan
13I/B/EName Change
13EPlan Name Change
14I/B/EAddress Change
15I/B/ELocation and/or   ZIP Code
16I/B/EMiscellaneous Change Entity Codes
17ISpouse SSN
17EChange File Folder Number
18I/BRelease Undeliverable Refund Check Freeze
19I/B/EZIP Code/Area Office Change
20I/B/ECloses Account or Deactivates Account or Delete a Plan
22BDelete EO Submodule
23BReverse the election to lobby
24BElection to Lobby
25No Resequence-SSN
26I/B/EDelete Changed TIN or Old Plan Data
26I/BIMF/BMF Complete Merge
30I/BUpdate Location Codes Out-of- Campus
40I/BDirects Change to Valid SSN
41I/BDirects Change to Invalid SSN
52BReversal of TC 053, 054, 055
53B/EPlan Year Ending Month Change
54BRetained FYM
55BChange or Adopt New FYM
57BReversal of TC 054, 055
58BRejection of Form 8716
59BRejection of Form 1128
60BElect Foreign Sales Corporation (FSC)
61BRevoke Reverses TC 060, 063, 064, or 065
63BFSC Election Received
64BFSC Election Denied
65BFSC Revocation Received
66BTerminate FSC Received
70BChurch Exemption from Social Security Taxes
71BRevocation of Church Exemption from Social Security Taxes
72BDeletion of TC 070 Input in Error
73BCorrection of Erroneous Revocation / Termination
76Indicate acceptance of Form 8832
77BReversal of TC 076
78BRejection of Form 8832, Entity Classification Election
79BRevocation of Form 8832, Entity Classification Election
80IValidates Spouse’s SSN
82BAcceptance of Form 8869
83BReversal of TC 082
84BTermination of Form 8869
85BReversal of TC 084
86BEffective date of revocation
87BReversal of TC 086
90BSmall Business Election
91BTerminate Small Business
92BReverses TC 090, 093, 095,097
93BApplication for Small Business Election
94BApplication for Small Business Denied
95BApplication for Small Business Pending
96BSmall Business Election Terminated
97BApplication for Small Business Pending National Office Approval
98BEstablish or Change in a Fiduciary Relationship
99BTermination of Fiduciary Relationship
100BAcceptance of Qualified Subchapter S Trust (QSST)
101BRevocation of Qualified Subchapter S Trust (QSST)
102BAcceptance of Electing Small Business Trust (ESBT)
103BRevocation of Electing Small Business Trust (ESBT)
110BDesignates Windfall Profits Tax Return to GMF Unpostable System
120I/BAccount Disclosure Code
121EEmployee Plan Characteristics
122EReversal of Employee Plan Characteristics
123EUpdate of Employee Plan Characteristics
125EPlan Termination
126EReversal of Termination
127EData Change
128EAdministrator Data Change
129IHHS Request
130I/BEntire Account Frozen from Refunding
131I/BReversal of TC 130 Refund Freeze
132IReversed TC 130
136BSuppress FTD Alert
137BReverse Supress
140IIRP Delinquency Inquiry
141I/B/EDelinquency Inquiry
142I/B/EDelinquency Investigation
148I/BIssuance of TDA or   Assembly
149I/BReversal of TC 148
150I/B/E/P/ADReturn Filed & Tax Liability Assessed
150IEntity Created by TC 150
151EReversal of TC 150 or 154
152IEntity Updated   by TC 150
154EPosting F5330 Data
155E1st Correspondence Letter Sent
156ESubsequent Correspondence Sent
157ESchedule A
157BForm 5578, Non- Discrimination Certification
159ISettlement Data
160BDManually Computed Delinquency Penalty
161I/BCof Delinquency Penalty
162I/BFailure to File Penalty Restriction Deletion
166I/BDDelinquency Penalty
167I/BCAbate Delinquency Penalty
170I/BDEstimated Tax Penalty
171I/BCAbatement of Estimated Tax Penalty
176I/BDEstimated Tax Penalty
177I/BCAbatement of Estimated Tax Penalty
180BDDeposit Penalty
181BCDeposit Penalty Abatement
186BDFTD (Deposit) Penalty Assessment
187BCAbatement of FTD Penalty Assessment
190I/BDManually Assessed Interest Transferred In
191I/BCInterest Abatement
196I/BDInterest Assessed
197I/BCAbatement of Interest Assessed
200IDTaxpayer Penalty Assessment
201ICTaxpayer Identification Number Penalty Abatement
234BDAssessed Daily Delinquency Penalty
235BCAbates Daily Delinquency Penalty
238BDDaily Delinquency Penalty
239BCAbatement of Daily Delinquency Penalty
240I/BDMiscellaneous Penalty
241I/BCAbate Miscellaneous Civil Penalty
246BDForm 8752 or 1065 Penalty
247BCAbatement of 1065 Penalty
270I/BDManual Assessment Failure to Pay Tax Penalty
271I/BCManual Abatement of Failure to Pay Tax Penalty
272I/B/AFailure to Pay Penalty Restriction Deletion
276I/BDFailure to Pay Tax Penalty
277I/BCAbatement of Failure to Pay Tax Penalty
280I/BDBad Check Penalty
281I/BCAbatement of Bad Check Penalty
286I/BDBad Check Penalty
287BCReversal of Bad Check Penalty
290I/BDAdditional Tax Assessment
291I/BCAbatement Prior Tax Assessment
294I/BDAdditional Tax Assessment with Interest Computation Date
295I/BCAbatement of Prior Tax Assessment with Interest Computation Date
298I/BDAdditional Tax Assessment with Interest Computation Date
299I/BCAbatement of Prior Tax Assessment Interest Computation Date
300I/BDAdditional Tax or Deficiency Assessment by Examination Div. or Collection Div.
301I/BCAbatement of Tax by Examination or Collection Div.
304I/BDAdditional Tax or Deficiency, Assessment by Examination, Div.with Interest Computation Date
305I/BCAbatement of Prior Tax Assessment by Examination Div. with Interest Computation Date
308I/BDAdditional Tax or Deficiency Assessment by Examination or Collection Div. with Interest Computation Date
309I/BCAbatement of Prior Tax Assessment by Examination Div. with Interest Computation date
310IDPenalty for Failure to Report Income from Tips
311ICTip Penalty Abatement
320I/BDFraud Penalty
321I/BCAbatement of Fraud Penalty
336I/BDInterest Assessment on Additional Tax or Deficiency
337I/BCAbatement of Interest Assessed on Additional Tax or Deficiency
340I/BDRestricted Interest Assessment
341I/BCRestricted Interest Abatement
342I/BInterest Restriction Deletion
350I/BDNegligence Penalty
351I/BCNegligence Penalty Abatement
360I/BDFees & Collection Costs
361I/BCAbatement of Fees & Collection Costs
370I/BDAccount Transfer-In
380I/BDOverpayment Cleared Manually
386I/BDClearance of Overpayment
388I/BDStatute Expiration Clearance to Zero Balance and Removal
389I/BCReversal of Statute Expiration
400I/BCAccount Transfer-out
402I/BDAccount Re-Transferred-In
420I/B/EExamination Indicator
421I/B/EReverse Examination Indicator
424I/B/EExamination Request Indicator
425IReversed TC 424
427BRequest Returns from SERFE file
428I/B/EExamination or Appeals Case Transfer
429I/BRequest AIMS Update from MF
430ICEstimated Tax Declaration
430IEntity Created by TC 430
432IEntity Updated   by TC 430
446I/B/EMerged Transaction Indicator
450I/BDTransferee Liability Assessment
451I/BCReversal of TC 450
459BPrior Quarter Liability, Forms 941 and 720
460I/B/PExtension of Time for Filing
462I/B/ECorrection of a TC 460 Transaction Processed in Error
463BWaiver to File on Mag Tape
464BReversal of TC 463
468BExtension of Time to Pay Estate Tax
469BReversal of TC 468
470I/BTaxpayer Claim Pending
471I/BReversal of Taxpayer Claim Pending
472I/BReversal of Taxpayer Claim Pending
474I/B/EInterrupts Normal Delinquency Processings
475I/B/EPermits TDI Issuance
480I/BOffer-in-Compromise Pending
481I/BOffer-in-Compromise Rejected
482I/BOffer-in-Compromise Withdrawn/Terminated
483I/BCorrection of Erroneous Posting of TC 480
488BInstallment and/or Manual Billing
489BInstallment Defaulted
490PMag Media Waiver
494B/INotice of Deficiency
495B/IClosure of TC 494 or correction of TC 494 processed in error
500IMilitary Deferment
502ICorrection of TC 500 Processed in Error
503TC 500 changed to 503 when posting TC 502
510IReleases Invalid SSN Freeze on Refunds
520I/BIRS Litigation Instituted
521I/BReversal of TC 520
522I/BCorrection of TC 520 Processed in Error
524Collateral Agreement Pending
525Collateral Agreement No Longer Pending
528I/BTerminate Stay of Collection Status
530I/BCurrently not Collectible Account
531I/BReversal of a Currently not Collectible Account
532I/BCorrection of TC 530 Processed in Error
534I/BCExpired Balance Write-off, accrued or assessed
535I/BDReversal of Expired Balance Write-off
537I/BReversal of Currently not Collectible Account Status
538BTrust Fund Recovery Penalty Cases
539BTrust Fund Recovery Penalty Case Reversal
540IDeceased Taxpayer
542ICorrection to TC 540 Processed in Error
550I/BWaiver Extension of Date Collection Statute Expires
560I/B/EWaiver Extension of Date Assessment Statute Expires
570I/BAdditional Liability Pending/or Credit Hold
571I/BReversal of TC 570
572I/BCorrection of TC 570 Processed in Error
576IDUnallowable Tax Hold
577ICReversal Of TC 576
582I/BLien Indicator
583I/BReverse Lien Indicator
586BTransfer/revenue receipt cross ref. TIN
590B/I/ESatisfying Trans. Not liable this Tax period
591B/I/ESatisfying Trans. No longer liable for tax for same MFT if not already delinquent
592B/I/EReverse 59X Trans.
593B/I/ESatisfying Trans. Unable to locate taxpayer
594B/I/ESatisfying Trans. Return previously filed
595B/I/ESatisfying Trans. Referred to Examination
597B/I/ESatisfying Trans. Surveyed satisfies this module only
598B/I/ESatisfying Trans. Shelved- satisfies this module only
599B/I/ESatisfying Trans. Returned secured-satisfies this module only
600B/I/ECUnderpayment Cleared Manually
604B/IAssessed Debit Cleared
605B/IGenerated Reversal   of TC 604
606I/BCUnderpayment Cleared
607I/BDReversal of Underpayment Cleared
608I/BCStatute Expiration Clearance to Zero Balance and Remove
609I/BDReversal of Statute Expiration
610I/BCRemittance with Return
611I/BDRemittance with Return Dishonored
612I/BDCorrection of 610 Processed in Error
620BCInitial Installment Payment: Form 7004, MFT 02+33
621BDInstallment Payment Check Dishonored
622BDCorrection of TC 620 Processed in Error
630I/BCManual Application of Appropriation Money
632I/BDReversal of Manual Application of Appropriation Money
636I/BCSeparate Appropriations Refundable Credit
637I/BDReversal of Separate, Appropriations Refundable Credit
640I/BCAdvance Payment of Determined Deficiency or Underreporter Proposal
641I/BDDishonored Check on Advance Payment
642I/BDCorrection of TC 640 Processed in Error
650BCFederal Tax Deposit
651BDDishonored Federal Tax Deposit
652BDCorrection of FTD Posted in Error
660I/BCEstimated Tax
660BCFederal Tax Deposit
661I/BDES payment or FTD Check Dishonored
662I/BDCorrection of TC 660 Processed in Error
666ICEstimated Tax Credit Transfer In
667IDEstimated Tax Debit Transfer out
670I/BCSubsequent Payment
671I/BDSubsequent Payment Check Dishonored
672I/BDCorrection of TC 670 Processed in Error
673Input of a TC 672 Changes an existing TC 670 to TC 673
678BCCredits for Treasury Bonds
679BDReversal of Credits for Treasury Bonds
680I/BCDesignated Payment of Interest
681I/BDDesignated Payment Check Dishonored
682I/BDCorrection of TC 680 Processed in Error
690I/BCDesignated Payment of Penalty
691I/BDDesignated Payment Check Dishonored
692I/BDCorrection of TC 690 Processed in Error
694I/BCDesignated Payment of Fees and Collection Costs
695I/BDReverse Designated Payment
700I/BCCredit Applied
701I/BDReverse Generated Overpayment Credit Applied
702I/BDCorrection of Erroneously Applied Credit
706I/BCGenerated Overpayment Applied from Another Tax Module
710I/BCOverpayment Credit Applied from Prior Tax Period
712I/BDCorrection of TC 710 or 716 Processed in Error
716I/BCGenerated Overpayment Credit Applied from Prior Tax Period
720I/BCRefund Repayment
721I/BDRefund Repayment Check Dishonored
722I/BDCorrection of TC 720 Processed in Error
730I/BCOverpayment Interest Applied
731I/BDReverse Generated Overpayment Interest Applied
732I/BDCorrection of TC 730 Processed in Error
736I/BCGenerated Interest Overpayment Applied
740I/BCUndelivered Refund Check Redeposited
742I/BDCorrection of TC 740 Processed in Error
756BCInterest on Overpayment Transferred from IMF
760I/BCSubstantiated Credit Payment Allowance
762I/BDCorrection of TC 760 Processed In Error
764ICEarned Income Credit
765IDEarned Income Credit Reversal
766I/BCGenerated Refundable Credit Allowance
766I/BCIRS TOP Offset Reversal   w/OTN
767I/BDGenerated Reversal of Refundable Credit Allowance
767I/BDRejected TOP Offset Reversal w/OTN
768ICEarned Income Credit
771BDInterest Reversal Prior to Refund Issuance
772I/BDCorrection of TC 770 Processed in Error or interest netting
776I/BCGenerated Interest Due on Overpayment
777I/BDReverse Generated Interest Due Taxpayer or interest netting
780I/BMaster File Account Compromised
781I/BDefaulted Account Compromise
782I/BCorrection of TC 780 Processed in Error
788I/BAll Collateral Conditions of the Offer Completed
790B/ICManual Overpayment Applied from IMF
792B/IDCorrection of TC 790 Processed in Error
796BCOverpayment Credit from IMF
800I/BCCredit for Withheld Taxes
802I/BDCorrection of a TC 800 Processed in error
806I/BCCredit for Withheld Taxes & Excess FICA
807I/BDReversed Credit for Withheld Taxes
810IRefund Freeze
811IReverse Refund Freeze
820I/BDCredit Transferred
821I/BCReverse Generated Overpayment Credit Transferred
822I/BCCorrection of an Overpayment Transferred In Error
824I/BDOverpayment Credits Transferred to Another or to Non-MF Accounts
826I/BDOverpayment Transferred
830I/BDOverpayment Credit Elect (Transferred) to Next Periods Tax
832I/BCCorrection of Credit Elect
836I/BDOverpayment Credit Elect Transferred to Next Periods Tax
840I/BDManual Refund
841I/BCCancelled Refund Check Deposited
842BCRefund Deletion
843I/BDCheck Cancellation Reversal
844I/BErroneous Refund
845I/BReverse Erroneous Refund
846I/BDRefund of Overpayment
850I/BDOverpayment Interest Transfer
851I/BCReverse Generated Overpayment Interest Transfer
852I/BCCorrection of TC 850 Processed in Error
856I/BDOverpayment Interest Transfer by Computer
860I/BReverses Erroneous Abatement
876IDInterest on Overpayment Transferred to BMF
890IDManual Transfer of Overpayment Credits to BMF
892ICCorrection of TC 890 Processed in Error
896I/BDOverpayment Credit Offset
897I/BCDMF Offset Reversal
898I/BFMS TOP Offset
899I/BFMS TOP Offset reversal or Agency Refund/Reversal
901I/B/EDelete IDRS Indicator
902I/B/ECampus IDRS Indicator
903I/BMaster File IDRS Entity Delete
904I/B/ENotify IDRS Entity or Module not Present
920I/BIDRS Notice Status
922IIRP Underreporter
924IIRP Communication
930I/B/EReturn Required Suspense
932I/BReverse Return Required Suspense
960I/B/EAdd/Update Centralized Authorization File Indicator Reporting Agents File
961I/B/EReverse Centralized Authorization File Indicator
970BF720 Additional Schedules; or F945 liability amounts from F945-A and related dates, F941 liability amounts from Schedule B and related dates
971B/IMiscellaneous Transaction
972B/IReverses Amended/ Duplicate Return XREF TIN/ Tax Period Data
973BApplication for Tentative Refund F1139 Processed Return Filed-8038 Series Return and Additional Filing of Form 5330
976I/ECPosted Duplicate Return
977I/ECPosted Amended Return Posted Consolidated Generated Amended, Late Reply, or DOL Referral
980BW-3/1096 Transaction
982BCAWR Control DLN Transaction
984BCAWR Adjustment Transaction
986BCAWR Status Transaction
990I/B/E/PSpecific Transcript
991I/BOpen Module Transcript
992I/B/E/PComplete or TaxClass Transcript
993I/B/PEntity Transcript
994ITwo Accounts Failed to Merge/ Transcript Generated
995I/BDifference in Validity Status/ Transcript Generated
996B/IFollow-up on Uncollectible
998BUpdate Entity Information

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