Are you looking for what IRS code 898 means on your 2022 or 2023 tax transcript?
We have created this IRS guide to help you explain everything you need to know about tax code 898 on your transcript.
Recommended guide: Transaction Code 151 Explained Here.
Table of Contents
What Does IRS Code 898 Mean On Tax Transcript?
Here is the official meaning of the IRS transaction code 898:
According to the IRS Transaction Codes Pocket Guide, it means “FMS TOP Offset“.
If that doesn’t sound clear enough, then let us look at the more detailed explanation by the master file codes.
Code 898 Not-IRS Debt Explained
If you have tax code 898 on your 2023 transcript, then it means IRS took your money to pay a debt you owe.
For example, if you are in debt for, say student loan or child support, then the IRS can use your refund to settle that debt.
If that is the case, then you will see code 898 (refund applied to non-IRS debt) on your tax transcript.
I will advise you to call the Internal Revenue Service, and they should be able to tell you why.
If you are in doubt of any debt, please contact the Bureau of the Fiscal Service on 1-800-304-3107.
They will let you know to whom the debt was owed.
See also: Tax Code 290.
Meaning Of IRS Tax Transaction Code 898 According To Master File Codes
Here is the detailed explanation of the transaction code 898 on your 2022 or 2022 tax transcript:
Treasury Offset Program (TOP) offset initiated by FMS. Posts with the trans date and DLN of the refund from which it originated. It has a memo amount, an Offset Trace Number (OTN), and an XREF SSN. Tax Code 898 reduces the amount of the refund with which it is associated. Reversed by a Tax Code 766 with the same OTN or TC 899 with the same OTN.
Here, FMS stands for Financial Management Service.
It is the main body that administers Treasury Offset Program and Debt Management Services.
It also means if you have any debt offsets, they are responsible for working on them.
I hope it is clearer now.
Great!
In that case, if you have an IRS code 898 Refund applied to non-IRS debt with an amount, you should know you have other tax offsets.
Related article: Meaning Of TC 971 Notice.
What Does Non-IRS Debt Offset On Tax Code 898 Mean
As the name implies, it means a non-IRS debt offset. It can be anything, but in most cases, it is related to student loans, state income tax, child support, etc that you owe.
It is the responsibility of the Bureau of the Fiscal Service to actually process the offsets to the appropriate agency.
For more information, check this guide https://www.irs.gov/irm/part21/irm_21-004-006r.
Check this also: What Code 846 Refund Issued Means.
Can I get my refund back if it was offset With 898?
Here is what you actually need to know about offset refunds:
Your IRS transcript may indicate you are due for a refund.
However, if you owe certain debts under state law, a federal tax debt incurred in the previous year, or if you owe any state agency, then that goes into offset.
What that means is that the IRS will keep part or all of your tax refund to pay your debt.
In that case, you cannot get your refund if it was offset.
Recommended article: Ultimate Guide To Code 570.
How Long Does It Take For A Tax Offset To Be Removed?
How long tax offset notice lasts largely depends on your particular circumstance.
In most cases, you will receive another notice from the Internal Revenue Service about the status of your tax offset with respect to transaction code 898.
It is advisable to contact the IRS representative for them to give you more details as to when the offset will be removed.
Another guide: Find What CPT Code 99214 Means.
Does the IRS notify you of an offset – 2023 Update?
Yes. You will always get a notification from the IRS about tax offsets.
You do not need to panic or worry about that.
If you are expecting a refund and still owe other state agencies, then most definitely, some or all of the refund will be used to pay for those debts (offsets).
In that case, you will be notified.
That is all you need to know about the IRS code 898 on your 2022 or 2023 tax transcript.
Please note that we do not work for the Internal Revenue Service (US) nor do we have any association with them.
Also, we are not tax experts and do not pretend to be one. All information in this tax guide is solely for educational purposes only.
We strongly believe the information we have gathered about IRS code 898 will help many people understand the transaction code on their 2023 tax transcript and even more.
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Thanks. Useful information. Seems a like a lot of tax payers are getting hit with this offset, despite ample notice period.