Are you looking for what IRS code 977 means on your 2023 tax transcript? If that is the case, then you are in the right place.
This article focuses on what code 977 means on the IRS tax transcript.
Most people become worried when they see code 977 on their tax transcript and when they go to the WMR dashboard.
That should not be the case any longer.
The main objective of this guide is to explain in detail what the IRS transaction code 977 means on the tax transcript.
Please note that this post is purely for educational purposes and does not claim to have any tax expertise. Neither do we have any authorization or association with the IRS.
That being said, you should not rely solely on this guide concerning your taxes since each state has different laws.
Table of Contents
Meaning Of IRS Code 977 According To The Pocket Guide
According to the Internal Revenue Service Pocket Guide, code 977 means Posted Amended Return Posted Consolidated Generated Amended, Late Reply, or DOL Referral.
In other words, it means an Amended Return Filed.
That is the broad meaning of the tax transaction code 977.
Though this is self-explanatory for code 977, let us take a closer look at what it means in detail.
Meaning Of Amended Return Filed On 2023 Tax Transcript
Using the screenshot above as an example, you can see that there is an Amended Tax Filed against the code 977. For the code 971, it says Amended Tax return or claim forwarded for processing.
These transaction codes actually indicate receipt of your amended tax return for the year in question.
When the IRS adjusts your account to result in a refund, the transcript will then be updated with a transaction code 29X and TC 846 with some interest for you.
That is what Amended Tax Filed and code 977 mean on your 2023 transcript.
What Does Code 977 Mean According To The IRS Master File Codes?
Below is the detailed meaning of the IRS tax transaction code 977:
Identifies an input return which contained Condition Code G (Amended), or an IMF 1040X (identified by Block number 200-299). TC 150 is replaced with TC 977 by computer. TC 977 is also systemically generated when a TC 971 AC 010 or 013 are input. An amount posted with TC 977 is a remittance amount and does not reflect adjustment in liability. Any subsequent adjustment will be input via TC 29X or 30X. IMF: If an original return is not posted, CP 29 or 729 notice of amended return is issued 19 cycles after the duedate of the return. Tax module is frozen from offset out and refund until released by the original return (except 1040X).
That is the explanation given to the tax code 977 according to the Master File codes of the Internal Revenue Service.
In simple terms, code 977 means your amended return has been reassigned for further processing.
Please note that tax transaction code 977 does not necessarily mean an audit is being conducted.
Code 977 only means you amended your return, and hence the amended tax return is being assigned for processing.
An audit will only be conducted if the IRS believes that is necessary after careful examination.
If there is anything questionable on the return, you may want to have it checked by an expert and amend it if needed.
However, if nothing is out of the ordinary, just wait for the process to complete.
It happens but not always.
What To Do If I Have An Amended Return On My 2022/2023 Tax Transcript?
Most people get frustrated when they see code 977 on their tax transcripts. But that should not be the case.
At least now that you know what IRS code 977 means on your tax transcript.
Here is what you need to do if you are affected by the Amended Return code.
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.
Please get in touch with the Internal Revenue Service representative for further details in your particular circumstance.
That is all you need to know about the IRS code 977 on the 2022/2023 tax transcript.
Here is the list of other IRS codes and their ultimate guides:
Those are some of the codes you may be interested in knowing the meaning.