Overpaid Tax – What Happens To Overpayment of Taxes? Overpaid tax amounts to an interest-free loan to the IRS. Normally, an overpayment of taxes is refunded automatically when filing your taxes. There are some common things that often lead to overpaying taxes. Maybe, you are better off avoiding them. Sometimes, […]
Taxes
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IRS Letter 2645C – What It Means IRS Letter 2645c is an interim letter from the IRS saying they need more time (45-60 days) to review the documents or information you submitted. The Internal Revenue Manual refers to them as “interim letters” (IRM 4.19.23). The letter merely states that the […]
IRS Reference Number 1242 – IRS CP05 & CP05A Notices IRS reference number 1242 indicates a discrepancy and the account is frozen pending review of supporting documentation from the taxpayer or third parties. In most instances, an IRS CP05 Notice is issued in which the IRS notifies the taxpayer in […]
Tax Code 570 on IRS Transcript 2022-2023 Tax Code 570 on your IRS Transcript means additional reviews are required and your return processing and refund have been temporarily frozen. Generally, you will see Transaction Code 570 (TC 570) on your tax transcript under the Explanation of Transactions section. This cycle […]
Tax Code 846 on IRS Transcript 2022-2023 Tax Code 846 on your IRS Transcript indicates confirmation that your federal tax refund is approved and in process for payment. However, you will likely see several transaction codes prior to the 846 IRS code. For example, before or after your 846 code, […]
Tax Code 768 on IRS Transcript 2022-2023 Tax Code 768 on your IRS Transcript indicates that an Earned Income Credit has been claimed and posted to your account in the IRS Master File. The Earned Income Tax Credit (EITC) provides a tax benefit to low- to moderate-income workers and families. If […]