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Code 150 on IRS Transcript – What Does It Mean?

Tax Code 150 on IRS Transcript 2022-2023

Tax Code 150 on IRS Transcript Tax Code 150 on an IRS Transcript means the return is received, entered into the IRS master file, and is under process within the system. Many taxpayers check their IRS account tax transcript for an update on their tax return processing and refund status.  This can be helpful when no information comes up using the IRS WMR tool or IRS2Go app. The IRS officially states that tax transcripts are not meant to assist you in determining specific refund dates.  Nor, are they designed to determine how much you will receive as a refund for the current tax year.  However, recent tax seasons show that tax transcripts can, in fact, provide useful information. Especially if you are experiencing long delays and are unable to obtain reimbursement information through the regular routes.

IRS tax transcripts, once available on your account, can be a useful source of information.  Particularly, for updates on your return and potential processing delays beyond 21 days due to other factors. You can obtain quite a bit of information that WMR/IRS2Go or even an IRS agent does not disclose.  This information is available simply by deciphering and using the transcript transaction numbers, cycle codes, and descriptions. Typically, your tax transcript will update on a frequent basis during tax season.  So, use it in conjunction with the WMR/IRS2Go refund trackers, as well as any official communication or updates.

Transaction Codes on IRS Transcript 2022-2023

Transaction Codes (TC) are made up of three digits. They are used to identify a transaction that has been received and is being processed.  Also, they keep track of actions posted to a taxpayer’s account on the Master File. Every transaction processed by automatic data processing (ADP) must contain a Transaction Code. The information resource dictionary system (IDRS) is the United States Federal Information Processing Standard used to capture metadata during a system life cycle.  IRDS-specific transaction numbers are also supplied. These codes serve a number of functions:

  • Maintain Accounting Controls of debits and credits.
  • Cause the computer at ECC to post the transaction on the Master File.
  • Allow report compilation.
  • Identify the transaction when a transcript is extracted from the Master File.

Transaction Codes (TC) consist of three digits. They are used to identify a transaction being processed and to maintain a history of actions posted to a taxpayer’s account on the Master File. Every transaction processed by ADP must contain a Transaction Code to maintain Accounting Controls of debits and credits, to cause the computer at ECC to post the transaction on the Master File, to permit compilation of reports, and to identify the transaction when a transcript is extracted from the Master File. Transaction codes that are unique to IDRS are also included. (Source: irs.gov)

Transaction Code 150 – According to IRS Section 8 Master File Codes

This TC 150 when posted to the Entity Transaction Section indicates the Master File Entity was created from the posting of the return. (Source: irs.gov)

IRS Tax Transcript – Reviewing Your Refund Status

The IRS recommends using specific tools to find out the status of your official government payments.  For example, the official IRS information tools like Where is My Refund (WMR), IRS2Go Mobile App, or Your IRS Online Account.  While these tools are helpful, they only provide limited information about current processing and payments.

Another useful resource is your IRS tax transcript.  This sometimes takes time to display the most recent changes.  However, it provides a lot more information in the transaction details area via the numerous tax codes. There is nothing improper about requesting your IRS Transcript – and it’s free. Further, it can provide assurance if you haven’t received an update in a while or simply want additional information. Given that it’s free, it’s worth downloading for some clarification in the event of a long delay. Obtaining your most recent free tax transcript makes sense.  Especially, if you have hit a wall or dead end with the other IRS tools and apps. Your transcript might provide you with additional information and clues about when you might receive your return.

Transaction Code 150 on IRS Transcript – What Does it Mean?

Tax Code 150 on an IRS Transcript means the return is received, entered into the IRS master file, and is under process within the system. Once entered into the system, the IRS claims that 9 out of 10 returns are completed within the 10-21 day timeframe.

Tax Topic 152 (TC 152) is an IRS code usually indicating that a return is delayed and will take longer than the typical 21-day processing deadline. There are dozens of codes and topics, but one of the most common ones seen after filing a return is Tax Topic 152 (TC 152).

What Does N/A Mean on your IRS Transcript?

When attempting to retrieve the current year’s tax transcript, many taxpayers report seeing a N/A, meaning Not Available. This is despite the fact that they submitted a return several days or weeks earlier. Naturally, this causes concern over the status of a return or refund.  Moreover, it causes confusion about whether or not the IRS has received or is processing the tax form. However, seeing a N/A is primarily due to an internal IRS processing delay, particularly during tax season. Every year, especially around February and March, N/A appearing on an IRS tax transcript is a common occurrence.

N/A simply indicates that the IRS systems have not entered your return into the IRS master file for processing.  As a result, no tax transcript updates for the current tax season have been generated. Once your return has been allocated to a processing batch, your transcript will populate and be available overnight.  If your return encounters no glitches with normal processing, a refund direct deposit date should be posted as well. However, processing time may be extended if your return contains mistakes or changes. However, individuals who have no errors should remain calm, nothing is wrong.  Once your return is entered into the IRS system, the N/A will be updated to transaction code 150.  This means the return is received, a file has been opened and entered within the IRS Master File.  At this point, your return is being processed.

Transaction Code 150 on IRS Transcript – What Does it Tell You?

For taxpayers who file online and choose direct deposit, the IRS issues the majority of refunds in less than 21 days. However, some returns contain problems or require more inspection, and these may take longer to complete. If you can check your transcript online, you will learn why you are being reviewed by the tax codes that will be published. If your return is being investigated, this could be one of the reasons your refund is being delayed. The following are common reasons why returns are pulled and refunds are delayed. These will be coded on your transcript.

Things That Can Delay a Refund:

The IRS will contact taxpayers by mail if it needs more information to process their returns. The fastest way to get a tax refund is by filing electronically and choosing direct deposit. People who don’t have a bank account can learn about opening an account at an FDIC-insured bank or the National Credit Union Locator tool. (Source: irs.gov)

Up Next: Tax Topic 152 – Where’s My Refund?

Tax Topic 152Tax Topic 152 (TC 152) is an IRS code usually indicating that a return is delayed and will take longer than the typical 21-day processing deadline. There are dozens of codes and topics, but one of the most common ones seen after filing a return is Tax Topic 152 (TC 152). The IRS handles tax returns in accordance with a set of standards and instructions. These are formalized into tax codes.  These codes are used throughout multiple internal systems to process returns, manage mistakes, and ultimately pay refunds. The codes are simplified for individual and business tax filers.  They are designed to provide insight and information about what is currently happening with taxpayers’ tax returns.  For example, why there are processing delays when a refund will be paid.  Or, why the refund amount is lower than planned (offsets).

Tax Topic 152 is a general or informational message on the timetable and potential delays for refund processing. This appears on WMR/IRS2Go once a return has been received by the IRS.  It indicates the return is being processed or delayed for some reason.  Initially, the tax filer is not required to take any other actions. However, if the IRS completes processing, the updated message and code may have various ramifications.  For example, setting the expectation that your return may be delayed for a variety of reasons.

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