Code 826 showing on transcript but payment plan doesn't start until September? Also still verifying my 2021 return

The 826 code means "Overpaid tax applied to non-IRS debt" - basically the IRS is planning to send your refund to offset another government debt (like student loans, state taxes, child support, etc). This is separate from your payment plan. The payment plan is for taxes you owe, while code 826 indicates money the IRS would have refunded to you is being sent elsewhere. I'd recommend calling the IRS Treasury Offset Program at 800-304-3107 to find out exactly what debt they're applying your refund to. This shouldn't affect your payment plan arrangement starting in September, but it does mean you won't get that refund amount.

Hey there! I was in almost the same situation last month - multiple codes, verification issues, and payment plan confusion. After spending hours trying to piece together what was happening by googling code meanings and asking around, I finally used taxr.ai and it explained my whole transcript in plain English. It showed me exactly what each code meant for MY specific situation, not just generic definitions. It was insanely good! I use it every week now to check if there are any updates. Seriously check out https://taxr.ai - way better than playing detective with random forum posts and IRS jargon.

After dealing with the same issue for weeks and getting nowhere with the regular IRS number, I finally got through to an actual agent using the Claimyr app (claimyr.com). They called me back within an hour and the agent explained that the 826 code wouldn't affect my payment plan at all. Turns out the refund offset was going to an old state tax bill, but my federal payment plan was still valid starting in October. The agent also helped expedite my document verification process. Talking to an actual human got my questions answered in 15 minutes after weeks of stress.

went through this exact thing last year. the 826 code is for ur refund being applied to other debt, but ur payment plan is a totally seperate thing. as long as u make ur payments on time when they start in september ur good. the verification stuff usually doesn't impact payment plans, they just run parallel. Just call the offset number the other commenter mentioned to see what debt they're taking ur refund for.

Check if the verification for your 2021 return could potentially result in you owing LESS. If there's a chance your verification documents might reduce your tax liability, you might want to request the IRS to hold off on finalizing your payment plan until that's resolved. Otherwise you might end up paying more than you need to.

The IRS is such a joke. They can take your money instantly with an 826 code but make you wait months for refunds. I had the same thing happen and was on hold for 3 HOURS trying to get answers. Good luck getting anyone competent on the phone 🤡

Something nobody mentioned yet - if the 826 code is for federal student loans and you're eligible for the SAVE plan or other forgiveness programs, you might be able to request a refund of the offset! I had this happen and got my offset refund back after I enrolled in an income-based repayment plan. Worth looking into depending on what kind of debt it's going to.

Just want to share my timeline since it might help: had code 826 in April, found out it was for state taxes, payment plan started in June. By July they had processed my verification documents and actually reduced my payment amount. The whole thing actually worked out better than expected. The key was getting through to someone who actually knew what they were doing.

Random but important question - did you receve a CP504 notice at any point? If so, disregard my comment. If not, the 826 might be related to a refund offset rather than your payment plan. Just trying to make sure we're giving you the right info.

I highly recommend checking your account transcript AND your return transcript. Sometimes they show different information that helps make sense of what's happening. Also make sure you're looking at the right tax year transcript since it sounds like you have issues with multiple years.

Just keep in mind the IRS is CRAZY backlogged right now. What should take days is taking months. I had my transcript show an 826 in March, didn't get the letter explaining what it was for until May. Their processing times are ridiculous. Document everything and keep copies of all your correspondence.

Similar situation - had a 826 code while verifying my identity for a different year. The key is knowing these are separate issues. Focus on submitting your verification docs asap, and separately call the Treasury Offset Program at 800-304-3107 to find out what debt your refund is being applied to. I would also recommend calling the IRS payment plan line directly to confirm your September start date is still good. Don't assume anything - get it confirmed!

FYI - I just went thru this whole mess. If you owe money to any government agency, the Treasury can intercept your tax refund before it gets to you, which is what code 826 means. Your payment plan is a totally separate agreement. Whether your refund gets intercepted or not, you still need to make the payments you agreed to starting in September. If your document verification for 2021 results in you owing less, you'll need to call and have your payment plan amount adjusted.

I was pulling my hair out trying to understand all the different codes on my transcript last month. tried calling IRS like 20 times and never got through. Someone here recommended taxr.ai and it was a game changer - explained everything in plain english and told me exactly what i needed to do next. Saved me countless hours of frustration https://taxr.ai

this is all by design yknow. they make the system SO COMPLICATED that regular people can't understand it, then don't staff enough people to answer phones. meanwhile if you make ONE MISTAKE they hit you with penalties and interest. the whole system is brokn.

WARNING: if you're on a payment plan and they apply an offset (826 code), make sure it doesn't mess up your first payment amount! Sometimes they'll adjust what you owe based on the offset, but the payment amount in their system doesn't update automatically. I ended up with a default on my payment plan because my first payment was still set at the pre-offset amount. Double-check everything before your first payment in September!

The verification process is completely separate from both your payment plan and the 826 code. Keep responding to all verification requests promptly, and don't assume that one issue resolving will affect the others. The IRS treats each of these as separate issues even though to us it's all just "our taxes." I know it's frustrating! Had to deal with this for my 2020 taxes and it took months to sort out all the separate issues.

Are you checking your transcript online? If so, make sure you're looking at the Account transcript, not the Return transcript. The Account transcript shows all the actions they've taken. Also check your mail religiously - they sometimes send notices explaining the 826 code and what debt it's being applied to. Pro tip: sign up for informed delivery from USPS so you know when IRS mail is coming.

This is all so stressful! I've been through it and the anxiety is real. just breathe and take it one step at a time. Your payment plan is still valid and the offset doesn't change that. Document verification is its own thing too. Try not to let it consume your life - the IRS moves at its own pace no matter how much we worry.