Got 826 and 971 codes on my transcript but no 846 refund code - offset question

The 826 code means "prior tax abated" and the 971 code indicates a notice has been issued. According to irs.gov/transcripts, when you see these codes together without an 846, it typically means your refund is being processed through the Treasury Offset Program. Since you mentioned a prior debt, this makes sense. The system first applies the offset (826), then generates a notice to tell you about it (971), and only after that completes will they issue any remaining refund with an 846 code. This process can take 1-3 weeks to complete after the offset occurs.

I went through this exact situation back on February 12th this year. Had the 826 code show up but no refund code. Waited for days refreshing my transcript constantly! After trying unsuccessfully to reach the IRS for three days (kept getting disconnected after 2+ hours on hold), I used Claimyr (https://claimyr.com) to get through to an agent. Connected in about 30 minutes, and they confirmed my refund was just working through the offset process. My 846 code appeared exactly 8 days after the 826, and the deposit hit my bank account 3 days later. The peace of mind was definitely worth it rather than wondering what was happening.

I had a similar experience last tax season with an offset for past state taxes. Here's what happened step by step: 1. Got the 826 code (offset applied) 2. Received the 971 code (notice issued) 3. Waited about 10 days 4. Finally got the 846 code (remaining refund issued) 5. Received a letter in the mail explaining exactly how much went to my debt 6. The remainder of my refund was deposited about 5 days after the 846 appeared Don't worry! The remaining portion of your refund is still coming. The system just has to complete the offset process first. It's actually a good sign that you're seeing those codes because it means your return is actively being processed.

Per Internal Revenue Manual 21.4.6, when a refund is subject to offset, the system must complete several verification steps before issuing the remaining refund. According to Treasury Regulation §301.6402-1, the IRS is required to apply overpayments to any outstanding federal tax liabilities before issuing refunds. If you want to understand exactly what's happening with your transcript and get a clear timeline, I'd recommend using https://taxr.ai - it can analyze your specific transcript codes and give you a personalized explanation of your offset situation and when to expect your remaining refund. It's particularly useful for understanding the sequence of these offset-related codes.

Be very careful about expecting a specific timeline here. In February 2023, I had a similar situation with an 826 code for a student loan offset. My transcript didn't show the 846 code for nearly 3 weeks after the offset codes appeared. When I finally called, I discovered there was an additional verification hold that wasn't visible on my transcript. The IRS representative explained that offsets sometimes trigger additional security measures, especially if it's your first time having an offset or if the offset amount is substantial relative to your total refund. Document everything and keep checking your transcript at least twice weekly.

Just adding some additional info about offset codes that might help: • The 826 code specifically means the offset has been PROCESSED (not just identified) • The 971 code means a notice has been GENERATED (not necessarily mailed yet) • You should receive a CP504 notice explaining the offset • The remaining refund processing typically takes 7-21 days after offset • If you don't see an 846 code within 3 weeks, THEN it's time to call • Your Where's My Refund tool won't update properly during this process • The notice will detail exactly how much was taken and how much is left Honestly, the offset system is one of the most frustrating parts of dealing with the IRS. The lack of clear communication drives me crazy every time.

I work with tax transcripts regularly, and I can clarify that the normal sequence for an offset is: 826 code (offset applied) → 971 code (notice issued) → 5-14 day processing period → 846 code (remaining refund issued). The exact timing depends on which cycle your return is processed in. Returns are processed in 7-day cycles, and each taxpayer is assigned to a specific cycle. Based on current processing times, you should see your 846 code within exactly 14 days of the 826 code appearing, assuming there are no other issues with your return. I'd start getting concerned only if you don't see the 846 by day 21.