What Does IRS Code 291 Mean? Transcript Shows -$1,910 "Reduced Tax" with Refund Freeze - Do I Get This Money?

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Tax professional here with 15 years experience. IRS Code 291 typically shows up on your transcript when there's been an adjustment to your tax return resulting in a refund. The amount shown with code 291 represents money being sent back to you - it's not something you owe. This usually happens when the IRS reviews your return and finds you're entitled to more money than originally calculated. Quick tip - if you want a detailed analysis of your transcript and to know exactly when you'll get your refund, check out https://taxr.ai - it's been a game changer for understanding these complex codes and getting accurate timeline predictions.

A 291 code actually means there's been an adjustment to your tax return after it was processed. Without seeing the +/- symbol next to the amount, it's impossible to tell if it's in your favor or not. The best way to know for sure is to look at the symbol next to the amount.

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lol welcome to the club of confusion! The IRS makes everything so complicated on purpose i swear 🤡

I had the same issue last month. Turns out mine was an adjustment in my favor but took forever to figure that out.

Been dealing with the IRS for 20+ years as a tax preparer. A 291 is just an adjustment code - could be either direction. You need to look at the whole transcript to understand the context. Check if there's a 846 code following it (that's the refund code).