IRS Transcript Help: Credits Reduced by $4,880 (Codes 767/765) and Interest Charged $275 After Amended Return

I'm looking at my transcript and completely confused about all these codes. Below is what I'm seeing: 971 Amended tax return or claim 10-11-2024 $0.00 forwarded for processing 977 Amended return filed 10-11-2024 $0.00 43277-696-04828-4 767 Reduced or removed credit to your account 04-15-2024 $1,836.00 765 Reduced or removed earned income credit 04-15-2024 $3,244.00 291 Reduced or removed prior tax assessed 02-16-2025 -$1,848.00 09254-410-06319-5 196 Interest charged for late payment 20250505 02-18-2025 $375.21 971 Notice issued 02-18-2025 $0.00 I see code 971 from 10-11-2024 that says "Amended tax return or claim" ($0.00) with a note that it was "forwarded for processing", and another 977 code from the same date about "Amended return filed" ($0.00) with some reference number 43277-696-04828-4. But what's really concerning me is all these reductions - there's code 767 from 04-15-2024 showing "Reduced or removed credit to your account" for $1,836.00, and code 765 from the same date showing "Reduced or removed earned income credit" for $3,244.00! That's a total of over $5,000 in credits being removed! Then there's code 291 from 02-16-2025 for "Reduced or removed prior tax assessed" showing -$1,848.00 with another reference number 09254-410-06319-5. To make matters worse, I'm seeing code 196 with an interest charge for late payment dated 02-18-2025 for $375.21, and another 971 code from 02-18-2025 for a "Notice issued" ($0.00). Can anyone explain what all these codes mean? I'm especially worried about these reduced credits totaling over $5,000 and this interest charge. Does the 291 code mean they're giving me money back or taking more away? And what about that "20250505" date next to the interest charge - is that significant? Is anyone else dealing with reduced credits and interest charges like this? I really need help understanding what's happening with my account.

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Javier Torres

The transcript shows significant adjustments to your tax account across multiple dates. The most recent activity shows you filed an amended return (codes 971/977) on October 11, 2024, which is currently being processed under reference number 43277-696-04828-4. The most substantial changes occurred on April 15, 2024, when the IRS reduced two credits: - A $3,144 reduction in your earned income credit (code 765) - A $1,736 reduction in another credit (code 767) These reductions total $4,880 in decreased credits On February 17, 2025, there were three additional changes: - A reduction in your prior tax assessment of $848 (code 291) - An interest charge of $275.21 for late payment (code 196) - A notice issued about these changes (code 971) The presence of multiple adjustment codes and an interest charge suggests the IRS found discrepancies in your original return that affected your credit eligibility. The reference number 09254-410-06319-5 is associated with these changes. You should carefully review any notices received from the IRS explaining these adjustments, particularly regarding your eligibility for the earned income credit, as this represents the largest adjustment.

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- 1M