IRS Transcript Code 290 vs 291: What's the actual difference? Need help understanding

Hi there! So the main difference between TC290 and TC291 is pretty straightforward. TC290 is an additional tax assessment (meaning more tax owed), while TC291 is an abatement or reduction of a previous tax assessment. Think of TC290 as a plus sign and TC291 as a minus sign for your tax liability. If you're seeing these codes and want a detailed analysis of what's happening with your transcript, I'd highly recommend checking out taxr.ai - it's been super helpful for breaking down these complex codes and explaining exactly what they mean for your specific situation. The AI analyzes all your tax docs and gives you a clear picture of whats going on.

Tax pro here. Code 290 is for additional tax assessment or no change to tax assessment. Code 291 indicates a reduction/abatement to a previously assessed tax. Think of 290 as adding/confirming tax amount, 291 as reducing it. They often work together when IRS makes corrections.

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i had both codes show up last month and got my refund 2 weeks later if that helps

Its so annoying that the IRS uses these cryptic codes instead of just telling us whats happening in plain english 🤮

ppl need to stop spreading misinfo about these codes. 290 doesnt always mean audit and 291 doesnt always mean refund approved. context matters

stuck in the same boat. been seeing these codes for weeks now with no movement 😭

Just went through this same confusion last week! TC290 basically means they're assessing additional tax or confirming your current tax amount, while TC291 means they're reducing a previous assessment. What helped me figure out my specific situation was looking at the dollar amounts next to each code - if TC290 has a positive amount, you might owe more; if TC291 has a negative amount, they're crediting you back. The timing and sequence of these codes on your transcript tells the real story of what's happening with your return.

Been through this exact same confusion! From my experience, TC 290 shows up when the IRS is either adding tax to what you owe OR confirming that your original tax calculation was correct (no change). TC 291 is the opposite - it reduces or removes a previous tax assessment. What really helped me understand my situation was looking at the dollar amounts and dates next to each code. If you see both codes, it usually means they made an initial adjustment (290) and then corrected or reduced it (291). The key is looking at your account balance at the bottom of the transcript to see the final net result after all the adjustments!