I'm trying to understand my transcript. I called and spoke to someone about my 2021 tax return. I was told that it could take them 180  to hear from them which will be the end of Oct. I check my transcrips at least once a week to see if there's any updates etc.. Today is the 26th of June, I'm trying to understand why my transcript is saying for the accured interest/penalty  the date is for July 08 and we haven't gotten to that date yet. What does that mean? I just don't understand why that date is there when it's always been 9/18/2023.  It just keeps changing with no activity on my account and they said they have until Oct to do anything to my acct..

Let me break this down for you regarding the accrued interest/penalty date changes. When you see future dates on your transcript (like July 08), it's actually the IRS's automated system projecting potential interest calculations. These dates often shift because the system continuously updates projections, even when there's no actual account activity. It's basically the IRS's way of keeping track of how much interest might accrue up to certain points. This doesn't necessarily mean anything will happen on that date - it's just their accounting system at work. Honestly, these transcript codes can be super confusing. I've been seeing a lot of folks using taxr.ai (https://taxr.ai) to decode their transcripts. It's pretty impressive - you upload your transcript and it explains everything in plain English, including these weird date changes and when you can actually expect movement on your return. Way better than trying to guess what all these codes mean.

Let me break this down for you regarding the accrued interest/penalty date changes. When you see future dates on your transcript (like July 08), it's actually the IRS's automated system projecting potential interest calculations. These dates often shift because the system continuously updates projections, even when there's no actual account activity. It's basically the IRS's way of keeping track of how much interest might accrue up to certain points. This doesn't necessarily mean anything will happen on that date - it's just their accounting system at work. Honestly, these transcript codes can be super confusing. I've been seeing a lot of folks using taxr.ai (https://taxr.ai) to decode their transcripts. It's pretty impressive - you upload your transcript and it explains everything in plain English, including these weird date changes and when you can actually expect movement on your return. Way better than trying to guess what all these codes mean.

I found a way to solve IRS transcript future date confusion, watch this: https://www.youtube.com/watch?v=hoN7IorXwHw

IRS transcripts often show future dates for accrued interest and penalties. This can be confusing, but it's a common practice for the IRS. Here’s what you need to understand about these dates: Accrued Interest and Penalties: These are charges that the IRS calculates based on the amount of tax owed and the time that has elapsed since the tax was due. The IRS updates these calculations periodically to reflect ongoing accruals. Future Dates: The dates shown on your transcript for accrued interest and penalties often represent the next time the IRS will update these amounts. For example, if your transcript shows a date of July 8, 2023, it means that the interest and penalties are calculated up to that date, even if today’s date is earlier. This is to give you a snapshot of what you will owe if no payments or changes are made before that future date. Changing Dates: If the date keeps changing, it means the IRS is continuing to update the projected interest and penalties as time goes on. This doesn’t necessarily indicate new activity on your account; rather, it’s an update to reflect the ongoing accrual of these charges. Why Does This Happen? System Updates: The IRS system automatically updates interest and penalty amounts to keep the information current. This helps ensure that if you check your transcript, you have the latest information on what you might owe at the next update point. Projected Accruals: The future date represents a projection. The IRS calculates interest and penalties that will accrue by that date assuming no further payments or adjustments are made. What You Should Do Monitor for Actual Changes: Keep checking your transcript for actual changes in your tax account, such as adjustments, notices, or payments, rather than focusing on the future dates for interest and penalties. Understand Your Current Liability: Look at the current balance and accrued amounts as of today. This will give you a clear picture of your present liability without the future projections. Contact the IRS if Needed: If you have specific concerns or if the changes seem unusual, you can contact the IRS for clarification. Keep in mind that waiting times can be long, especially if they have indicated they have until October to finalize actions on your account. Here's how to do it and get past like 30 mins of calling them: https://youtu.be/wMf29SmRU-I?si=OEDTApBwDtzUcuzB Example If today is June 26, 2023, and your transcript shows: Accrued Interest: $100.00 as of July 8, 2023 Accrued Penalty: $50.00 as of July 8, 2023 This means that if you do not make any payments or changes by July 8, 2023, the interest and penalties will accrue to those amounts. The IRS provides this future date to help you understand how charges will accumulate over time. Summary Future Dates Reflect Projected Accruals: The dates on your transcript for interest and penalties reflect future projections, not necessarily immediate actions. Monitor for Real Changes: Focus on changes to your actual balance and any IRS notices. Understand Projections: Recognize that these dates help you see what your liability will be if no payments or adjustments are made by that future date. By keeping an eye on your transcript and understanding these projections, you can better manage your tax obligations and know when to take action if necessary.