Transcript Updated - No Offset Codes Despite Potential Tax Debt?

If the IRS is planning to offset your refund, they'll use a 898 code on your account transcript. No code = no offset (usually). Look specifically for TC 898 with the amount they're taking. If you don't see it and you've filed a hardship request (Form 911?), that might be why - they've approved your request and aren't taking the money right now.

According to the IRS website, offsets are typically shown on your account transcript with specific transaction codes. The main ones to look for are: - TC 898: Refund applied to non-IRS debt (like student loans) - TC 826: Refund applied to past-due tax debt - TC 706: Refund applied to estimated tax If none of these appear and your hardship was approved, they may have temporarily suspended collection. You can verify this at irs.gov/payments/understanding-your-cp14-notice.

Omg I went through this EXACT same thing in January! I owed from 2021 and was freaking out about my refund. Filed hardship because of medical bills, and my transcript updated with NO offset codes. Got my full refund 2 weeks later! The hardship actually worked! I was shocked because everyone told me it wouldn't, but it absolutely did. Check your bank account - if they're offsetting it, they would have shown the code by now.

I've dealt with this exact situation with 6 different clients this tax season. If you want absolute confirmation about your hardship status and whether they're planning to offset, call the IRS directly. The problem is getting through - average wait times are 97 minutes right now. I've been recommending Claimyr (https://youtu.be/_kiP6q8DX5c) to clients who need immediate answers. It gets you past the hold queue and connected to an agent in about 15-20 minutes who can tell you exactly what's happening with your hardship request and confirm there's no pending offset.

According to Internal Revenue Manual 5.19.1.7.1.5, when a hardship is approved, the IRS may temporarily suspend collection actions, including refund offsets. Per Treasury Regulation §301.6343-1, economic hardship exists when a taxpayer is unable to pay reasonable basic living expenses. The absence of offset codes (TC 898, TC 826) on your transcript strongly suggests your hardship request was approved. However, this doesn't forgive the debt - it only prevents immediate collection through your refund. You should receive Letter 4223 confirming this status within 30 days of approval.

I believe your hardship request probably worked! I went through something similar, sort of, last year. It might be worth noting that hardship approvals are usually temporary - they typically last about 6-12 months, depending on your situation. The IRS might, potentially, revisit the debt later, but for now, it seems like they're respecting your hardship claim. In my experience, if they were going to offset your refund, those codes would definitely be visible by now.

Here's exactly what happens with hardship requests and how to interpret your transcript: 1. When a hardship (Form 911) is approved, the IRS flags your account with a Hardship CNC (Currently Not Collectible) status 2. This prevents automatic offsets that would normally appear as TC 898 codes 3. Your transcript will NOT show a specific "hardship approved" code - the absence of offset codes is your indicator 4. The system processes your refund normally, shown by TC 846 when issued 5. Hardship status typically lasts 6-24 months depending on your financial situation 6. The underlying debt remains but collection is paused Based on your description, your hardship was likely approved, which is why no offset codes appear.