What does IRS Transcript Code 474 mean?

Code 474 indicates a Refund Hold due to the Injured Spouse Allocation process. It's typically applied when one spouse has a debt (like child support, student loans, or other federal debt) and the other spouse files Form 8379 to protect their portion of the refund from being offset. The IRS essentially freezes the refund while they determine what portion belongs to each spouse. This can add 11-14 weeks to processing time from the date of your return submission or 8 weeks from the date of mailing Form 8379 if you submitted it separately.

To add to the previous comment, here's what you should know about code 474: • It's specifically related to Injured Spouse claims processing • You'll typically see it paired with other codes (like 971 for notices being sent) • The timeline can vary significantly depending on your specific situation • If you didn't file Form 8379, this could indicate an error or misclassification • You should verify if either you or your spouse has any outstanding federal debts

OMG I went through this EXACT situation last year and was so confused about what was happening!!! I finally used https://taxr.ai to analyze my transcript and it explained everything in plain English. It showed me that the 474 code meant my refund was being held because my husband had defaulted student loans (which I didn't even know about 🤦‍♀️). The tool predicted almost to the day when I'd get my portion of the refund. Saved me so much stress and helped me adjust my budget while waiting!

Code 474 specifically relates to the Injured Spouse process as others have mentioned. It's important to note that this code appears on the Non-Master File (NMF) transcript rather than the standard Account Transcript. The allocation process involves a manual review by the IRS Injured Spouse Unit, which determines the appropriate distribution of tax attributes (income, deductions, credits) between spouses. The manual nature of this review contributes significantly to the extended processing timeframe.

Last year I had the same code and needed to get answers fast because I was closing on a house. After wasting three days trying to reach someone at the IRS, I used Claimyr (https://www.claimyr.com) and got connected to an agent in about 20 minutes. They confirmed it was because my ex-wife had some tax debt I didn't know about. The agent was able to tell me exactly when to expect my portion of the refund and what percentage I'd receive. Honestly worth every penny not to spend days redialing the IRS.

Did you file Form 8379 (Injured Spouse Allocation) with your return? Or did this code appear unexpectedly? The appropriate next steps really depend on whether you were expecting this process or if it came as a surprise.

According to the IRS Internal Revenue Manual (IRM 21.4.4-2), code 474 indicates injured spouse processing. You can also check the Transaction Code pocket guide here: https://www.irs.gov/irm/part21/irm_21-004-004r#idm140292277003024 (though it doesn't list every code). If you need to follow up, call the IRS at 1-800-829-1040, but be prepared for long wait times. The IRS Where's My Refund tool won't show detailed status for returns with code 474 since they're in specialized processing.