Will an Offset Delay the Rest of My Refund Being Deposited?
Just received a Notice of Offset for my 2023 tax refund due to some outstanding business taxes from my LLC. The Treasury Offset Program (TOP) notification says they're taking $3,782 from my expected refund of $7,145. What I'm concerned about is whether this offset will delay the remaining portion ($3,363) from being deposited? My transcripts show code 898 but I'm not seeing a DDD yet. Has anyone experienced this? Will they process the remaining refund on the normal timeline or does the offset create additional processing delays?
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James Maki
I went through this exact situation last year. From my experience, the offset itself doesn't usually cause additional delays for the remaining portion of your refund. What typically happens is that the IRS processes your return normally, applies the offset amount to whatever debt was identified (in your case the business taxes), and then releases the remainder to you. In my case, I received the remaining portion about 7-10 days after getting the offset notice. I remember being so worried that I'd have to wait months, but it was actually pretty smooth once the offset was processed.
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Jasmine Hancock
•This is so helpful to hear! I've been absolutely panicking since getting that notice. I was worried they'd hold the entire refund for weeks or months while they sorted out the offset. It's a relief to know the remaining portion should still come through on a somewhat normal timeline. Did you get any additional notices before the remaining refund was deposited?
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Cole Roush
•How does this compare to offsets for student loans? I've heard those can take longer to process because they go through the Department of Education first. Do business tax offsets move faster since it's all within the IRS system? My transcript shows similar codes but I'm trying to gauge if the timeframes might be different.
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Scarlett Forster
Have you checked your transcript for any other codes besides the 898? Sometimes there's a 571 code that follows which indicates the offset is complete. Also, do you know exactly which business taxes triggered the offset? Sometimes that makes a difference in processing time.
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Arnav Bengali
•I'm concerned about this too - does the type of debt really affect how quickly they process the remaining refund? I thought once they flagged it for offset, the whole process followed the same timeline regardless of what the debt was for.
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Sayid Hassan
•I had an offset for unpaid state taxes last year and found that checking my transcript daily was driving me crazy. Once I saw the 898 code, the remaining refund showed up in my account exactly 8 days later. The transcript updated with a DDD about 3 days before the deposit hit.
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Rachel Tao
•I believe I've also seen a code 776 on some transcripts, which I think might indicate the actual offset amount? At least that's what I gathered from reading through some IRS documentation, though I'm not 100% certain about this particular code's meaning.
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Derek Olson
I checked my transcript again this morning and I do see some additional codes now. There's a 776 dated 3/28/2024 for the $3,782 amount and a 290 code with $0.00 amount. Still no direct deposit date though. The debt was from underpaid quarterly estimated taxes for my business in 2022. I thought I had caught up on everything, but apparently I miscalculated. Really need that remaining refund soon for some equipment purchases.
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Danielle Mays
•Those codes are actually a good sign. The 776 confirms the offset amount and the 290 with $0.00 often indicates processing is moving forward. Have you received any official letters from the IRS about the offset besides what you saw on your transcript? Sometimes they send a formal notice explaining everything.
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Roger Romero
When I had an offset situation last year, I spent days trying to reach someone at the IRS to confirm when I'd get the remainder of my refund. After 14 attempts and hours on hold, I discovered Claimyr (https://youtu.be/_kiP6q8DX5c). They got me through to an actual IRS agent in about 25 minutes who confirmed my remaining refund was scheduled to be released within 5 business days. Totally worth it when you need definitive answers about offset timing rather than guessing based on transcript codes.
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Anna Kerber
Has your Where's My Refund tool updated at all? In my experience with offsets, WMR sometimes shows different information than what appears on your transcript. The 898 code typically appears exactly 7 days before the remaining refund is scheduled for deposit, but that's not always consistent during peak filing season.
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Niko Ramsey
According to the IRS website (specifically Publication 1450 which covers the Treasury Offset Program), offsets should not cause significant delays to the remainder of your refund. The standard timeline states that once an offset is processed, the remaining refund follows the normal direct deposit schedule. However, if your offset was particularly large compared to your total refund (which yours is at over 50%), sometimes that triggers an additional review. The IRS's "Where's My Refund" tool should update within 3-5 business days after the offset processing is complete. I'd recommend checking it daily at this point.
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Seraphina Delan
•To add to this excellent information, here's what typically happens with offsets step by step: 1. IRS processes your return normally until it's ready for refund 2. Before issuing refund, they check the Treasury Offset Program database 3. If a match is found, they flag your account (code 898) 4. They calculate the offset amount and apply it to the debt (code 776) 5. They adjust your account to reflect the reduced refund 6. The remaining amount is released for direct deposit In my experience, steps 3-6 typically happen within a 7-10 day window, but can take up to 14 days during peak season.
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Jabari-Jo
I had almost the exact same situation last tax season with a business tax offset. My refund was about $8,200 and they took $4,100 for a payroll tax issue I didn't even know about. I was worried about delays too, but the remaining $4,100 hit my account exactly 9 days after the offset notice appeared on my transcript. The thing that helped me most was watching for the 846 code to appear - that's the direct deposit code that shows both the amount and the date. Once I saw that, I knew exactly when to expect the money. Hope this helps ease your mind a bit!
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