846 Refund Issued but Not Received? Here’s What to Do
Learn why your refund might be delayed and discover steps to track, verify, and resolve issues with your tax refund status.
Tax season can be a stressful time, especially when you’re awaiting your refund. Seeing Code 846 on your IRS account transcript signals good news: your refund has been issued. But what happens if the refund doesn’t arrive as expected? This situation can cause confusion for many taxpayers.
Understanding why delays occur is essential to resolving the issue. Let’s explore the reasons behind a missing refund and the steps you can take to ensure it reaches you.
What Code 846 Means
Code 846 on an IRS account transcript means a refund has been issued. It’s part of the IRS’s system for tracking tax returns and related transactions. When this code appears, it indicates the IRS has processed your return, completed its review, and authorized your refund.
Issuing Code 846 involves verifying the taxpayer’s identity, checking for outstanding debts or offsets, and confirming the accuracy of reported income and deductions. Once these steps are completed, the IRS updates your account with Code 846, signaling the refund is ready to be sent.
Sometimes, Code 846 is accompanied by additional codes that provide context about your refund status. For instance, Code 570 may indicate a hold due to a pending review, or Code 971 could mean a notice has been issued. Understanding these codes can help you interpret your transcript and anticipate delays.
Why Your Refund May Not Arrive Immediately
While Code 846 confirms your refund has been issued, delays can still occur. One common reason is the IRS’s verification process, which has become more stringent to combat identity theft and fraud. Additional processing time may be needed if discrepancies are found, such as mismatched income reports or Social Security numbers.
The delivery method can also impact timing. Direct deposits, though typically faster, may be delayed by incorrect bank details or closed accounts, requiring the IRS to reissue the refund. Paper checks sent via mail can face delays due to postal service issues or incorrect addresses. In such cases, updating your information with the IRS is critical.
Outstanding financial obligations, like unpaid federal taxes, child support, or student loans, can also delay or reduce your refund. The IRS is authorized to offset refunds to cover these debts, so taxpayers should be aware of any liabilities before expecting a full refund.
Confirming Deposit or Mailing Information
Accurate deposit or mailing information is crucial for a smooth refund process. Review the account details provided to the IRS, such as your bank’s routing number and account number for direct deposits. Even a small error, like transposed digits, can misdirect funds. Double-check these details through your bank statements or directly with your financial institution.
For paper checks, verify the mailing address on your most recent tax return. If you’ve moved, update your address with the IRS using Form 8822. Outdated information can cause checks to be sent to previous residences. Be cautious about relying solely on postal forwarding services, as these arrangements can fail, leading to returned checks.
How to Track or Verify Refund Status
Tracking your refund status is straightforward with the IRS’s tools. The “Where’s My Refund?” tool, available online or via the IRS mobile app, provides real-time updates. You’ll need your Social Security number, filing status, and the exact refund amount to use it. Updates are typically available 24 hours after e-filing or four weeks after mailing a paper return.
For more detailed information, review your IRS account transcript. This document outlines your tax return’s processing stages, including any adjustments or holds. Accessing your transcript online can reveal whether discrepancies or further verifications are causing delays.
Identifying Potential Return Errors
Errors in your tax return can often explain a missing refund. These mistakes may include arithmetic errors, incorrect filing status, or unreported income. Reviewing your return thoroughly can help identify discrepancies. If the return was prepared manually, cross-check calculations and ensure all documentation aligns with reported figures.
Tax credits and deductions are another common source of errors. Misreporting or overclaiming credits, such as the Earned Income Tax Credit (EITC) or Child Tax Credit, can lead to delays. Verify your eligibility for these credits and ensure they’re calculated accurately. Be mindful of recent tax law changes that could impact your eligibility.
When to Contact Tax Authorities
If your refund remains delayed, it’s time to contact the IRS or state tax authorities. Before reaching out, gather your tax return, IRS correspondence, and any records of prior communications to streamline the process. Use the IRS’s toll-free number or secure online portal for personalized assistance.
In certain cases, you may benefit from the Taxpayer Advocate Service (TAS), an independent organization within the IRS that helps taxpayers facing significant hardships or delays. If standard channels don’t resolve the issue, TAS can offer expedited assistance. Alternatively, you can send a detailed letter to the IRS with all relevant documentation to explain your situation.