How Long After Code 290 Will I Get My Refund?

Tax return processing can be confusing, especially when transaction codes appear on your IRS account transcript. One such code, 290, often leaves taxpayers wondering what it means and how it affects their refund.

Meaning of Code 290

On an IRS account transcript, Code 290 signifies an additional tax assessment. This does not necessarily mean you owe more money; it simply indicates that the IRS has made an adjustment to your return. The amount listed next to the code can be zero, meaning no additional tax was assessed, or it may reflect a specific dollar amount if changes resulted in a balance due.

The IRS applies this code for various reasons, including correcting errors, processing audit results, or adjusting credits and deductions. For example, if the IRS reviews your return and finds a miscalculation in a claimed credit, they may adjust your tax liability. This is common with refundable credits like the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), where eligibility rules are strictly enforced.

Code 290 may also appear after the IRS completes a review triggered by automated systems or a manual examination. If your return was flagged for discrepancies, the IRS may have conducted a review before finalizing the adjustment. This can involve verifying reported income against employer W-2s or 1099s from financial institutions.

Possible Tax Adjustments Linked to Code 290

When Code 290 appears, it often signals modifications to a taxpayer’s account, which can impact tax liability, penalties, or credits. These adjustments may result from IRS-initiated corrections, legislative updates, or taxpayer-submitted amendments.

A common reason for adjustments is misreported income or deductions. The IRS compares reported income with third-party data, such as employer W-2s and 1099s. If discrepancies arise, the IRS may adjust taxable income, which can increase or decrease the amount owed.

Another reason for Code 290 adjustments is the recalculation of tax credits. For example, the IRS may revise the Premium Tax Credit (PTC) for taxpayers who receive advance payments through the Health Insurance Marketplace. If reported income does not match IRS records, the agency may adjust the credit, which can either increase the tax owed or result in a refund adjustment. Similarly, deductions such as the Student Loan Interest Deduction or the Self-Employed Health Insurance Deduction may be modified if the IRS determines the claimed amounts were incorrect.

Penalties and interest can also be linked to Code 290. If the IRS finds underreported income, it may assess an accuracy-related penalty under Internal Revenue Code 6662, which can be up to 20% of the underpayment. Late payment penalties under Internal Revenue Code 6651 may also apply, increasing the total balance due over time. Conversely, if a taxpayer successfully disputes a prior assessment, the IRS may remove penalties or interest, reducing the balance owed.

Timing of Refund After Code 290

The timing of a refund after Code 290 depends on the nature of the adjustment. If the code reflects a zero-dollar adjustment, meaning no changes were made that impact the refund, the IRS typically resumes normal processing without delays. If a refund is due, it is generally issued within a few weeks, provided no further reviews or holds are placed on the account.

If Code 290 results in a refund increase, the IRS must verify the adjustment before releasing funds. This can extend processing time, especially if the change involves refundable tax credits like the Recovery Rebate Credit. Refunds are typically issued via direct deposit or paper check, depending on the original refund method. Taxpayers can monitor their transcript for Code 846 (Refund Issued), which indicates when the payment is scheduled.

If the IRS reduces a refund due to additional tax owed, the agency may offset the refund against outstanding debts, such as unpaid federal taxes, state income tax liabilities, or delinquent child support. The Treasury Offset Program (TOP) facilitates these reductions, and affected taxpayers receive a notice detailing the offset amount and the agency collecting the debt. Any remaining refund is processed separately, which can add further delays.

Status Checks for Your Return

Tracking a tax return after an IRS adjustment requires reviewing available tools and understanding how updates appear in official records. The Where’s My Refund? tool on the IRS website is the most direct way to check refund status, but it may not always reflect recent adjustments immediately. If Code 290 appears on a transcript, taxpayers often need to rely on their IRS Online Account or request an updated Account Transcript to see the latest activity. Transcripts typically refresh weekly, often on Tuesdays, and changes in transaction codes or balance adjustments indicate movement in processing.

For electronically filed returns, updates appear faster, while paper-filed returns or adjustments triggered by correspondence audits take longer. If a refund is issued after an adjustment, the transcript will display Code 846 (Refund Issued), confirming the payment has been scheduled. The date next to this code provides the expected deposit or mailing date, though delays can still occur due to banking institutions or USPS processing times. If no refund-related codes follow Code 290, it may indicate that further IRS review is ongoing or that the adjustment did not result in a refund.

When to Contact the Agency

If Code 290 appears on a transcript and no further action is indicated, taxpayers may not need to contact the IRS. However, certain situations warrant reaching out to ensure there are no unresolved issues or delays in processing.

One reason to contact the IRS is if an adjustment results in an unexpected balance due or a significant reduction in an anticipated refund. If the IRS made changes that the taxpayer does not understand or agree with, requesting an explanation can clarify the adjustment. Taxpayers can call the IRS at the number listed on any notice received or use the general helpline at 1-800-829-1040. If the adjustment stems from an audit or review, the assigned examiner’s contact information will be provided in the correspondence. If additional tax has been assessed, taxpayers may request a reconsideration or formally dispute the adjustment through the Audit Reconsideration Process or by filing an appeal with the Office of Appeals.

Another reason to reach out is if a refund has not been issued within the expected timeframe after an adjustment. If Code 846 does not appear on the transcript within a few weeks of the adjustment, it may indicate that further review is delaying the refund. Taxpayers experiencing prolonged delays can request an update through the Taxpayer Advocate Service (TAS), particularly if financial hardship is involved. TAS assists in cases where normal IRS channels are not resolving issues efficiently. Additionally, if a refund was issued but has not been received, taxpayers can initiate a refund trace through Form 3911 to determine whether the payment was lost, misdirected, or intercepted due to an offset.