What Does 810 Mean on a Tax Transcript?

Encountering IRS Code 810 on your tax transcript can be confusing for taxpayers awaiting their refunds. This article explains what a tax transcript is, the meaning of Code 810, common causes for its appearance, and actionable steps to address it.

Understanding Tax Transcripts

An IRS tax transcript serves as a summary of your tax return information for a specific tax year. It provides a detailed overview of your tax account, including filing status, Adjusted Gross Income (AGI), tax liability, payments made, and any credits or deductions claimed. Tax transcripts are often utilized for various financial purposes, such as applying for mortgages, student loans, or other forms of financial aid, where proof of income and tax history is required.

There are several types of transcripts, including the tax return transcript, which shows most line items from your original return, and the tax account transcript, which provides basic data like return type and payment information. The record of account transcript combines both, offering the most comprehensive view of your tax history. These documents are distinct from a copy of your actual tax return, providing a more concise summary of the data the IRS has on file.

Meaning of Code 810

When you see Code 810 on your IRS tax transcript, it signifies that the Internal Revenue Service has placed a “refund freeze” or “hold” on your tax account. This means the processing of your tax refund has been temporarily stopped. The IRS implements this hold for further review or verification before releasing funds.

A Code 810 does not necessarily indicate a rejection of your refund, but rather a pause while the IRS double-checks certain information. This delays your refund and can affect financial planning. While the transcript shows the 810 code, it often does not explicitly state the reason for the freeze, requiring further investigation.

Common Reasons for Code 810

Several scenarios can trigger an 810 code on a tax transcript, often indicating that the IRS requires additional verification or has identified a discrepancy. One frequent cause is suspected identity theft or fraud, where the IRS flags a return if it detects unusual filing behavior or mismatched personal information like a Social Security Number (SSN). This protective measure prevents fraudulent claims and ensures refunds are issued to the rightful taxpayer.

Discrepancies between reported income and third-party information (e.g., W-2s, 1099s) can lead to an 810 freeze; the IRS may halt the refund to investigate significant differences. Missing or incomplete information on the tax return, such as a forgotten signature, omitted W-2, or calculation error, can also prompt this code. The IRS may apply an 810 code for outstanding tax liabilities from previous years, ensuring past-due amounts are addressed. Verification of claimed credits, such as the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC), can also trigger a review to confirm eligibility.

Actions to Take for Code 810

Upon discovering a Code 810 on your tax transcript, first check for any accompanying transaction codes that might offer more specific information about the freeze. Codes like 971 often indicate a notice has been or will be issued by the IRS, explaining the reason for the hold and any required actions. Codes like 811 or 826 can indicate if the freeze has been reversed or if the refund has been offset for other debts.

Contacting the IRS directly is often necessary to understand the precise nature of the refund freeze. You can reach the IRS for individual tax inquiries at 1-800-829-1040, generally available Monday through Friday from 7 AM to 7 PM local time. When contacting them, have your Social Security Number, filing status, and the exact refund amount ready to expedite the process. Respond promptly to any notices received from the IRS, such as CP05, CP75, or CP2000 letters, as these typically request additional documentation or clarification needed to resolve the issue. Providing the requested information accurately and completely is crucial, as reviews can take time, sometimes ranging from a few weeks for simple verifications to several months for complex issues like audits or fraud checks.