IRS Account Transcript Code 846

When you see IRS Account Transcript Code 846 on your tax transcript, it means that the IRS has approved your refund and that they are processing it. This usually takes 2-3 weeks for the money to be deposited into your bank account, or sent out as a paper check. You can track your refund status by using the Where’s My Refund tool. The date on this line of the transcript is the refund cycle code, so you can use this to estimate when your refund will be issued. However, this is not the same as the date on your direct deposit or check, which will be based on your day-of-the-week cycle code.

However, if you have a date on your IRS Account Transcript Code 846, then that is the date that you can expect your actual refund to be deposited into your bank account or sent as a paper check. It could be up to 5 business days for the funds to show up in your bank account if you use direct deposit and up to 10 days for paper checks. If you have any further questions about the meaning of IRS Code 846, please don’t hesitate to contact me.

What to Do About Transcript Code 846?

Seeing a transcript code 846 with date on your IRS account transcript indicates that the refund you filed for has been approved and is on its way. This is a good sign that you can finally do the happy dance! However, you need to understand that the date listed on the 846 line is only the processing date, not your refund payment date. You can use the cycle dates on the IRS transcript and the official Where’s My Refund tool to determine an estimate of when your refund will be deposited.

The 846 date on your IRS transcript may come before or after other transaction codes such as TC 570 (adjustment), TC 898 (BFS offset/non-IRS debt), and 971 (Notice issued). These additional adjustment transactions indicate the reasons why the IRS needs to make further adjustments before they can issue the refund to you.

Several filers are reporting that their PATH freeze has lifted, and they’re now getting a refund payment date on their IRS transcript with code 846 and a date. This is a great indicator that your refund will be paid soon and should be received by direct deposit or via paper check within 2 to 3 weeks for those filing electronically.