291 | Reduced tax assessed

Industry

IRS / Tax

Canonical

/irs-tax/error-codes/291/

Last Updated

Feb 25, 2026

Summary

This code indicates that previously assessed tax has been reduced on the account.

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What This Code Means

Code 291 reflects a decrease in assessed tax. It represents a correction or adjustment that lowers the taxpayer’s liability. The code may follow review, amended return processing, or internal correction. It does not confirm refund issuance, but it reduces the balance owed or increases overpayment. The transcript entry includes the amount reduced.

Where Users Usually See This Code

On IRS account transcripts
After adjustment or amended return processing
In connection with notice codes

Why This Code Appears

Correction of prior assessment
Successful amendment reducing liability
Administrative adjustment by IRS
Examination outcome reducing assessed tax

What Typically Happens Next

Account balance decreases
Refund issuance may occur if overpayment results
Notices may be issued

What This Code Is Not

It is not a refund issuance by itself
It is not a freeze or hold
It does not specify reason without supporting entries

Troubleshooting Checklist

□ Review transcript balances after reduction
□ Monitor for refund issuance entries
□ Review notice codes for context
□ Consult official IRS resources if needed

Notes And Edge Cases

Reduced assessments may appear as separate entries rather than replacing original codes. The transcript should be reviewed in full to understand cumulative impact. Timing between assessment and reduction entries can vary.

Related Codes

8 links

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