301 | Reduced tax

Industry

IRS / Tax

Canonical

/irs-tax/error-codes/301/

Last Updated

Feb 25, 2026

Summary

This code indicates that a previously assessed amount of tax has been reduced following review or adjustment.

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What This Code Means

Code 301 reflects a reduction in assessed tax, often following examination or adjustment procedures. It represents the official posting of a decreased liability amount on the transcript. The code indicates that prior assessments were modified to lower the total owed. It does not by itself confirm refund issuance, but it may result in reduced balance or overpayment status. The associated entry shows the amount reduced.

Where Users Usually See This Code

On IRS account transcripts
After examination adjustments
In conjunction with notice codes

Why This Code Appears

Examination reduced prior assessment
Administrative correction lowered liability
Review resulted in adjustment
Recalculation of tax reduced amount due

What Typically Happens Next

Account balance decreases
Refund issuance may occur if overpayment exists
Additional adjustment entries may post

What This Code Is Not

It is not a refund issuance code
It is not a hold or freeze
It does not specify the reason without supporting codes

Troubleshooting Checklist

□ Review balance updates after reduction
□ Check for refund issuance codes
□ Review notice entries for explanation
□ Consult official IRS resources if clarification is required

Notes And Edge Cases

Code 301 often follows examination procedures and may offset a prior 300 entry. Multiple adjustments can appear in sequence. Reviewing the transcript chronologically provides clarity on net impact.

Related Codes

8 links

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