820 | Credit offset

Industry

IRS / Tax

Canonical

/irs-tax/error-codes/820/

Last Updated

Feb 25, 2026

Summary

This code indicates that a credit was applied to an outstanding balance or obligation.

Advertisement after-summary

Ad Space

What This Code Means

Code 820 reflects that a credit was used to offset an existing liability. This entry represents application of available funds toward outstanding tax or other obligations. It does not indicate refund issuance because the credit was applied internally. The code reflects reduction of one balance using available credit. It signals administrative application of funds within IRS systems.

Where Users Usually See This Code

On IRS account transcripts
After credits are applied to balances
During review of account adjustments

Why This Code Appears

Overpayment existed and was applied
Outstanding tax liability required offset
Administrative reconciliation occurred
Cross-year balances were adjusted

What Typically Happens Next

The outstanding balance decreases
Credit balances may reduce
Additional adjustment entries may appear

What This Code Is Not

It is not a refund issuance
It is not a freeze or hold
It does not represent new assessment

Troubleshooting Checklist

□ Review updated balance totals
□ Check for related transfer entries
□ Monitor for notice codes
□ Consult official IRS resources if clarification is required

Notes And Edge Cases

Offsets may apply across tax years or within the same year. Reviewing the full transcript sequence clarifies net impact. The amount shown reflects the credit applied.

Related Codes

8 links

Advertisement near-bottom

Ad Space