898 | Treasury offset
This code indicates that all or part of the refund was applied to a debt through the Treasury Offset Program.
What This Code Means
Code 898 reflects that a refund was offset and applied toward an outstanding federal or state obligation. This transaction indicates that the refund amount was reduced by the offset amount. It does not indicate the nature of the debt in the code itself. The presence of code 898 means the refund was not issued in full because an offset occurred. The transcript entry will typically show the offset amount.
Where Users Usually See This Code
- On IRS account transcripts
- After refund issuance when reduced payment is observed
- During review of refund transaction history
Why This Code Appears
- An outstanding eligible debt existed
- Treasury Offset Program applied funds
- Refund was subject to legal offset
- Administrative offset procedures were triggered
What Typically Happens Next
- The refund amount is reduced by the offset
- The transcript shows the offset transaction entry
- Remaining refund, if any, may be issued
What This Code Is Not
- It is not a refund freeze
- It is not an audit code
- It does not specify the debt category in the transcript code alone
Troubleshooting Checklist
- □ Review the offset amount listed
- □ Compare refund issued amount to expected amount
- □ Monitor for related notice entries
- □ Consult official IRS resources for clarification
Notes And Edge Cases
Offset amounts are typically reflected directly in the transcript entry. In some cases, multiple offsets may apply. The offset program operates separately from normal refund processing but appears in transcript entries as transaction codes.