Refund offset | Refund applied to debt

Industry

IRS / Tax

Canonical

/irs-tax/error-codes/refund-offset/

Last Updated

Feb 25, 2026

Summary

This status indicates that all or part of the refund was applied toward an outstanding obligation.

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What This Code Means

“Refund offset” reflects that the refund was reduced to satisfy a qualifying debt. It indicates administrative application of refund funds to another balance. The status does not represent denial but reduction of refund amount. Transcript entries such as code 898 or 820 typically accompany this activity. It signals internal allocation of funds rather than issuance of full refund.

Where Users Usually See This Code

On IRS account transcripts
In refund status tools after reduced payment
In mailed notices explaining offset

Why This Code Appears

Outstanding federal or state debt existed
Administrative offset procedures applied
Credit balances were used to satisfy liability
Treasury Offset Program initiated application

What Typically Happens Next

Remaining refund, if any, may be issued
Account balances update
Notice entries may appear

What This Code Is Not

It is not a freeze
It is not an audit
It does not represent fraud determination

Troubleshooting Checklist

□ Review transcript for offset amounts
□ Compare refund received to expected amount
□ Monitor for notice entries
□ Consult official IRS resources if clarification is needed

Notes And Edge Cases

Offsets may be partial or full. Transcript entries reflect the amount applied. Reviewing all entries clarifies net impact.

Related Codes

8 links

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