Refund rejected | Refund not approved for issuance

Industry

IRS / Tax

Canonical

/irs-tax/error-codes/refund-rejected/

Last Updated

Feb 25, 2026

Summary

This status indicates that the refund was not approved in its original form and processing did not result in issuance.

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What This Code Means

“Refund rejected” reflects that refund issuance was not completed as originally calculated. It may result from adjustments, review findings, or discrepancies identified during processing. The status does not necessarily indicate wrongdoing. Transcript entries typically show assessment or adjustment codes explaining changes. It represents denial or modification of expected refund amount.

Where Users Usually See This Code

In refund status tools
On account transcripts with adjustment entries
After review procedures

Why This Code Appears

Return adjustments reduced refund to zero
Review procedures identified discrepancies
Offset or compliance actions occurred
Refund calculation changed

What Typically Happens Next

Account balance may update
Notices may be issued
Additional adjustment entries may post

What This Code Is Not

It is not automatically an audit
It is not a freeze status
It does not specify fraud determination

Troubleshooting Checklist

□ Review transcript adjustment entries
□ Compare updated balance with original filing
□ Monitor for notice entries
□ Consult official IRS resources if clarification is needed

Notes And Edge Cases

Refund rejection may result from recalculation rather than penalty. Transcript review provides clarity on net change. Notices typically explain the reason for adjustment.

Related Codes

8 links

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