IRS codes for refund applied from last year

Forum|Forum|1 year ago
February 21, 2025
2 replies
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I looked up my transcript at IRS. I had applied $xx from last year. It is showing twice on my transcript .

4/15/24 code 666 $xx Transferred in and

4/15/24 code 710 $xx Apply from 2023

So my payment total at the top is too high. Is that ok? They haven't processed my return yet. I hope they don't add it to my refund and then later need it back.

Not A Product Question

M

MonikaK1

It does appear that the amount was posted twice under different codes, but is on hold waiting for your return to be processed.

IRS Master File Transaction code 666 represents "Estimated Tax Credit Transfer In"

When taxpayer claims more ES credits than are posted in tax module, settlement is frozen and a TC 667 is generated and resequenced to search the spouse’s tax module. TC 666 represents the amount of ES credits transferred-in from the spouse’s module (may be zero if none available or spouse’s account is not found) and freeze is released. Also, credits to a deceased taxpayer’s spouse’s account. (Julian 999) Initialized when a CCC “F” return posts requesting credit elect.

Transaction code 710 represents "Overpayment Credit Applied from Prior Tax Period"

Credits Tax Module for amount of overpayment from prior year’s return which taxpayer elects to apply to the succeeding year’s estimated tax. . Also used to apply certain credits arising from adjusted employment tax returns. If Document Code 48, it is transferred from one tax period to another within the ADP system and therefore must be accompanied by TC 830. Document Code 58 is used during conversion to ADP to transfer these credits from the District Office to the proper Tax Module on the Master File.

You could either attempt to contact the IRS directly or continue to monitor the account to see how the payment is ultimately settled when your return is processed. See if either transaction is reversed: 710 can be reversed with input of 712, and 666 may be reversed with 662 or 667.

IRS Pub 6209 Master File Codes

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VolvoGirlAuthor

Employee

Thanks Monica! I had a problem because my husband died in 2023 (Joint) and I applied some to 2024. But they sent me a letter saying they didn’t know what to do with the applied amount. I wrote them back saying to apply it to me. Couple other letters back and forth. First time I ever applied to next year. That was a mistake.

VolvoGirlAuthor

Employee

UPDATE: When I looked up my refund it had Action Required and a special phone number to call. I called it and got right in! I explained what happened and she fixed it. She said my account was frozen. They had written me a letter when I filed 2023 asking what to do with the amount I applied to 2024 because my husband was primary and he died in 2023. I wrote them back saying to apply it to my account. Which they did but also the computer automatically applied it to me so it was on my account twice. She got rid of the duplicate.

She couldn't believe I called in (especially because I was reporting too much applied) and that I was on top of it! She released my refund. If I don't get it by April 4 to call back.