Penalties and interest

IRS code 196: Interest charged

Interest the IRS charged on tax that wasn't paid on time.

What code 196 means

Code 196 is computer-generated interest due on the account.

It's assessed at set points, such as when the IRS sends the first balance-due notice, or an adjustment notice after a 290 or 300 posts. A reduction of this interest posts as code 197.

Codes often seen with 196

• 290 Additional tax assessed The IRS adjusted the year after the return posted. A $0.00 amount means no tax change.
• 300 Additional tax assessed by examination An examination or appeals decision added tax to this year.
• 276 Failure-to-pay penalty A penalty for tax not paid by the date it was due.

Source

IRS title: Interest Assessed (Document 6209, Section 8A, page 8A-9).

• IRS Document 6209 (2023), Section 8A: Master File Codes
• Taxpayer Advocate Service: Decoding IRS Transcripts, Part II

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Decode a cycle code

Turn an 8-digit cycle like 20261505 into the posting week and day.

More penalties and interest codes

• 170 Estimated tax penalty
• 176 Estimated tax penalty, computed by the IRS
• 276 Failure-to-pay penalty

See all 39 transcript codes

TTOC Finder is independent and isn't affiliated with the IRS. This page explains what the code means in general. For your own account, check your IRS online account or Where's My Refund?