IRS code 291: Prior tax reduced or removed
- Effect:
- Reduces tax
- Posts as a:
- Credit
The IRS reduced or removed tax it had assessed earlier.
What code 291 means
Code 291 abates, meaning reduces or removes, tax assessed earlier on the return (150) or by an adjustment (290 or 300), in whole or in part. Interest charged on that tax is reduced too where it applies, as code 197.
It releases the same holds a 290 does. If the reduction leaves the year overpaid, you may get a refund (846), possibly with interest (776).
When an amended return lowers your tax, the change posts as a 291, or as a 301 if it went through an examination.
Codes often seen with 291
- 290 Additional tax assessed The IRS adjusted the year after the return posted. A $0.00 amount means no tax change.
- 301 Tax reduced by examination An examination or appeals decision reduced the tax on this year.
- 977 Amended return filed Your amended return posted. Any amount here is a payment sent with it, not a change in tax.
- 846 Refund issued The IRS issued a refund for the amount shown.
- 776 Interest paid to you The IRS credited interest it owes you on an overpayment.
Source
IRS title: Abatement Prior Tax Assessment (Document 6209, Section 8A, page 8A-12).
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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?