IRS code 301: Tax reduced by examination
- Effect:
- Reduces tax
- Posts as a:
- Credit
An examination or appeals decision reduced the tax on this year.
What code 301 means
Code 301 abates, meaning reduces, tax assessed earlier on the return (150) or by a 290 or 300, in whole or in part, as the result of an examination or appeal. Interest charged on that tax is reduced too where it applies.
It releases the same holds as code 300. If the reduction leaves the year overpaid, a refund (846) can follow, possibly with interest (776).
Codes often seen with 301
- 300 Additional tax assessed by examination An examination or appeals decision added tax to this year.
- 291 Prior tax reduced or removed The IRS reduced or removed tax it had assessed earlier.
- 421 Examination indicator closed The examination indicator (420 or 424) was reversed.
- 846 Refund issued The IRS issued a refund for the amount shown.
Source
IRS title: Abatement of Tax by Examination or Appeals (Document 6209, Section 8A, page 8A-13).
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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?