IRS code 706: Credit transferred in from another year
- Effect:
- Credit moved in
- Posts as a:
- Credit
An overpayment from another of your tax years was applied to this one.
What code 706 means
Code 706 credits this year with an overpayment moved from another of your tax modules, such as another tax year.
Before the IRS issues a refund, its system checks all the modules in your account and applies the credit to any with a past-due balance. The year the money came from shows the matching debit, code 826.
Codes often seen with 706
Questions about code 706
Why did my refund go to another tax year?
Before refunding, the IRS applies an overpayment to past-due federal tax on your other years. The year that gave up the credit shows 826, and the year that received it shows 706.
Source
IRS title: Generated Overpayment Applied from Another Tax Module (Document 6209, Section 8A, page 8A-28).
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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?