Recovery rebate

[dawnchappel1]

I requested a payment trace last summer got no response. I filed my 2021 taxes claimed the recovery rebate credit and was denied ive already received my taxes. Recently i contacted a tax advocate to find out about my stimulus and they put me through to irs. Finally a payment trace has been initiated on my transcripts the code 841 and 767 have recently posted to my account does this mean ill get my stimulus finally? And if so do i have to amend my taxes since they denied my recovery rebate and deducted the amount from my tax check?

[bluedeb · Accepted solution]

Seeing transaction code 841 (refund cancelled) on their tax transcript can be scary for many folks, particularly if they have been waiting for their refund for a while and not seeing it in their bank account as expected.

Banks or financial institution will generally reject IRS refund payments where the name and account numbers don’t match. The funds are returned to the IRS, which will then issue the refund payment via check to the tax payers home address on file.

What is code 841 on tax transcript?

Transcript Code (TC) 841 – This code is officially described as “Cancelled Refund Check Deposited” and means that the financial institution the IRS sent your refund to rejected the payment because the account details the IRS sent them does not match what they have on their systems.

Code 767 Generated Reversal of Refundable Credit Allowance

[bluedeb]

To add to my post above, you don't have to amend your return for the Recovery Rebate.  The IRS has corrected your information.  You should get a letter from the IRS, the letter can take 4 to 6 weeks to receive.