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
