How to read a business transcript
An account transcript lists one tax period of one type of account (a module), and each line is a transaction: a three-digit code, a date, an amount and sometimes a short description. The code says what happened. Debits add to what you owe (tax, penalties, interest); credits reduce it (payments, abatements, credits moved in). A code ending in an R on some transcripts means the transaction was reversed.
The module is identified by its MFT, the master file tax code. These are the ones a payer works with:
| MFT | Account |
|---|---|
| MFT 01 | Form 941 |
| MFT 10 | Form 940 |
| MFT 12 | Form 1042 |
| MFT 13 | Civil penalties, including 1099 penalties (IRC 6721 and 6722) |
| MFT 16 | Form 945, backup withholding and other nonpayroll withholding |
Penalties are usually posted in pairs: an assessment and, if relief is granted, an abatement with the next code up. TC 240 and TC 241 for the civil penalty behind a 972CG, TC 186 and TC 187 for a deposit penalty, TC 166 and TC 167 for a late return.
The codes payers see most
Returns and assessments
| Code | IRS title | What it means for a payer |
|---|---|---|
| TC 150 | Return Filed & Tax Liability Assessed | The return posted and the tax it reports was assessed. On a Form 945 transcript (MFT 16) the amount is the backup withholding you reported for the year. |
| TC 290 | Additional Tax Assessment | Additional tax assessed after the return posted, for example a corrected Form 945 or an IRS adjustment. |
| TC 291 | Abatement Prior Tax Assessment | Tax that was assessed has been reduced. |
| TC 300 | Additional Tax Assessment by Examination or Appeals. | Additional tax assessed by an examination or by Appeals. |
| TC 301 | Abatement of Tax by Examination or Appeals | Tax reduced by an examination or by Appeals. |
| TC 976 | Posted Duplicate Return | A second return for the same period posted as a duplicate (or amended) return. |
| TC 977 | Posted Amended Return Posted Consolidated Generated Amended, Late Reply, or DOL Referral | An amended return posted. |
Penalties and interest
| Code | IRS title | What it means for a payer |
|---|---|---|
| TC 166 | Failure to File Penalty | The failure-to-file penalty the computer assesses when a return posts after its due date. |
| TC 186 | FTD (Deposit) Penalty Assessment | The failure-to-deposit penalty the computer assesses from your deposits and the return. |
| TC 187 | Abatement of FTD Penalty Assessment | The deposit penalty was reduced or removed, for example after reasonable cause, first-time abate or automatic relief. |
| TC 240 | Assessment of Miscellaneous Civil Penalty | A miscellaneous civil penalty. Information return penalties under IRC 6721 and 6722 (the 972CG penalty) post this way, usually on a civil penalty module (MFT 13), with a penalty reference number that says which penalty it is. |
| TC 241 | Abatement of Miscellaneous Civil Penalty | The civil penalty was reduced or removed. After a successful 972CG response or abatement request, this is the line you want to see. |
| TC 276 | Failure to Pay Tax Penalty | The failure-to-pay penalty: tax or an assessment was not paid by its due date. |
| TC 277 | Abatement of Failure to Pay Tax Penalty | The computer reduced or removed the failure-to-pay penalty. |
| TC 286 | Bad Check Penalty | The dishonored payment penalty the computer assesses when a payment is reversed. |
| TC 196 | Interest Assessed | Interest charged on unpaid tax or penalty. |
| TC 197 | Abatement of Interest Assessed | Interest was reduced or removed, usually because the tax or penalty it was charged on was reduced. |
Payments and credits
| Code | IRS title | What it means for a payer |
|---|---|---|
| TC 610 | Remittance with Return | A payment sent with the return. |
| TC 650 | Federal Tax Deposit | A federal tax deposit (EFTPS) credited to the period. |
| TC 670 | Subsequent Payment | A payment made after the return, or before it posted. |
| TC 690 | Designated Payment of Penalty | A payment you designated to a penalty. |
| TC 706 | Generated Overpayment Applied from Another Tax Module | An overpayment from another period was applied here. |
| TC 710 | Overpayment Credit Applied from Prior Tax Period | An overpayment from the prior period was applied here. |
| TC 820 | Credit Transferred | A credit was moved out of this period by hand. |
| TC 826 | Overpayment Transferred | An overpayment here was applied to another period that owed. |
| TC 846 | Refund of Overpayment | A refund was issued. |
| TC 898 | BFS TOP Offset | Part of a refund was taken by the Treasury Offset Program for another debt. |
Holds, filing status and collection
| Code | IRS title | What it means for a payer |
|---|---|---|
| TC 142 | Delinquency Investigation | A delinquency investigation was opened because a required return was not filed, often after an unanswered CP259. |
| TC 470 | Taxpayer Claim Pending | A claim is pending, for example a Form 843 or an abatement request. Balance-due notices pause while it is considered. |
| TC 472 | Reversal of Taxpayer Claim Pending | The pending-claim hold was removed. Notices resume if a balance remains. |
| TC 530 | Currently not Collectible Account | The balance has been marked currently not collectible. It is still owed and interest continues. |
| TC 560 | Waiver Extension of Date Assessment Statute Expires | The assessment statute date was extended, for a Form 945 typically by Form SS-10. |
| TC 570 | Additional Liability Pending and/or Credit Hold | A hold that stops credits from being refunded or moved, usually while more tax is pending. |
| TC 582 | Lien Indicator | A federal tax lien was filed for this period. |
| TC 590 | Satisfying Trans. | The IRS accepted that no return was required for this period. |
| TC 591 | Satisfying Trans. | The IRS accepted that no return is required for this period or later ones, for example after you closed the Form 945 filing requirement. |
| TC 960 | Add/Update Centralized Authorization File Indicator Reporting Agents File | A representative or reporting agent was added, so notices can go to them too. |
| TC 971 | Miscellaneous Transaction | A miscellaneous action. What it means depends on the action code shown next to it on the transcript. |
Questions people ask
Where does a 972CG penalty show on a transcript?
As a TC 240, a miscellaneous civil penalty, usually on a civil penalty module (MFT 13) for the tax year, with a penalty reference number identifying it. If the penalty is reduced after your response, a TC 241 posts for the amount removed. The penalty reference code decoder explains the reference numbers.
Where do these definitions come from?
From IRS Document 6209, the IRS's own reference to its codes, published at irs.gov/downloads/irs-6209. This decoder uses Section 8A of the 2023 edition. Lines marked for official use only are redacted in the public edition and are not included. The plain-English notes are ours.
How do I get a transcript for my business?
Through your business tax account or a tax professional with authorization, or by calling the IRS business line. Ask for the account transcript for the form and period, for example Form 945 for 2025.
What does TC 971 mean?
A miscellaneous transaction. Its meaning depends on the action code next to it, which the transcript usually spells out in words, such as a notice issued or a collection status change.