Previously assessed tax was reduced — often from an amended return or allowed claim. Here is what it means, what usually happens next, and what to do.
On your account transcript it reads: 291 Abatement of prior tax assessment Normal / good news
TC 291 reduces tax that was previously assessed — commonly because an amended return lowered your tax, a claim was allowed, or an earlier adjustment was reversed.
Also written as: IRS code 291, code 291 on transcript, 291 IRS code, transaction code 291.
If the reduction creates an overpayment, it can be refunded (846, sometimes with 776 interest) or applied to another balance. If you still owe, the balance drops accordingly. A notice usually explains the change.
| On the same transcript | What it usually means |
|---|---|
| 977 → 291 → 846 | Amended return processed, tax reduced, refund issued. |
| 470 → 291 → 471 | Claim allowed; collection hold released. |
The account balance line reflects the reduction.
846, 826 or 836 shows where the resulting credit went.
It documents the corrected liability.
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Decode my transcript →Only if the reduction creates an overpayment. If you still owed a balance, it reduces the amount due instead.
Usually an amended return or claim that lowered your tax was processed, or a prior adjustment was reversed.
On your IRS account transcript for the tax year — in your IRS Online Account under tax records, or by mail using Form 4506-T. The transactions section lists each code with its description, date and amount. Return transcripts do not show transaction codes.
Yes. IRS code 291, code 291 on transcript, transaction code 291 and TC 291 all refer to the same three-digit transaction code the IRS posts to your account.