IRS code 480: Offer-in-compromise pending

An Offer in Compromise is under consideration; levies are generally paused. Here is what it means, what usually happens next, and what to do.

Collection & legal statusHold or watchTransaction code 480Free transcript decoder

What TC 480 means

On your account transcript it reads: 480  Offer-in-compromise pending Hold or watch

TC 480 shows an Offer in Compromise is pending on the account. While it is being considered — and for 30 days after a rejection, plus during a timely appeal — the IRS generally will not levy.

Also written as: IRS code 480, code 480 on transcript, 480 IRS code, transaction code 480.

What usually happens next

The offer is accepted (TC 780), rejected or returned (TC 481), or withdrawn (TC 482). As a term of the offer, the IRS generally keeps refunds for periods through the year an offer is accepted and applies them to the balance.

TC 480 with other codes

On the same transcriptWhat it usually means
480 → 780Offer accepted.
480 → 481Offer rejected or returned; appeal rights may apply.
480 → 482Offer withdrawn.

What to do about TC 480

1

Stay compliant during the offer

File and pay current-year taxes on time.

2

Answer document requests fast

Late responses get offers returned.

3

If rejected, consider an appeal

The rejection letter explains the window.

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Notices and guides that go with TC 480

Frequently asked questions

What happens after TC 480?

The IRS reviews the offer; the outcome posts as 780 (accepted), 481 (rejected or returned) or 482 (withdrawn).

Does TC 480 stop collection?

Levies are generally suspended while the offer is pending, but interest continues.

Where do I see TC 480?

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.

Is "IRS code 480" the same as TC 480?

Yes. IRS code 480, code 480 on transcript, transaction code 480 and TC 480 all refer to the same three-digit transaction code the IRS posts to your account.

Other transcript codes