What is code 846 on irs transcript?

Code 846 on an IRS transcript typically indicates a refund issued to the taxpayer. This code is used to show that a refund has been processed and is on its way to the taxpayer. It may appear on a transcript after a tax return has been processed and the IRS has determined that a refund is due to the taxpayer. The refund amount will also be listed on the transcript along with the date it was issued.