Playbook
How to read an IRS account transcript for a collection case
Short answer
An IRS account transcript lists every transaction on one tax year: return filing, assessments, payments, penalties, interest, and collection actions, each with a code and date. For a collection case, find the assessment date (TC 150 or later assessments), any suspension events, and the balance. The CSED is generally ten years from each assessment.
By the BestTaxSoftware.com editorial team. Updated . Prices checked on vendor sites that day.
Which transaction codes matter in collection?
| Code | Meaning | Why it matters |
|---|---|---|
| 150 | Return filed and tax assessed | Starts the 10-year collection clock for that assessment |
| 166 / 276 | Penalty for not filing or not paying | Candidates for first-time abatement |
| 290 / 300 | Additional tax assessed | Each has its own collection clock |
| 480 | Offer in compromise pending | Suspends the collection clock |
| 520 | Bankruptcy or litigation | Suspends the collection clock |
| 530 | Currently not collectible | Collection paused; clock keeps running |
| 971 (various) | Notices issued, installment agreements, and more | Read the description; it varies |
How do you calculate the Collection Statute Expiration Date?
Start from the assessment date and add ten years. Then add any time the clock was suspended: pending offers, pending installment agreement requests, bankruptcy, collection due process hearings, and certain other events listed in IRM 5.1.19. Each assessment has its own CSED.
Why do practitioners use software for this?
Because a client with six years and multiple assessments can have a dozen statute dates, each with suspensions. Transcript tools compute them; doing it by hand is where mistakes happen.
Questions practitioners ask
- What is the difference between an account and a wage and income transcript?
- An account transcript shows what the IRS assessed and collected. A wage and income transcript shows information returns filed about the taxpayer, like W-2s and 1099s, useful for preparing unfiled years.
- Does CNC status stop the CSED?
- No. The collection clock generally keeps running while an account is in CNC status.