One of the documents used to determine someone’s true tax situation is the IRS tax transcript. When you owe money to the IRS it is not uncommon for them to send a variety of letters explaining your tax situation. The longer the tax goes unpaid the more threatening the letters seem to become. These letters should not be ignored as they contain important instructions and deadlines that should not be overlooked.
An IRS tax transcript helps you determine what the best course of action is when you owe money to the IRS. It also shows you the amount of tax you have paid in previous years and your income history.
How Can I Get My IRS Tax Transcript?
The transcript can be confusing containing many strange letters and codes, such as IRS code 806, that might be foreign to the average person. Code 806 shows the paid tax or credits that the IRS has on file for your account. The tax could be from a variety of sources including tax withheld by your employer or someone who gave you a Form 1099.
You can access your tax transcript by several methods. One way is by creating an online account at the IRS website. You may also call the IRS and speak to a live person to get the information that you need. You may also request that the tax transcript be mailed to you, which typically takes about a week.
TIP: To create an account on the IRS website you may be asked to provide a photo id or other method to verify yourself.
More on IRS Code 806
Your tax transcript may show IRS code 806 as a negative or positive number. If code 806 appears as a negative number it means a refund is due to you.
If you’ve received your transcript and are still confused or have a problem with the IRS feel free to contact us.