IRS Transcripts

Code 290 on Your IRS Transcript: What "Additional Tax Assessed" Means (2025)

By Angeline Balsitis, EA · Reviewed by Melissa Ly, Chief Tax Officer · Updated November 14, 2025 · Editorial Standards

What code 290 actually means

Your IRS account transcript is a line-by-line history of your account for a single tax year. Each line has a three-digit transaction code. Code 290 is one of the most common — and most misread. It simply means additional tax assessed: the IRS finished looking at something on your account and posted the result.

The number next to the code is what matters. A Code 290 with a dollar figure means tax was added. A Code 290 for $0.00 — by far the version that worries people most — usually means the IRS reviewed your account and decided to add nothing at all. New to reading these line items? Start with our guide on how to read an IRS account transcript, then come back here.

Why a code 290 appeared on your account

Code 290 shows up for several routine reasons. The most common are:

• A review closed out. The IRS placed a temporary hold or "freeze" on your account, looked into it, and posted a Code 290 to release the hold. A $0.00 amount here means "we checked, nothing changes."
• An amended return or adjustment was processed. When the IRS finishes an adjustment, it often records a Code 290 to lock in the new figures.
• A document-matching review. If the income on your return didn't match the W-2s and 1099s the IRS received, you may have gotten a CP2000 notice first. When that wraps up, a Code 290 posts the agreed change — sometimes $0.00, sometimes a balance.
• A penalty or examination assessment. After an audit or a penalty determination, the additional tax is recorded as a Code 290, often paired with a CP22A notice explaining the change.

The IRS doesn't email you a play-by-play. The transcript is how the activity is logged, which is why so many people find a Code 290 before they fully understand it. You can pull your own records anytime — here's how to get your IRS transcript online.

Code 290 for $0.00 vs. a dollar amount

This is the part that causes the most panic, so let's be specific.

If your Code 290 reads $0.00: the IRS reviewed something and assessed no additional tax. This is generally good news. It frequently appears right before Code 846 (refund issued), meaning a held refund is about to be released. You don't owe anything from a $0.00 line.

If your Code 290 shows a dollar amount: the IRS added that much tax to your account. You'll usually see related lines too — Code 196 (interest charged) or Code 276 (failure-to-pay penalty). A bill follows by mail. The total you owe is the new tax plus any penalties and interest stacked on top.

Here's a worked example. Say your transcript shows Code 290 — $1,200, plus Code 276 — $36 and Code 196 — $48. Your balance from that activity is $1,284. The failure-to-pay penalty runs at 0.5% of the unpaid tax per month, and interest compounds daily, so that figure keeps climbing until the balance is paid or a plan is in place.

What happens if you ignore a balance from code 290

If your Code 290 created a real balance and you do nothing, the IRS collection machine takes over. The sequence is automated and predictable:

1. CP14 — your first bill for the new balance. No enforcement yet.
2. CP501 / CP503 — reminder notices. The balance keeps growing each month.
3. CP504 — Notice of Intent to Levy. The IRS can seize a state tax refund, and a federal tax lien becomes possible.
4. LT11 / Letter 1058 — Final Notice. After 30 days, the IRS can garnish wages and levy bank accounts. You have appeal rights here — but fewer good options than you have today.

The takeaway: a Code 290 balance is cheapest to handle the moment it appears. Waiting only adds penalties and interest.

What if you disagree with the code 290 assessment?

You don't have to accept an additional assessment you believe is wrong. Depending on how it was made, your options include:

• Respond to the notice. If a CP2000 or examination letter is still open, replying with documentation may reverse or reduce the assessment — which would show up later as a Code 291 (reduced or removed prior tax).
• Request audit reconsideration. If the tax was assessed after an audit or a substitute return and you have records that weren't considered, the IRS can reopen and adjust it.
• Ask for first-time penalty abatement. If penalties came with the assessment and this is your first slip in years, the failure-to-pay penalty may be removed entirely.

How to respond to a code 290, step by step

1. Read the amount, not just the code. $0.00 means no change. A dollar figure means tax was added.
2. Confirm the balance. Log into your IRS online account and compare the transcript total to any notice you received.
3. Pull the full transcript. Use the IRS Get Transcript tool and read the lines around the 290 — look for Code 846 (refund), 196/276 (interest and penalty), or 291 (reduction).
4. If you owe and agree: pay or set up a plan at IRS.gov/payments before the notice deadline to stop the collection sequence.
5. If you disagree: respond in writing with proof, or pursue audit reconsideration. Keep copies of everything.
6. If the balance is large or you have unfiled years: get a professional review first — the order you fix things in changes what you end up paying.

Code 290 questions, answered

This guide is general information, not tax or legal advice for your specific situation. Eligibility for IRS programs depends on individual facts and circumstances; no outcome is guaranteed.

Related: how to read an IRS account transcript, the CP22A notice explained, and what a CP2000 notice means — or browse all guides.