IRS code 706: Overpayment credit applied from another year
Quick answerA credit (overpayment) from another tax year or account was transferred in to pay this year's balance or to count as an estimated payment.
Transcript code706
MeaningOverpayment credit applied from another year
Action needed?Yes — see steps
What happens next
Shows on the receiving year; the matching transfer-out (826) appears on the year the money came from.
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What you should do
- Find the matching code 826 on the other year
- Check a CP49 notice if you received one
Frequently asked questions
What does IRS code 706 mean?
A credit (overpayment) from another tax year or account was transferred in to pay this year's balance or to count as an estimated payment.
What should I do?
Find the matching code 826 on the other year Check a CP49 notice if you received one
How long does it take?
Shows on the receiving year; the matching transfer-out (826) appears on the year the money came from.
Sources
- IRS: Understanding your IRS notice or letter
- IRS: Get Transcript
- Taxpayer Advocate Service (independent help inside the IRS)
Written by the editorial team and checked against the official sources above. See our editorial policy.
By the TranscriptCodes Editorial Team · Last reviewed 2026-11-12.