What Does Additional Tax Assessed $0.00 Mean? – Avoid This Mistake + FAQs

Additional Tax Assessed: $0.00 means the IRS has completed its review of your return or correction, and determined that you do not owe any extra taxes.

In other words, after examining your filing (or an adjustment like an amendment or audit), the IRS found no additional amount to charge you.

Did you know some IRS reviews end with no change in tax? For example, certain IRS audits of complex returns have no additional tax 80% of the time – a surprising win rate for taxpayers. 😮

Don’t panic if you see “$0.00” in that line: it’s generally good news. But what should you do next, and why did this happen? This in-depth guide will answer all your questions.

In this article, you’ll learn:

• 📌 The Clear Meaning: Exactly what “Additional Tax Assessed: $0.00” signifies and why it’s usually a relief for taxpayers.

• 🔎 Common Pitfalls: Mistakes to avoid when reading your IRS transcript or notice, so you don’t misinterpret a zero additional tax.

• 📑 Key Tax Terms: Definitions of important IRS codes, forms, and notices (like Code 290, CP2000, Notice of Deficiency, Form 1040X) that provide context to the $0.00 message.

• 📊 Real Scenarios: Detailed examples (with tables) of situations such as audits, amended returns, or identity verifications where you might see $0 additional tax, including how it plays out in IRS transcripts.

• 🌎 Law & State Differences: How federal tax law handles additional tax assessments, plus a state-by-state rundown confirming if states handle things differently or the same way.

Quick Answer: No Extra Tax Owed (and Why That’s Good News)

If your IRS transcript or notice shows “Additional Tax Assessed: $0.00,” it means no new tax was added to your original bill. In plain language, you’re not on the hook for any extra money beyond what was on your original return.

This message often appears as an IRS transaction code 290 on an account transcript, which is labeled “Additional Tax Assessed.” When the amount is $0.00, it indicates a zero balance change from a review or audit.

Why is this good news? Essentially, the IRS took a closer look at your return (or a specific issue) and found nothing that increases your tax. It’s like getting a report card with “no changes needed.” Some common reasons you might see Additional Tax Assessed: $0.00 include:

• Routine Processing: The IRS finalizes your return in their system. A code 290 with $0 may show up as part of closing out the file, confirming your originally reported tax stands with no extra assessment.

• Minor Corrections: The IRS corrected something on your return (e.g. a small error or update) but it didn’t change the tax you owe. They assess “additional tax” of $0 to signal the review is done without increasing your liability.

• Amended Return Processed: You filed a Form 1040X (Amended Return). The IRS processed it and determined it didn’t result in owing more tax. (You might even be due a refund or just broke even – we’ll explain later.)

• Audit or CP2000 No Change: Your return was audited or matched against third-party data (through a CP2000 underreporting notice), and you proved everything was correct or resolved the discrepancy. The result: no extra tax was needed, so the IRS records an additional tax of $0.

• Identity Verification Holds: If you had to verify your identity (for example, responding to a 5071C letter), the IRS may have put a temporary hold on your return. Once verified, they lift the hold and finalize your return with no changes – often logging a $0 additional tax as they resume normal processing.

In all these cases, “$0.00 additional tax” means the outcome is in your favor – there’s nothing more you need to pay. It’s essentially the IRS’s way of saying “We checked – all good, no extra tax.”

A Closer Look at Code 290 on Transcripts

On an IRS Account Transcript, you might see a line like:

This is a transaction code entry. Transaction Code (TC) 290 is the IRS code for an additional tax assessment or adjustment. When the amount is $0.00, it confirms no increase in your tax.

Often there will be a date next to it (which could even be a future date or the date the entry posts). A future date can simply be an internal processing date – not a due date for you. So if you see a future date with code 290 $0, don’t worry; it usually just indicates when that transaction is effective in the IRS system.

Key point: No news is good news. Unlike scary IRS letters showing you owe money, $0 additional tax means nothing was found to charge you. Now, let’s make sure you avoid some common misunderstandings about this status.

Common Misconceptions and Mistakes to Avoid

Seeing an IRS code or message can be confusing. Here are some common mistakes and myths about “Additional Tax Assessed: $0.00” – and the truth behind them:

• Mistake 1: “$0.00 Additional Tax” means the IRS hasn’t finished yet.
  Reality: If you see this on a transcript or letter, the IRS has finished its review for that item. People sometimes think $0 means “nothing happened,” but it actually means the review is complete with no change. It’s not a placeholder for more tax later (unless other issues are still open separately on your account).

• Mistake 2: Assuming $0 means a refund is coming (or not coming).
  Reality: “$0 additional tax” does not directly equal a refund. It just means you don’t owe more. If you were expecting a refund (say from an amended return or an adjustment in your favor), that refund is handled via a different code (often Code 846: Refund Issued on transcripts) or a check. So, you could still get a refund even though additional tax assessed is $0. Conversely, $0 additional tax doesn’t guarantee a refund – it could also mean truly no change at all (no extra tax and no refund).

• Mistake 3: Panicking at the word “Assessed”.
  Reality: The word “assessed” sounds formal and scary, but in this context it’s harmless. Assessment is just IRS jargon for recording a tax change. “$0 assessed” literally means no change recorded. So, don’t let the terminology frighten you – it’s basically a neutral or positive outcome.

• Mistake 4: Ignoring other notices or requirements.
  Reality: While $0 additional tax is good, don’t ignore any IRS notice that came with it (if any). For example, if you got a CP2000 notice about income matching and you responded, the final letter might show no additional tax. But make sure the issue is fully resolved. Or, if this $0 appears after an amended return, ensure you read any IRS communication to see if they mention a notice or explanation of changes. Sometimes the IRS will issue a Notice of Adjustment letter even if the net change is zero, explaining what they did.

• Mistake 5: Not informing your state (if required).
  Reality: If your federal return was reviewed or amended (even with no extra federal tax), check if you need to update your state tax return. Many states require you to report any changes to your federal return (typically within 30-90 days of the IRS finalizing). If the federal review changed your taxable income or credits (even though it didn’t change your tax due), it could affect your state taxes. Most of the time, no additional federal tax means no state change either, but it’s worth verifying. The last section of this article provides a state-by-state overview.

By being aware of these points, you can avoid confusion. The main thing is: $0 additional tax means you’re not owing more to Uncle Sam. Next, let’s clarify some terms and codes around this topic, so you fully understand the context.

Key IRS Terms and Codes Explained

To truly grasp the significance of “Additional Tax Assessed: $0.00,” it helps to know the lingo and documents the IRS uses. Here are definitions of key terms, notices, and forms that often relate to seeing a $0 additional tax outcome:

IRS Account Transcript & Transaction Codes

An IRS Account Transcript is a record of all transactions (like filings, payments, adjustments) on your tax account for a given year. Each transaction has a code and description.

For example, Code 150 means your original tax return was filed and the tax amount on that return was assessed. Code 290 (the star of our show) means an additional tax assessment or adjustment. When you see code 290 with $0, it indicates an adjustment was made but it resulted in no increase in tax.

Other common codes that might appear around the same time include:

• Code 806 for withholding credits,

• Code 766 for tax credits (like an earned income credit or additional child tax credit applied),

• Code 846 for refund issued,

• Code 971 for notice issued,

• Code 570/571 for freezes placed and removed.

These codes come with brief explanations on the transcript. If you request an account transcript (via the IRS online account or by mail/fax Form 4506-T), don’t be intimidated by the numbers. In short:

• Transaction Code (TC) 290 – “Additional Tax Assessed” – is an adjustment entry. If it’s $0.00, it usually signifies a review with no change.

• TC 300 – Similar to 290 but often used for audit assessments (deficiency). Again, if it were $0, that would mean an audit resulted in no change.

• TC 291/301 – Reversal of an assessment (like if they removed tax, possibly used if they initially added then removed, or if a claim was disallowed then allowed).

• TC 846 – This means a refund has been issued. If you expect a refund after your issue is resolved, look for this code in the transcript after the $0 additional tax entry.

Understanding these helps decode what happened on your account.

“Additional Tax Assessed” (What Is an Assessment?)

When you hear tax assessed, think officially put on the books. The IRS “assesses” tax when it records that amount as owed. When you file a return, the tax you calculate is assessed (code 150 does that).

If the IRS later finds you should owe more, they do another assessment (code 290 or 300 with a positive amount). Here, since the amount is zero, it’s an assessment of zero additional dollars.

No additional tax assessed is essentially a no-change result. In IRS speak, sometimes they might call this a no deficiency or no adjustment needed outcome. The IRS closes the review with nothing added to your balance. This could happen in an audit scenario, where they say “we proposed changes, but ended up with no changes.”

Notice CP2000 (Underreported Income Notice)

CP2000 is a notice the IRS sends if the income or deductions on your return don’t match what third parties reported (like W-2s, 1099s). It’s not a formal audit, but an automated underreporter inquiry. The CP2000 will propose additional tax (plus interest) if they think you left something out.

• If you agree with CP2000, you sign and send it back, then the IRS will assess that additional tax (e.g. code 290 with the amount they proposed, not zero).

• If you disagree, you can contest it by providing documentation. If the IRS accepts your response, they might revise the outcome. A best-case scenario is they agree you don’t owe the initially proposed amount. In that case, they would finalize the CP2000 issue with no additional tax. You might receive a letter saying no change or see on your transcript a code 290 with $0.00, indicating the CP2000 case was closed without assessing extra tax.

Remember, CP2000 is a proposal, not a bill – you get to respond. “$0 additional tax” is the happy ending if your response resolves the discrepancy.

Notice of Deficiency (90-Day Letter)

A Notice of Deficiency (also known as the 90-day letter) is a formal letter the IRS sends if they believe you owe additional tax after an audit or unresolved CP2000, and you haven’t signed an agreement. It states the amount of the deficiency (extra tax) and gives you 90 days to petition the U.S. Tax Court before they assess it.

How does this tie in with a $0 additional tax? If you receive a Notice of Deficiency and you disagree with it entirely, you can file a petition in Tax Court. If the case is resolved in your favor – say you prove you don’t owe what the IRS thought – the result could be no deficiency. In Tax Court terms, they might issue a decision that “the deficiency is $0.” That’s essentially legal-speak for “additional tax assessed: $0.00.”

If you never petition and the 90 days lapse, the IRS will assess the amount (which would then show up as an actual number on your account, not $0). So to have a $0 outcome after a Notice of Deficiency, usually you either provided information that made the IRS rescind the proposal or you won (or settled to $0) in court. It’s not very common to get a deficiency letter and end with $0 owed, but it can happen in disputes resolved in the taxpayer’s favor.

Form 1040X (Amended Tax Return)

Form 1040X is an amended tax return you file to correct or change something on your original return. Maybe you discovered a mistake or got another tax document late. When you file a 1040X, you either end up with:

• Additional tax to pay,

• A refund or credit due,

• or no net change.

After the IRS processes your amendment (which can take a while, often several months), they will send a notice of the results or you can check the Where’s My Amended Return tool. On your transcript, if the amendment resulted in no additional tax, you may see code 290 $0.00 with a cycle date. This indicates the IRS adjusted your account but it netted out to no extra tax owed.

For example, suppose you filed an amendment to correct your filing status but it didn’t change your taxable income – the IRS would update their records (perhaps generating a $0 assessment entry) and not send a bill.

If you claimed an extra deduction and got a refund, the transcript might show a $0 additional tax (since you didn’t owe more) and also a credit or refund issuance code for the money they owe you.

Tip: Always review any notice the IRS sends after an amendment. Often they’ll issue an CP21 series notice (like CP21B for a refund due from amendment, or CP21C, etc.) explaining what changed. If it’s CP21B with a refund, $0 additional tax just means no increase; your change resulted in a refund which they’ll send separately.

IRS Identity Verification Letters (5071C, 4883C) and Holds

Sometimes the IRS temporarily holds a return if they suspect identity theft or need verification, sending letters like 5071C or 4883C asking you to verify your identity. When you verify, the IRS continues processing your return. Often in these cases, your transcript will show:

• Code 570 (Additional account action pending – essentially a freeze) when the hold is placed.

• After you verify, Code 571 (Release freeze) or sometimes Code 290 $0 as they resolve the account and resume processing.

In this context, 290 $0.00 means the freeze was lifted and no change was made to your tax. It’s basically the IRS saying “we’re done verifying, and everything remains as you filed.” Shortly after, if you were due a refund, you’d see the refund issued code and get your money. If you weren’t due a refund, then everything just goes back on track with no changes.

IRS (Internal Revenue Service) and TAS (Taxpayer Advocate Service)

Just to clarify some entities:

• IRS: The tax authority that processes returns, issues refunds, and assesses any additional tax if needed. The IRS uses these codes and issues the notices we’re discussing.

• Taxpayer Advocate Service (TAS): This is an independent organization within the IRS that helps taxpayers resolve problems. If your issue (like an amended return or audit) is stuck for a long time, TAS might assist. While TAS doesn’t directly have to do with the code $0, it’s good to know they’re an option if, say, you believe your refund is delayed even after everything shows completed (including that $0 additional tax on transcripts).

Now that we’ve covered key terms, let’s look at some realistic scenarios where “Additional Tax Assessed: $0.00” comes into play, so you can see how it unfolds in practice.

Real-Life Scenarios of “$0.00” Additional Tax Outcomes

To make this concept crystal clear, let’s walk through a few realistic scenarios. These examples show when and why you might encounter Additional Tax Assessed: $0.00 and what happens next. Each scenario highlights a common situation faced by taxpayers:

Scenario 1: Audit with No Change in Tax

Situation: John’s tax return was selected for a random audit. The IRS wanted to verify his charitable donations and some business expenses. John had all his receipts and proved every deduction was legitimate.

Outcome: After the audit, the IRS did not find any mistakes or unreported income. They closed the audit as a no-change audit. John’s IRS account transcript for that year shows a code 300 or 290 with $0.00. Essentially, the IRS assessed no additional tax. He also received a letter stating that the audit resulted in no changes to his return (often called a “no change letter”).

What it means for John: He does not owe anything more. This confirms that his original return stands as filed. (And perhaps a sigh of relief for John that all that paperwork was in order!)

Key insight: A significant portion of IRS audits end this way. If you’re fully compliant and have documentation, an audit can conclude with no extra tax. Always keep your records – as John did – and an audit might be just a minor inconvenience instead of a bill.

Scenario 2: CP2000 Underreporter Issue Resolved

Situation: Jane received a CP2000 notice because the IRS’s records showed she forgot to include a $5,000 investment income on her tax return. The CP2000 proposed an additional $800 in tax. However, Jane realized that the investment was in her Roth IRA (which is non-taxable) – she had mistakenly received a form, but that income wasn’t actually taxable. She responded to the CP2000, explaining the situation and providing documentation.

Outcome: The IRS reviewed Jane’s response and agreed with her. They adjusted the CP2000 proposal down to $0. In Jane’s account transcript, a few months later, there’s an entry for 290 – Additional Tax Assessed: $0.00. She also got a closing notice from the IRS saying that no additional tax will be assessed from the CP2000 inquiry.

What it means for Jane: The IRS issue is fully resolved. She owes nothing more for that year. The $0 assessment confirms her tax return remains effectively unchanged after the review.

Key insight: Always respond to CP2000 notices with clear proof if you disagree. If the IRS is satisfied, the result can be no additional tax, just like Jane’s case. The transcript’s $0 entry is your confirmation.

Scenario 3: Amended Return Processed – No Extra Tax (Refund Instead)

Situation: Alex filed his taxes and then discovered he missed claiming an education credit. He submits a Form 1040X amended return to claim the credit, which would reduce his taxes. Initially, Alex had owed $200 on his original filing which he paid. With the amended return, he calculates he should get that $200 back (because the credit offsets the tax).

Outcome: After several months, the IRS processes Alex’s amended return. On the IRS transcript for that year, Alex sees Code 290 – Additional Tax Assessed: $0.00 with a date, and shortly after, a Code 846 – Refund Issued: $200.00. The IRS also sends Alex a notice (CP21B) stating they adjusted his return and he’ll receive a $200 refund. The $0 additional tax means the amendment did not cause an increase in tax; instead it resulted in an overpayment being refunded.

What it means for Alex: He successfully corrected his return. The $0 entry shows no new tax was added (in fact his tax liability went down), and the refund code confirms he’s getting money back. Essentially, the IRS agreed with his changes.

Note: If Alex’s amendment had resulted in him owing more (say he incorrectly claimed something originally), then code 290 would show that extra amount instead. But since it led to a refund, no additional tax was assessed.

Scenario 4: Identity Verification and Frozen Refund Released

Situation: Maria filed her return and was expecting a $1,500 refund. However, she got a 5071C identity verification letter instead of the refund, meaning the IRS put her return on hold until she proved her identity (a common anti-fraud measure). Maria went through the ID verification process online and confirmed her details.

Outcome: After verification, the IRS continued processing Maria’s return. Her account transcript showed a Code 571 (which releases a hold) and a Code 290 with $0.00 on the same date. A week or two later, a Code 846 – Refund Issued $1,500.00 appeared. The “Additional Tax Assessed $0.00” here was essentially the IRS resuming normal processing, confirming no changes to her tax, and then issuing her refund.

What it means for Maria: Everything is back on track. She didn’t owe anything extra – the IRS just needed to verify it was really her. The zero additional tax is a bookkeeping entry signaling the case is closed and her original return stands, which paved the way for the refund to be released.

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These scenarios show “$0.00 additional tax” in action. In each case, it’s a positive or neutral result:

• An audit or check concluded with no extra owed.

• A proposed increase was overturned or balanced out.

• A return was adjusted in the taxpayer’s favor (or at least not against them).

Sometimes it helps to compare scenarios with and without additional tax to appreciate the difference. Here’s a quick comparison of outcomes:

As you can see, $0.00 is the best-case scenario when your return is under review. Next, we’ll touch on legal and state aspects: what does the law say about additional tax assessments, and do states do anything different?

The Law Behind Additional Tax Assessments (Federal & State)

Understanding the legal backdrop can further clarify why “Additional Tax Assessed: $0.00” appears. Let’s break it down by federal rules first, then state-by-state practices.

Federal Law Overview: Assessments, Deficiencies, and Statutes

Under U.S. federal tax law, the IRS has the authority to assess taxes and make additional assessments if needed:

• The Internal Revenue Code (IRC) gives the IRS power to assess taxes based on returns (this happens when you file) and to assess deficiencies if they determine more tax is due later (after an audit, for example).

• A Deficiency is basically the IRS term for when they believe you paid less tax than you should have. If they propose a deficiency, they eventually formalize it by assessing additional tax unless you successfully challenge it.

No additional tax assessed means no deficiency was ultimately found. Perhaps the IRS considered there might be one, but either the time passed or they decided (or were convinced) otherwise.

A few relevant points in tax law:

• The IRS generally has 3 years from when you file to assess any additional tax (this is the statute of limitations on assessment, IRC §6501). If they don’t assess within that period (and no exceptions apply), they can’t charge more. So if an audit closes with no change, the clock may run out and you’re clear – effectively $0 will ever be assessed after that point.

• Before assessing a deficiency (extra tax) for most individual audits, the IRS must send a Notice of Deficiency (IRC §6212, §6213). If you go to Tax Court and win or settle fully in your favor, the result is an order of no deficiency – i.e. the IRS will not assess additional tax.

• If the IRS and you agree on no change during an audit (you sign an audit report that says no change or just verbally agree and get a closing letter), they won’t assess more tax. They might still make an entry of $0 to show the audit closed.

In practice, the IRS often uses code 290 with $0 to close out an examination or adjustment in their system. It’s an internal record-keeping step, reflecting that “we looked at this, and nothing was added.”

State-by-State: Does “Additional Tax Assessed $0” Exist for State Taxes?

When it comes to state income taxes, each state has its own processes. The specific phrase “Additional Tax Assessed: $0.00” is an IRS/internal federal thing. States do not use IRS transaction codes, but they have their own way of handling adjustments. Here’s what you need to know in general:

• If a state tax agency reviews your return (or if you amend your federal return), they will notify you of changes to your state tax. If it results in no change, many states simply won’t send a notice at all (no news means no change). Some states might send a letter stating no change was made, but it varies.

• States follow the federal lead: Most states require you to report federal changes. For example, if the IRS audit increased your income, you must tell the state and pay any state difference. If the IRS audit resulted in no change ($0 additional fed tax), typically there’s nothing to report (because your federal taxable income stayed the same). Some cautious taxpayers still inform the state that the IRS audit ended with no changes, just to close the loop.

• No state income tax: A handful of states have no personal income tax at all, so they won’t ever have a comparable situation.

To clarify the landscape, here’s a state-by-state summary of how states handle these issues or if the concept even applies:

(Table note: States in bold have no personal income tax, so they won’t have a comparable situation for individual taxpayers. States with an asterisk have limited income tax.)

As shown, most states mirror the federal outcome in the sense that if the IRS didn’t assess more tax, the state typically doesn’t either (unless the state itself identifies an issue under its own rules). The phrasing “Additional Tax Assessed $0.00” is not used by states, but the concept of “no change, no additional due” is universal.

Important: If you went through a federal review and it’s resolved with no extra tax, double-check your state’s rules. In many cases you do nothing, but for example, California and New York expect you to inform them of IRS audit results regardless of outcome (to be safe). It might just be a simple letter or form stating “IRS audited me for Year X and made no changes.” This prevents any confusion later if the state tries to reconcile records.

Now, let’s consider some pros and cons of getting this “$0 additional tax assessed” result, and how it compares to other outcomes or notices.

Pros and Cons of a “$0 Additional Tax” Result

While “no extra tax” sounds entirely positive (and mostly it is), there are a few pros and cons to be aware of regarding the situation surrounding that result:

In summary, the pros far outweigh the cons when you see no additional tax. The cons are mostly about the process that led to that point (time, uncertainty) and understanding the outcome. If you’ve been waiting on an IRS decision, $0 additional tax is essentially the green light that things are resolved in your favor.

Comparing Similar IRS Messages

It’s easy to mix up different zero-dollar messages. How is “Additional Tax Assessed: $0.00” different from other IRS statements like “Tax Due: $0.00”? Let’s compare a few so you know exactly what each one signifies:

• Tax Due: $0.00 vs. Additional Tax Assessed: $0.00
  Tax Due: $0.00 usually means after filing your return (or at a specific point in time), you have no balance to pay. For example, your tax bill was $5,000 and you had $5,000 withheld – so you owe nothing and you’re not getting a refund either (a perfect break-even). This can appear on a tax return summary or an IRS notice saying you have no amount due.
  Additional Tax Assessed: $0.00, on the other hand, means no extra tax was added on top of an existing amount. It specifically refers to an adjustment process (audit, amendment, correction) where the net result was zero. Think of it as “no change from what was already assessed.” So, “Tax Due $0” is about your overall balance, while “Additional Tax $0” is about a review that yielded no new balance.

• “No balance due” or “No payment required”
  These phrases might appear on IRS notices or transcripts indicating you don’t owe money at that time. They are essentially similar to “Tax Due: $0.00”. For example, after paying a bill or if an adjustment resulted in a wash, the IRS might say no balance is due. It’s a general statement of account status. Additional Tax Assessed $0 is more specific to the action of assessing additional tax.

• Refund Amount: $0.00
  If you see a refund amount of zero (say on a tax return or notice), it means you’re not getting a refund. Perhaps your payments exactly matched your liability, or an expected refund got applied elsewhere. This is different from additional tax $0, because you could have no additional tax but still get a refund (like Alex’s scenario earlier). Refund $0 just means no money is being returned to you.

• Balance: $0.00
  A generic term meaning you owe nothing and are owed nothing at that moment. This could be the final state after everything: for instance, if you originally owed $500, paid it, then went through a review that found you should get $500 back, you might end up with balance $0 after getting that refund – which aligns with additional tax $0 in the process, but here specifically it means all squared up.

In summary, Additional Tax Assessed: $0.00 is about the result of a specific IRS action (like an audit, correction, or adjustment), whereas terms like tax due $0 or refund $0 describe your overall account status. Here’s a quick comparison table for clarity:

Knowing the difference helps ensure you interpret IRS communications correctly. In our context, $0 additional tax assessed is a specific “no change” indicator, which is generally a positive outcome.

FAQ: Frequently Asked Questions

Finally, let’s address some common questions people have about “Additional Tax Assessed: $0.00” and related IRS situations. These quick FAQs are based on real queries from taxpayers:

Q: What does “Additional Tax Assessed $0.00” mean on my IRS transcript?
A: It means the IRS finished a review or adjustment of your return and did not find any extra tax for you to pay. It’s a no-change result.

Q: Do I owe money if it says additional tax assessed $0.00?
A: No. The $0.00 indicates you do not owe any additional amount. You’ve come out of the review with nothing more to pay.

Q: Is “Additional Tax Assessed $0.00” a bad thing?
A: Not at all. It’s generally good news. It means the IRS didn’t increase your tax. It usually signals closure of an issue in your favor or as filed.

Q: I see code 290 with $0 on my transcript. Should I be worried?
A: No need to worry. Code 290 $0 is typically just an internal record showing an adjustment occurred with no tax increase. It doesn’t indicate a problem.

Q: Will I get a refund after a $0.00 additional tax assessment?
A: Not necessarily. $0 additional tax just means no new tax was added. A refund would depend on if you overpaid or became eligible for a credit. Check if there’s a refund code (846) or if the IRS sent a refund notice.

Q: Why is there a future date next to the $0 additional tax on my transcript?
A: The date is an IRS processing date (or cycle date). A future date can be a placeholder for when the adjustment is officially effective. It doesn’t mean you have to do anything on that date.

Q: Do I need to respond or do anything when I see “additional tax assessed $0.00”?
A: Usually, no action is required. It’s an informational entry. If it came with a letter, just keep the letter for your records. There’s nothing to pay or contest since it’s zero.

Q: How long after seeing $0 additional tax will I get my refund (if one is due)?
A: If a refund is due, it often follows soon after the $0 posting. Typically, you might see a refund issued within a few weeks. Monitor the IRS Where’s My Refund or your transcript for code 846.

Q: Is “additional tax assessed $0” the final step of an audit or amendment?
A: Yes, it usually indicates the IRS has finalized the audit/adjustment. It’s effectively the closing action showing no increase in tax. For an audit, you might also get a no-change letter; for an amendment, a notice of adjustment.

Q: What’s the difference between $0 additional tax and a $0 balance due?
A: $0 additional tax refers to a specific adjustment where nothing was added. A $0 balance due means you don’t owe anything overall. You could have a $0 additional tax but still have a balance or refund depending on your original return, or vice versa.

Q: I got a CP2000 and responded. Now my transcript shows $0 additional tax. Is the issue resolved?
A: Yes. If the transcript has $0 for the CP2000 adjustment, the IRS likely accepted your response and closed the case with no extra tax. You should receive a letter confirming no change.

Q: Can “additional tax assessed $0” change later or be reversed?
A: It’s rare. Once an issue is closed with no tax due, the IRS typically won’t revisit it unless new information surfaces or you initiate something (like another amendment). The statute of limitations usually prevents new assessments after a period of time.