What Does Star Mean on IRS Transcript

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What Does Star Mean on IRS Transcript?

When reviewing your IRS transcript, you may notice various symbols and codes that can be confusing at first glance. One of the symbols you may come across is a star (*) next to certain entries on the transcript. So, what does the star mean on an IRS transcript? Let’s delve into this topic and explore its significance.

The star symbol on an IRS transcript indicates that there has been a change or an adjustment made to the specific line item associated with it. This could be due to corrections made by the IRS, amendments filed by the taxpayer, or any other changes made during the course of the tax return processing. The star is used to draw attention to these modifications and ensure that they are properly accounted for.

The presence of a star on your IRS transcript can have different implications depending on the context. Here are a few frequently asked questions to help you better understand the meaning of the star symbol:

FAQs:

1. What if there is a star next to my income entry?
If you see a star next to an income entry, it means there has been a change or adjustment made to your reported income. This could be due to additional income reported by an employer or corrections made by the IRS.

2. What if there is a star next to my deduction entry?
If there is a star next to a deduction entry, it signifies that changes or adjustments have been made to your claimed deductions. This could be due to disallowed deductions, corrections made by the IRS, or additional deductions claimed during the processing of your return.

3. What if there is a star next to my tax payment entry?
The star next to a tax payment entry indicates that changes or adjustments have been made to the tax payment amount reported. This could be due to corrections made by the IRS, amended returns filed, or additional payments made after the initial filing.

4. What if there is a star next to my refund entry?
If you notice a star next to your refund entry, it means that changes or adjustments have been made to the refund amount initially reported. This could be due to corrections made by the IRS, amended returns filed, or offsetting of the refund against outstanding liabilities.

5. What if there are multiple stars on my transcript?
Multiple stars next to different entries suggest that multiple changes or adjustments have been made to different line items on your tax return. It is advisable to review the associated codes and explanations provided on the transcript to understand the specific modifications made.

6. Will the star affect my tax liability?
The star symbol itself does not directly impact your tax liability. It simply serves as a notation to highlight changes or adjustments made to specific line items on your tax return.

7. Do I need to take any action if there is a star on my transcript?
If you come across a star symbol on your IRS transcript, it is essential to carefully review the associated codes and explanations to understand the nature of the modifications made. Depending on the circumstances, you may need to take appropriate action, such as responding to an IRS notice or providing additional documentation.

8. Can I request a copy of my IRS transcript?
Yes, you can request a copy of your IRS transcript online, by mail, or by phone. The transcript will provide you with a detailed record of your tax return, including any changes or adjustments made.

In conclusion, the star symbol on an IRS transcript indicates changes or adjustments made to specific line items on your tax return. Understanding the meaning of the star is crucial to ensure that you are aware of any modifications made by the IRS or any actions required on your part. Review your transcript carefully and consult a tax professional if you have any concerns or questions regarding the starred entries.
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