Code 290 is a hold on your refund, not a denial

Code 290 appears on your IRS notice when the agency has placed a temporary hold on your refund. The hold means the IRS is reviewing your return for a specific reason before releasing the money. You will get your refund, but not until the IRS completes its review and removes the hold.

The IRS uses code 290 most often when there is a mismatch between what you reported and what the agency's records show — for example, a W-2 from your employer that does not match your tax return, or income reported to the IRS by a third party that you did not include. The hold gives the IRS time to investigate and confirm the correct amount before sending your money.

A code 290 hold typically lasts 30 to 60 days from the date on your notice, though some cases take longer if the IRS needs to contact your employer or another third party. You do not need to do anything while the hold is in place unless the IRS asks you for more information in the notice itself.

Key Takeaways

  • Code 290 means your refund is on hold while the IRS reviews your return, not that your refund is denied or lost.
  • The hold usually results from a mismatch between your return and records the IRS received from your employer, bank, or another source.
  • Most code 290 holds last 30 to 60 days, though complex cases may take longer.
  • If the IRS needs documents from you, the notice will say so; otherwise, wait for the hold to clear before your refund is sent.
  • You can track the status of your refund on the IRS website using Where's My Refund, which will update when the hold is removed.

Why the IRS places a code 290 hold

The IRS receives income information from employers (W-2s), banks and investment firms (1099s), and other payers throughout the year. When you file your tax return, the agency compares what you reported to what it already knows about you. If there is a gap — you did not report income the IRS has on file, or you reported an amount that differs from what a payer reported — the IRS flags your return for review.

Code 290 is the hold that covers this type of discrepancy. It does not mean you made a mistake or committed fraud. It means the IRS needs to verify the correct figure before it can calculate your final refund amount. The agency may contact your employer or the payer directly, or it may send you a notice asking you to explain the difference.

Other common reasons for a code 290 hold include claiming a dependent the IRS does not have on file, reporting a different filing status than in previous years, or claiming a tax credit that requires verification (such as the Earned Income Tax Credit). In each case, the hold is temporary and resolves once the IRS confirms the information.

How long a code 290 hold typically lasts

Most code 290 holds clear within 30 to 60 days of the date on your IRS notice. During this time, the IRS is reviewing your return and any supporting documents you provided, or it is waiting for information from a third party such as your employer.

If the IRS needs to contact your employer or another payer to verify information, the timeline can extend to 90 days or longer, depending on how quickly that party responds. Some employers take several weeks to reply to IRS inquiries, which delays the resolution of your case.

You can check the status of your refund at any time using the IRS's Where's My Refund tool on IRS.gov. This tool updates every 24 hours and will show you when the code 290 hold has been removed and your refund is being processed for payment.

What to do if you receive a code 290 notice

Read the notice carefully to see whether the IRS is asking you to provide additional information. If the notice includes a request for documents — such as a copy of a W-2, proof of a dependent, or an explanation of a discrepancy — send those documents to the address listed on the notice within the timeframe given. Responding promptly can speed up the resolution of your case.

If the notice does not ask for anything from you, do nothing. The IRS will complete its review on its own schedule, and your refund will be released once the hold is cleared. Do not call the IRS or try to contact the agency about the hold; the review is automatic and calling will not speed it up.

Keep the notice in a safe place. If you do not receive your refund within the timeframe the IRS provided, you can reference the notice number when you contact the IRS or use Where's My Refund to check the current status.

Tracking your refund while code 290 is in place

The IRS's Where's My Refund tool is the most reliable way to track your refund status while a code 290 hold is active. You can access it on IRS.gov by entering your Social Security number, filing status, and the exact refund amount from your return. The tool will show you the current status and, once the hold is removed, will tell you when your refund will be sent.

Where's My Refund updates once per day, usually overnight. If you check the tool and it still shows code 290, check again the next day. Do not refresh repeatedly within the same day, as the information will not change until the next update cycle.

If you filed your return electronically, your refund will be sent by direct deposit to the bank account you listed on your return. If you filed by mail, the IRS will send a check. The notice you received will tell you which method applies to your refund.

What happens after the code 290 hold is removed

Once the IRS removes the code 290 hold, your refund enters the normal payment cycle. If you chose direct deposit, the money will reach your bank account within one to three business days. If the IRS is sending a check, the check will arrive by mail within seven to ten business days of the hold being removed.

In some cases, the IRS may adjust your refund amount after reviewing your return. If this happens, the notice you receive will explain the adjustment and show the new refund amount. You will receive the adjusted amount, not the original amount you expected.

If the IRS determines that you owe money instead of receiving a refund, the agency will send you a bill with instructions on how to pay. This is rare when a code 290 hold is in place, but it can happen if the review uncovers unreported income or an error in your favor that needs to be corrected.

Code 290 versus other IRS hold codes

The IRS uses different codes for different types of holds. Code 290 specifically indicates a discrepancy between your return and third-party records. Other codes, such as code 570 (return under examination) or code 971 (notice issued), mean something different and require different actions on your part.

If your notice shows a code other than 290, follow the instructions on that notice. Each code has its own timeline and requirements. If you are unsure which code applies to your return, read the notice carefully or contact the IRS at the number listed on the notice.

Frequently Asked Questions

Can I get my refund before the code 290 hold is removed?

No. The IRS will not release your refund until the hold is cleared. The hold exists specifically to allow time for the review to complete. Once the review is done and the hold is removed, your refund will be sent within one to three business days if you chose direct deposit, or within seven to ten business days if you are receiving a check.

What if I disagree with the IRS about the discrepancy?

If the IRS sends you a notice asking for information and you disagree with what the agency is claiming, respond to the notice with an explanation and any supporting documents you have. Include copies of relevant documents such as W-2s, 1099s, or bank statements. The IRS will review your response as part of the hold resolution process.

Does code 290 mean I am being audited?

Code 290 is a hold, not an audit. It means the IRS is reviewing your return to resolve a discrepancy, but it is not the same as a formal examination. Most code 290 holds are resolved without any contact from the IRS beyond the initial notice. An audit is a more formal process and would be indicated by a different code and a separate notice.

What if I never received the notice about code 290?

Check Where's My Refund on IRS.gov to confirm whether a code 290 hold is actually on your return. If the tool shows code 290 but you did not receive a notice, the notice may still be in the mail. Wait a few more days. If you still do not receive it and you need to respond to the IRS, call the number on your most recent tax return or contact your local IRS office.

Can I file an amended return while code 290 is in place?

You can file an amended return (Form 1040-X) at any time, but doing so while a code 290 hold is active may complicate things. The IRS will be reviewing your original return, and filing an amended return may delay resolution. Wait until the code 290 hold is cleared, then file the amended return if you still need to make changes.