What are the meanings of the Debt Indicator (DI) Codes on my clients IRS acknowledgments?
The IRS designed DI Codes specifically for Refund Anticipation Loans (RALs). The DI code is present in all IRS e-file acknowledgment files. The DI indicates whether the taxpayer owes a debt to the IRS or one of the agencies managed by the Financial Management System (FMS). The debt indicator codes are N (None), I (IRS), F (FMS), and B (Both): N (None) Indicates that no debt was found in either the FMS or IRS files I (IRS) Indicates that a debt was found in the IRS files for this return F (FMS) Indicates that a debt was found in the FMS files for this return B (Both) Indicates that a debt was found in both the FMS and IRS files for this return FMS debts are for past due student loans, child support, federal taxes, state taxes, or other governmental agency debts. If the taxpayer is expecting a refund, it may be offset if a debt is owed. The debt indicator code may be shared with the taxpayer. The taxpayer should contact the IRS directly for an explanation. If you need to inquire about a
