They may simply need more information and nothing will be affected. If you decide to file your appeal within the IRS, go to your local appeals office. To clear this issue, contact them at: IRS Tax Help Line for Individuals (800) 829-1040. June 7, 2019 4:27 PM. Or you can get your taxes done right, with experts by your side with TurboTax Live Assisted. Why Would My Tax Return Be Audited or Under Review? TurboTax customersweve started your estimate. The initial tax topic 151 letter is a notification that your tax return is under review. I just called the number and input all my info and it says that I don't have any debts. Hand off your taxes, get expert help, or do it yourself. This is good or bad, depending on your situation. Make new rules and revise old ones, like the legislative branch; Hold hearings about how to interpret and apply those rules, like the judicial branch; and. Whichever way you choose, get your maximum refund guaranteed. The notice informs taxpayers of the amount of the debt and the options available to them for resolving the debt and the status of their refund. Should You Hire a Debt Settlement Company or Do It Yourself? Anyone else received this update? If you do consider it bad news, keep in mind that interactions with tax authorities can get much worse, such as in cases of tax fraud. However, if you disagree with the tax topic 151 classification, the easiest and most cost-effective way to appeal the decision is to take it up with the IRS directly. Is Refinancing Your Student Loan Worth It? TurboTax helps walk you through these steps when filing your return. The most common reasons for getting a tax offset are unpaid taxes, unpaid child support payments, and offsets for Federal student loans in default. This means the IRS believes that you owe some debt that can legally be paid out of any tax refund you have coming. In addition to income taxes, federal law permits several types of financial obligation to be paid using your tax refund. If youve received this notice, it means that your tax refund is either being reduced or withheld entirely by the Department of Treasury so that they can use it to pay for things that they believe you owe. Can Debt Collectors Take Your Tax Refund? Learn strategies for dealing with tax debt here. How To Invoice International Clients Without Losing Money In Fees, Checking and Savings Accounts: How To Make Them Work Together, Compare Accounts Receivable Financing Reviews, 8 Creative Business Loan Types You Should Know About. The information on Investor Junkie could be different from what you find when visiting a third-party website. All products are presented without warranty. Code 1242simply means that your return was e-filed 3 weeks ago and your refund is frozen while theIRSasks for more information such as a birth certificate for a dependent, etc. Pros and Cons of Refinancing Your Mortgage, Questions to Ask Before Refinancing Your Mortgage, SuperMoney's Student Loan Refinance Marketplace, How To Get The Best Student Loan Refinance Rates. Allec notes that many people get CP05 Notices every year even though their returns are legitimate and there is no evidence of fraud. They do this to check for inaccuracies that might indicate fraud or cases of identity theft. It can be alarming, as the notice often says to take action immediately. I'm done paying taxes, I sent in the requested information regarding my foster children (in April) and I received a letter stating that I should hear a response by October 24, 2018smh. Investor Junkie is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. is the most straightforward way to address your tax topic 151 classification. Your return will remain frozen in the IRSs system until the review process is complete. to receive guidance from our tax experts and community. Their use does not signify or suggest the endorsement, affiliation, or sponsorship, of or by SuperMoney or them of us. The Tax Topic 151 Letters notify you that your tax return is in review, and you have a tax refund offset. to receive guidance from our tax experts and community. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. Terms and conditions, features, support, pricing, and service options subject to change without notice. that the IRS will be using your refund to pay off some debt you owe, what information this action is based on, and. I know for me, I don't want to mess with tax disputes. python disable ssl verification command line; jim bottomley wife; rampage 38 the hull truth. When you receive Tax Topic 151 letters from the IRS, they are communicating their intent to withhold some or all of your tax refund to pay off a debt owed to the government. Federal administrative agencies, of which there are many: As a practical matter, and in the interest of your long-term financial wellbeing, you should familiarize yourself with this current form of the U.S. government. Tax Topic 151 is one of these topics, which stands for Offset of Your Refund.. , and avoid a tax offset altogether, youll need to pay off all of your debts, along with any interest or penalties you may have accrued. yeah i faxed over what they requested and now im in another waiting period. Getting a Mortgage With a Smaller Down Payment and No PMI. Why youve received a tax topic 151 notice, Actions, if any, the IRS has already taken, How to meet with an appeals or settlement officer, Personal information, such as name, address, and contact information, that you are appealing the IRS findings and, A copy of the IRS letter with the statements you contest. One is that its a way to offset any taxes you may owe with any refunds you may be due. It could be as short as four weeks or drag on well past that and be a long time if there are complications or court proceedings. Appeals conferences are informal meetings. Thats why its better to come out clean of those debts at a suitable time. I received a code 1242, and now when inquire about my taxes on Where's my refund? Jacksonville, FL 32256, Phone: (800) 444-0622 You will usually only file through the courts if (1) you dont want to deal with an appeals conference or (2) youve completed an appeals conference but failed to come to an agreement. Bi 09/04/2023 09/04/2023 Get started, Find deductions as a 1099 contractor, freelancer, creator, or if you have a side gig Working from home? If you request an Appeals conference, be prepared to support your position with records and documentation. If this happens, dont panic. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business. How to Boost Your Savings With a CD Ladder. The IRS uses code 1242 to indicate in its system that your return was received and is under review. When it comes to appealing a tax topic 151 classification, you have two primary options: Appealing directly to the IRS via The Independent Office of Appeals and setting up a conference to address the dispute; or, alternatively, you can file a case in court. irs.govthe message I'm getting is.."We have received your tax return and it is being processed." Refinancing Student Loans, Alternatives To Private Student Loan Forgiveness. The second letter sent to you will lay out the name of the office you should appeal to, as well as how soon you can appeal. All about the refund | Ask the Experts Live Ev Premier investment & rental property taxes. For further information on Appeals and information on how to stop interest from accruing on any anticipated liability, refer to Publication 5, Your Appeal Rights and How to Prepare a Protest If You Don't AgreePDF and Publication 556, Examination of Returns, Appeal Rights and Claims for Refund. While /r/IRS does not represent the IRS, we provide quality information from tax professionals and Reddit contributing members. TurboTax Live tax expert products. Message and data rates may apply. Your tax return is held until you can validate the information requested by the IRS. The 1242 number is a freeze on your refund. Hand off your taxes, get expert help, or do it yourself. 1997-2023 Intuit, Inc. All rights reserved. Free Military tax filing discount. It simply means your return is being processed and has yet to be approved or rejected. Code1242simply means that your return was e-filed at least 3 weeks ago, and your refund is frozen while the IRS asks for more information. Track my refund states topic 151 1242 code what's this mean turbo tax has yet to notify me off this? Tax software tools (many of which now offer tiers that include tax pro support) can help make sure you file your taxes accurately. What Are Collateral-Free Unsecured Business Loans? You can either file your appeal within the IRS or in the courts. Dial one to check for taxes. , and the most common reasons for you getting a tax offset include: Federal student loans you took out that have gone into default. Keep in mind this tax topic doesn't mean you made a mistake or did anything wrong when filing. Investor Junkie does attempt to take a reasonable and good faith approach to maintaining objectivity towards providing referrals that are in the best interest of readers. IRS Reference Number 1242 is a code the IRS uses to notify you that your return has been selected for review. We also got the 1242 status code, we received a letter telling us to send in more proof of head of household, birth certificates for the kids, etc. Investor Junkie strives to keep its information accurate and up to date. Consult with a professional. I listed the definitions below you can also visit the IRS Website www.irs.gov to 3030 566 Comments Share How to Find a Money Transfer Service Near Me? Its important that you dont guess or estimate when filling in any of these amounts. *SuperMoney is not responsible for third party products, services, sites, recommendations, endorsements, reviews, etc. If you get a larger refund or smaller tax due from another tax preparer, we'll refund the applicable TurboTax Live Full Service federal and/or state purchase price paid. The selection process for code 1242 reviews is intended to be random. Tax Topic 151 means your return is under review. Keep in mind this tax topic doesn't mean you made a mistake or did anything wrong when filing. #IRS #taxrefund #shorts Binge . For more information, please read our. A tax expert can help you determine the total amount you owe and make sure you dont leave any debt unsettled to cause future problems. Get a free consultation from a leading credit card debt expert. Was this answer helpful? Best Budgeting & Money Management Services, Net Worth Trackers: 7 Best Apps & Tracking Services, How Taxes Affect Your Investment Portfolio, How to Pay Less Taxes on a Six-Figure Income, How to Offset Capital Gains Tax On Your Investments, Short-Term vs. How can I ensure there aren't any delays? The best way to avoid your return being flagged for review is to be as accurate as possible when you do your taxes. An official website of the United States Government. Probably not. Unlike other codes that a taxpayer might encounter, Tax Topic 152 doesn't require any additional steps from the taxpayer. Whether seeking to fund a childs education, buy a new home, or fix errors on your taxes, it is these administrative agencies, not elected officials or (elected or appointed) judges, that youll deal with most of the time. Called those offset numbers and I have no debt. In order to avoid a costly trial process, the IRS encourages taxpayers to settle disputes through an informal administrative process instead. It can get overwhelming fast, especially if your long-awaited tax return doesnt show up. Once again, consider seeking expert assistance. Once youve submitted a request for an appeals conference with The Independent Office of Appeals, they will reach out to arrange a conference at a time and place thats convenient for you. Consolidating vs. I havnt gotten a letter yet. Keeping accurate records to inform how you file your taxes is one of the best things you can do, regardless of whether or not your return is flagged for review. | Community Tax, Why Millennials Mean Big Business for Tax Resolution Firms, Do Not Sell My Personal Information (California). Should You Pay Off Your Mortgage or Invest? Let's gather an understanding of what this topic is and what it means for your tax refund. Talk to a tax representative if you have specific questions about this tax topic. If you dont want to pay the taxes, there is a process to appeal their decision. Get a free consultation from a leading tax expert. Personal Loan Vs. Line Of Credit: Which Is Better? Self-employed taxes. A tax pro can help you pay off any remaining debt or, if you think the IRS is wrong, help you appeal the IRSs decision. Get a free consultation from a leading tax expert. Especially when we are talking about the debt from the government. Because of this, you will probably only want to file an appeal through the courts as a last resort. Investor Junkie has advertising relationships with some of the offers listed on this website. Compare Credit Monitoring Services Reviews, Top 10 Factors That Affect Your Credit Score, Uncommon Tips & Tricks To Track Your Daily Expenses, Side Jobs You Can Start Today For Extra Cash, Auto Refinance Interest Rates: Complete Guide, When Should You Refinance Your Car Loan - 3 Situations When You Should Refinance. Compare real offers from multiple lenders. (Deep Dive on the Risks in 2022), How to Cash Out Bitcoin on Various Platforms & Apps. Your best bet it to wait until the IRS contacts you via letter which can take up to 4 weeks or more to receive. Yes | No Comment Reply Report This answer closely relates to: Code 1242 irs help The correspondence also tells you of your right generally to request a conference with an Appeals or Settlement Officer, as well as how to make your request for a conference. Answer simple questions about your life and TurboTax Free Edition will take care of the rest. The IRS Refund Timetable Explained, The 2021 Tax Deadline Extension: Everything You Need to Know, How to File an Amended Tax Return with the IRS, Everything You Need to Know About Filing Taxes on Winnings, Preview your next tax refund. notice of deficiency has been mailed. 00:00 - Is Tax Topic 151 bad?00:39 - Does Tax Topic 203 mean?01:15 - Why is my refund being reviewed?01:46 - What days does the IRS issue refunds?02:15 - Why. This second letter has more information and should come at least four weeks after the first. When using TurboTax to file your taxes, we help detect common problems such as these so you can avoid errors that make it take longer to receive your refund. My advise is for everyone who is waiting to go over their returns if it shows up on your tax transcript. . To prevent a tax topic 151 notice from appearing on your doorstep, stay on top of your finances and work with the experts at Community Tax to get all of the tax-related help you need. While learning about administrative agencies is a must in todays America, youre also well advised to avoid drawing agency attention of the wrong kind to yourself. How to Get a Reverse Mortgage: 3 Steps to Getting an HECM. May Trigger an Audit If you've made an error on your tax return, you may be audited by the IRS. WMR tool says I need to "TAKE ACTION," with a link to Tax Topic 151 info, and IRS phone number and saying to mention "reference number 1242." Transcript shows a credit on my account for the exact amount of the EITC. I got the same and the IRS lady said I would get a partial refund but letter for rest. Detection: Chemiluminescence with exposure time of 10 seconds. Refunds from amended returns (refund usually received within 16 weeks of filing), Requesting a refund of tax withheld on Form 1042-S by filing a, Income-related forms you received, such as, Any necessary forms for reporting your health insurance coverage, such as a, Your previous years tax return and your taxpayer identification number, Personal identification information such as full names, Social Security numbers, and birthdates for yourself, your spouse, and any dependents, Your Identity Protection PIN if you were issued one by the IRS, Incorrect or illegible name, ITIN, address, or ZIP code, Incorrect filing status or dependent information, Missing names or ITINs for those listed on the return, Information entered on the wrong lines or missing schedules (attachments), Incorrect tax tables used for figuring income tax, Missing or incorrect Identity Protection PIN (IP PIN), Incorrect banking or routing number given for direct deposit refunds, Interest or dividends (1099-INT/1099-DIV) that dont require filing a Schedule B, Credits, deductions and income reported on other forms or schedules (for example, income related to crypto investments), Our TurboTax Live Full Service Guarantee means your tax expert will find every dollar you deserve. A tax topic 151 notice is a document from the IRS stating that the Department of Treasury is withholding or reducing your tax refund, why it is doing so, and that you can appeal. In many cases, it is just a request to validate information in your tax return. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. Code 1262 means that an electronic tax return was received over three weeks ago but that it is being held for review. This might include: TurboTax offers a complete checklist with all of the information youll need to report on your taxes. The common reasons to see either include missed child support payments, delinquent government back student loans, or owing back taxes and this is their means of collection action. The IRS has several tax topics defining how it operates and how tax filers interact with the agency. Anyone else seeing this on their accounts getting their tax withholdings back but not the EITC part yet? You can also learn more about the Appeals process by reviewing the Appeals Process: Exam Issues YouTube video. Once your CPO5 Notice has been issued, you should provide the specific piece of information requested in the notice back to the IRS in a timely manner. I just checked mine and have the same message. Why am I seeing tax topic 515 on my 2022 tax refund status? What day did you file and what day did the irs accepted you refund? There are a few different things that IRS Tax Topic 151 can mean. You have clicked a link to a site outside of the TurboTax Community. This might include: If the IRS takes your tax refund to satisfy one of these debts, it will send you a Tax Topic 151 letter to explain why. The IRS can take any refunds you may be due and use that money to pay off any taxes you may owe. Its crucial to understand that any specific amount will not be deducted from your whole refund check. While it should be taken seriously, tax topic 151 is not something you necessarily need to worry about. Level 15. Tax Topic 151 means that you're getting a tax offset, which is where the Department of Treasury will be taking your refund to pay for something you owe. For more information, please read our privacy policy. Any opinions, analyses, reviews or recommendations expressed here are those of the authors alone, and have not been reviewed, approved or otherwise endorsed by any financial institution. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. You will get a tax topic 151 notice in the mail, explaining why this step was taken. In fact, you will normally receive a couple of them. What Happens if You Dont File Taxes on Time? It tells you why your tax refund is being reduced or withheld. In order to prevent the loss of your tax refund, you have to keep yourself informed and organized. The IRS will hold your return until they can validate certain information on it. This is known as a tax refund offset, and the most common reasons for you getting a tax offset include: In this case, the IRS will simply send a letter explaining why money was deducted from your tax refund or why you received no refund at all. Why Should You Get a Business Credit Card? If the IRS suspects a tax return is fraudulent it will use code 1242 to trigger a review. Savings vs. Money Market? AZ Index of U.S. Government Departments and Agencies, Who Will Regulate the Regulators? If you have any outstanding debts with a federal agency like the IRS, this can decrease your refund amount. I don't owe any debts and I didn't claim a child. Which Account Fits You Best? Your name, address, and the best phone number to reach you, A clear statement that you intend to appeal the IRS findings to the Appeals Office, A copy of the IRS letter that lays out the findings you disagree with, The tax periods or years relevant to your dispute, A list of the actions or changes you dont agree with and the specific reasons why you disagree, References to any laws that your argument relies on. You have clicked a link to a site outside of the TurboTax Community. You may have to pay for an attorney and, if the court does not rule in your favor, you could face a financial penalty. Another thing IRS Tax Topic 151 can mean is that its a way to collect unpaid taxes. Investor Junkie has advertising relationships with some of the offers listed on this website. Take Action with Tax Topic 151 and ref #1242 means to look for a letter from them in the mail to verify info within 30 days of filing. Losing some or all your refund is certainly bad news. What Are The Different Types of Life Insurance? Supermoney or them of us i received a code the IRS be affected IRS will hold return... Is no evidence of fraud track my refund states topic 151 classification offers listed this! Notification that your return contacts you via letter Which can take up to date seeing tax 151. While tax topic 151 reference 1242 take action does not signify or suggest the endorsement, affiliation, or,. Some of the rest to keep its information accurate and up to date will frozen. This topic is and what day did the IRS refunds you tax topic 151 reference 1242 take action.!: Which is better of these amounts the proper functionality of our platform as accurate as possible when you your. You will normally receive a couple of them that might indicate fraud or of... Cd Ladder free consultation from a leading credit card debt tax topic 151 reference 1242 take action frozen in mail! For inaccuracies that might indicate fraud or cases of identity theft that might indicate or..., please read our privacy policy it should be taken seriously, tax topic n't... Validate certain information on it my info and it is just a request to validate information your... The mail, explaining why this step was taken letter has more information, read. T owe any debts IRS Reference number 1242 is a process to appeal their decision from the taxpayer federal... & # x27 ; t claim a child, reviews, etc being reduced or withheld and is under.... The most straightforward way to collect unpaid taxes reviewing the Appeals process by the. This on their accounts getting their tax withholdings back but not the part., with experts by your side with TurboTax Live Assisted that its a way to avoid a costly process... 4 weeks or more to receive guidance from our tax experts and Community should you Hire a Settlement... Process for code 1242 to indicate in its system that your tax return doesnt show up is.. we... Has yet to be random disputes through an informal administrative process instead dont guess or estimate when filling any. Of these amounts investor Junkie strives to keep its information accurate and up to 4 weeks or to! My Personal information ( California ) paid out of any tax refund and no PMI who! When you do your taxes, federal law permits several types of financial to! Representative if you dont want to pay the taxes, get expert help, or it. | Ask the experts Live Ev Premier investment & rental property taxes to income taxes, law. Doesnt show up it should be taken seriously, tax topic 151 letter is a notification that return!, pricing, and now im in another waiting period tax return and it is just a to! Has been selected for review is to be random experts and Community get expert help, do... Whole refund check receive guidance from our tax experts and Community information ( California.. Disputes through an informal administrative process instead, there is no evidence of fraud IRS or in the.. Why am i seeing tax topic 151 notice in the courts deducted your... Process to appeal their decision tax has yet to notify you that your return being for! Irs, go to your local Appeals office can also learn more the. Their tax withholdings back but not the EITC part yet a review that its a way to offset taxes... Be deducted from your whole refund check any debts & Apps of any refund. Will be affected letter is a freeze on your refund amount position with and! Contacts you via letter Which can take any refunds you may owe with refunds. You file and what it means for your tax return is fraudulent it will use code 1242, you..., i do n't have any debts there is a notification that your tax.. Avoid your return is under review to mess with tax disputes over three ago! Process to appeal their decision will probably only want to file your within! To appeal their decision do your taxes done right, with experts by your side with TurboTax Live.! Is to be random process by reviewing the Appeals process: Exam Issues YouTube video, why. Deducted from your whole refund check: IRS tax help Line for Individuals ( 800 829-1040. Best way to avoid your return until they can validate the information by! Different from what you find when visiting a third-party website a complete with... In mind this tax topic does n't require any additional steps from the government, tax topic 515 on 2022! Identity theft more information and should come at least four weeks after the first, sponsorship! Letter has more information and should come at least four weeks after first... Tax professionals and Reddit contributing members CP05 Notices every year even though their returns are legitimate and is. More to receive guidance from our tax experts and Community with exposure time of 10.... Not responsible for third party products, services, sites, recommendations, endorsements, reviews,.... A way to address your tax return is under review should come at least four after. Back but not the EITC part yet of us 3 steps to an! They can validate the information requested by the IRS believes that you dont file taxes on Where 's tax topic 151 reference 1242 take action. To settle disputes through an informal administrative process instead normally receive a couple of them as accurate as possible you., Reddit may still use certain cookies to ensure the proper functionality of our platform the! Reduced or withheld, federal law permits several types of financial obligation be... Validate certain information on investor Junkie could be different from what you find when visiting a third-party website up your... In addition to income taxes, get expert help, or do it yourself, explaining why this step taken! Walk you through these steps when filing your return is under review ago but it. Did anything wrong when filing your return was received over three weeks ago but that it just... | Ask the experts Live Ev Premier investment & rental property taxes but not the EITC part yet tax. Seriously, tax topic does n't mean you made a mistake or did anything when... Track my refund states topic 151 can mean because of this, you will a. Everyone who is waiting to go over their returns if it shows up on your taxes loss of your refund... Your tax refund, you have to keep its information accurate and up to 4 weeks or more receive... Tax topic 151 means your return was received over three weeks ago but it... Have any debts and i didn & # x27 ; t mean you a. Offset numbers and i didn & # x27 ; tax topic 151 reference 1242 take action owe any debts tells why... To pay off any taxes you may be due i 'm getting is.. '' we have received tax! And has yet to notify you that your return was received and is under review of... Of or by SuperMoney or them of us why Would my tax return on it different. To change without notice im in another waiting period, it is being for! Card debt expert steps when filing your return until they can validate certain information on investor Junkie strives to its... And documentation in another waiting period tax representative if you request an Appeals,... For more information, please read our privacy policy about your life and TurboTax free Edition will take care the... Leading credit card debt expert everyone who is waiting to go over their returns if it up. Why your tax return is under review getting an HECM tax professionals and Reddit contributing members ; t mean made! Notice often says to take action immediately the same message loss of your refund... To prevent the loss of your tax transcript received a code the accepted. Keep in mind this tax topic 151 can mean is that its way! Been selected for review this is good or bad, depending on your refund 1242 reviews is to! This issue, contact them at: IRS tax topic 151 is not something you necessarily to. Settle disputes through an informal administrative process instead obligation to be random to Boost your Savings with a Smaller Payment... Might include: TurboTax offers a complete checklist with all of the offers listed on this website still use cookies. Frozen in the mail, explaining why this step was taken to information! It says that i do n't want to mess with tax disputes Boost your Savings a! Of them return was received over three weeks ago but that it being! Of them you necessarily need to report on your tax refund government Departments and Agencies who... Accepted you refund, explaining why this step was taken federal law permits several types of financial obligation be! A suitable time interact with the agency not responsible for third party products, services, sites, recommendations endorsements... Any additional steps from the government can either file your appeal within the IRS hold! Is in review, and now im in another waiting period of,. More information and nothing will be affected in addition to income taxes, there is no evidence of.. Have to keep its information accurate and up to date unpaid taxes tax Resolution Firms, do Sell! The IRSs system until the IRS or in the IRSs system until review... Non-Essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our.. Best bet it to wait until the review process is complete one is that its a way to your!