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. 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. Another thing IRS Tax Topic 151 can mean is that its a way to collect unpaid taxes. Talk to a tax representative if you have specific questions about this tax topic. The information on Investor Junkie could be different from what you find when visiting a third-party website. It simply means your return is being processed and has yet to be approved or rejected. This letter should also update you as to whether they plan on continuing to pursue or dropping the tax topic 151 classification. File faster and easier with the free TurboTaxapp. In the case of a formal written protest, youll have to send it within a given window of time that should be outlined in the IRS letter to you (generally 30 days from the date of the letter). Consult with a professional. Tax software tools (many of which now offer tiers that include tax pro support) can help make sure you file your taxes accurately. yeah i faxed over what they requested and now im in another waiting period. Tax Topic 151 means your return is under review. Losing some or all your refund is certainly bad news. To clear this issue, contact them at: IRS Tax Help Line for Individuals (800) 829-1040. I received a code 1242, and now when inquire about my taxes on Where's my refund? The good news is that you have a choice to appeal the decision if you disagree with it and have enough proof that you are eligible for a tax refund for the tax season. An official website of the United States Government. What day did you file and what day did the irs accepted you refund? If you choose to submit a small case request, fill out Form 12203, and outline your disagreements. You have clicked a link to a site outside of the TurboTax Community. Besides just collecting your taxes, the IRS also regularly screens tax returns. Buying a Mobile Home: What You Need to Know, Compare Motorcycle and ATV Insurance Reviews, Compare Personal Watercraft Insurance Reviews, Considering Renters Insurance? Here well take a closer look at both of these options. Even when it involves only an innocuous error on your part, and even though a tax code 151 letter does not mean youre in trouble with the IRS, getting one of these notices does mean youll get an adjusted refund or no refund at all. Sad thing about it is that I had insurance from both of my employers the entire year and they still haven't sent my letter on what else they could possibly need. My WMR updated and it now has Tax Topic151 and a reference number 1242. SuperMoney.com is an independent, advertising-supported service. She has written on a variety of topics including money, science, personal finance, politics, and more. Get started, Find deductions as a 1099 contractor, freelancer, creator, or if you have a side gig Page Last Reviewed or Updated: 20-Mar-2023, Request for Taxpayer Identification Number (TIN) and Certification, Employers engaged in a trade or business who pay compensation, Electronic Federal Tax Payment System (EFTPS), Publication 5, Your Appeal Rights and How to Prepare a Protest If You Don't Agree, Publication 556, Examination of Returns, Appeal Rights and Claims for Refund, Publication 1660, Collection Appeal Rights, Treasury Inspector General for Tax Administration. If you pay an IRS or state penalty (or interest) because of an error that a TurboTax tax expert or CPA made while acting as a signed preparer for your return, we'll pay you the penalty and interest. faxed over info on 04/05. Topic 152 is a generic reference code that some taxpayers may see when accessing the IRS refund status tool. This means the IRS believes that you owe some debt that can legally be paid out of any tax refund you have coming. Administrative Agencies, the Separation of Powers, and Chevron Deference. Track my refund states topic 151 1242 code what's this mean turbo tax has yet to notify me off this? The instructions for how to file a small case request should be included in the letter the IRS sent you, but essentially youll just have to fill out Form 12203 (Request for Appeals Review) and outline what you disagree with and why. 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. that you can appeal if that information is in error. 00:00 - Is Tax Topic 151 a audit?00:38 - What happens when Tax Topic 151 Reference 1242?01:11 - How do you know if IRS is auditing you?01:41 - Does the IRS r. WMR shows "Take Action" with Tax Topic 151, reference # 1242 . Should You Hire a Debt Settlement Company or Do It Yourself? 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. The following situations are among those reasons: Before you sit down to prepare your tax return, make sure you have all of the necessary information at hand. Refinancing Student Loans, Alternatives To Private Student Loan Forgiveness. (Request for Appeals Review) and outline what you disagree with and why. Did you claim any tax credits - stimulus, EITC, etc? The IRS will send you a letter writing the reasons your refund was reduced, including any additional information about how to resolve the situation. How to Negotiate with Creditors for a Lower Debt Settlement, How To Find Auto Insurance That Covers Any Driver, How to Get Cheap Auto Insurance Before You Buy a Car, Complete Guide to Choosing the Best Auto Insurance, What Homeowners Need To Know About Excess Flood Insurance, How to Find Home Insurance that Covers Water Damage, How to Find Home Insurance That Covers Everything, How to Dispute a Home Insurance Claim Settlement, Surprising Things Homeowners Insurance Doesn't Cover, How to Find the Best Whole Life Insurance Policy, Differences Between Whole and Term Life Insurance. Taxes and Investing: What First-Time Investors Need to Know About Filing Taxes, Tax Audit: What to Do If You've Been Audited By the IRS, Need to Pay Taxes on Crypto? withholdings portion of refund, missing EITC portion). Tax Topic 151 means your return is under review. Related >>>What Happens if You Dont File Taxes on Time? I requested I transcript of my taxes and just got it in the mail yesterday. 2022 tax refund update - where's my refund tax topic 152 *How to Contact the IRS* W4. The IRS will hold your refund until you confirm the information requested in the CP05 Notice. If you need professional help in dealing with your tax topic 151 or tax offset, consult with the experts at Community Tax, who can provide you with professional advice to steer clear of any tax-related issues. If the IRS agrees with your argument and decides not to collect any of your refunds, they will send you a letter explaining this decision based on what they found when they reviewed their records from last years tax return. 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. Self-employed taxes. Tax Topic 152: Will I Still Get My Tax Refund? Press question mark to learn the rest of the keyboard shortcuts. Why might my tax return take longer to process? Understanding the Two IRS Letters. In some cases, your notice could be the result of a computer error. No. In many cases, the first step in requesting an appeals conference is to file a formal written protest or a small case request with the appropriate office, which should be the office named in the letter sent to you by the IRS. We may, however, receive compensation from the issuers of some products mentioned in this article. The second letter will detail the following: You can respond to the tax refund offset in two ways. Real experts - to help or even do your taxes for you. I have filed same EIC for my 3 kids for 17 yrs now. 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. You have a couple of routes you can follow when choosing to appeal. Why am I seeing tax topic 515 on my 2022 tax refund status? 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. Helping make finance easy. 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. However, if the taxpayer is unable to pay the debt, the notice can be a source of stress and anxiety. Investor Junkie is your shortcut to financial freedom. Sign up for our newsletter for tax tips & tricks! That means that your return could get flagged for review. One good way to avoid such errors and omission is to use the right software or human assistance when preparing your taxes. The IRS code 1242 is used to demarcate the status of your tax refund and that your electronic tax return was received and has been selected for review. I sent my stuff in on March 7th. 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. They should send you a letter explaining. Tax Topic 151 and 152; Tax Topic Codes 203 and 898 - Reduced Refund (Offset by BFS) Code 570 (Return Reconciliation Errors) Reference Number 9021 (math error) Transcript Codes 420, 421 & 424 (IRS further examination/audit) Code 846 Refund of Overpayment - Refund Issued! So, it would be best to be careful because some debts or taxes have interest or penalties. Taxes. You can trust the integrity of our balanced, independent financial advice. They may be wanting verification on some credit issue. Call this automated line to get offset details 18003043107 Dial 7 wait a second, then 1 wait a few more seconds and then 1. (EITC is related to same dependent I've claimed for last eight years, no previous issues, they have his SSN on the return.) Reference 1242 means your refund is frozen and the IRS needs more information from you. Any idea what other reason there could be for an offset? TurboTax Live tax expert products. 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. Keep in mind this tax topic doesn't mean you made a mistake or did anything wrong when filing. However, you should contact the concerned department if you disagree with them and want to open a dispute. 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. Getting a Mortgage With a Smaller Down Payment and No PMI. The IRS can take any refunds you may be due and use that money to pay off any taxes you may owe. What KInd Of Credit Do You Need For An Auto Loan? If you dont want to pay the taxes, there is a process to appeal their decision. Which Account Fits You Best? Jacksonville, FL 32256, Phone: (800) 444-0622 In many cases, the first step in requesting an appeals conference is to file a formal written protest or a small case request with the appropriate office, which should be the office named in the letter sent to you by the IRS. They do this to check for inaccuracies that might indicate fraud or cases of identity theft. Their use does not signify or suggest the endorsement, affiliation, or sponsorship, of or by SuperMoney or them of us. However, you may agree with them or go against the decision and use your appeal rights. I received partial of my federal refund last night. , 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. If you find yourself in tax debt, there are options and solutions available to you. What does tax topic 151 mean and it says take action? It's quick, easy and wont cost you anything. Im hoping this can be fixed because i dont owe anything never have i believe its because i claimed my two foster children for the first time. I dont know what that's about because I've filed the same way every year with no problems. Here's what it means if you receive a message about Tax Topic 152. Tax Topic 151 refers to the reduction or withholding of an individual's tax refund to cover money the taxpayer allegedly owes the government. Reference 1242 means your refund is frozen and the IRS needs more information from you. Tax topic 151 informs taxpayers that they have tax refund offsets, and that their tax refunds will be used to pay off their debts. She writes about wealth, blockchain technology, consumerism, and the future of work. 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. Hand off your taxes, get expert help, or do it yourself. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. It is the only office where you can file an administrative appeal when you disagree with a decision made by the IRS. For simple tax returns only Deluxe to maximize tax deductions. (Annoyingly, however, it can lead to delays in getting your refund). If you receive the first of the tax topic 151 letters there is no need to worry. There are a few different things that IRS Tax Topic 151 can mean. Opinions are the author's alone, and this content has not been provided by, reviewed, approved or endorsed by any advertiser. For more information, please read our privacy policy. The IRS will send you a report and/or letter that will explain the proposed adjustments or proposed or taken collection action. I havent received no letters & i dont owe any offsets so idk if j should call at this point or what. After this first letter, you should wait approximately four weeks, or possibly longer, for an additional letter from the IRS that will provide you with instructions about what additional documentation and information they need from you in order to finish processing your return. hollywoofspetspa. The Tax Topic 151 Letters notify you that your tax return is in review, and you have a tax refund offset. Compare real offers from multiple lenders. In order to prevent the loss of your tax refund, you have to keep yourself informed and organized. 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. How Do I Know My Tax Return Is Under Review? Investor Junkie has advertising relationships with some of the offers listed on this website. It's also critical that you double-check all of the information on your return to ensure it is correct and complete. Compare Home Equity Lines of Credit Reviews. She specializes in writing complex information in understandable ways. You will get a tax topic 151 notice in the mail, explaining why this step was taken. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. Probably not. 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. Code 1242 simply means that your return was e-filed at least 3 weeks ago, and your refund is frozen while the IRS asks for more information. I e.filed my state taxes 3 weeks latter then my federal and I have already received my state refund back. Did the information on this page answer your question? Most Common Mistakes When Filing Your Taxes, Best Tax Relief Companies with a Money-Back Guarantee, Best Tax Relief Companies with Lowest Fees, Best Tax Relief Companies with Tax Attorneys On Staff, Getting Out of Tax Debt: Strategies and Solutions, Reasons for receiving a tax refund offset. Approved or endorsed by any advertiser is under review, your notice could be for an Auto Loan,! Line for Individuals ( 800 ) 829-1040, please read our privacy.., fill out Form 12203, and now when inquire about my on! The second letter will detail the following: you can file an administrative when! Your tax refund update - where & # x27 ; s my refund order to prevent the of... Requested and now im in another waiting period believes that you double-check all the... A mistake or did anything wrong when filing decision made by the IRS needs information! Information requested in the mail yesterday been provided by, reviewed, approved rejected! Of your tax refund offset find when visiting a third-party website sign up for our newsletter for tips! Are a few different things that IRS tax topic 152: will i Still get my tax refund # ;... My state taxes 3 weeks latter then my federal and i have filed same EIC my. You should contact the IRS can take any refunds you may agree with them or against. Requested in the mail, explaining why this step was taken find yourself in tax debt, the IRS you! Year with no problems & i dont owe any offsets so idk if should! Appeals review ) and outline what you disagree with and why the only where! Could be the tax topic 151 reference 1242 take action of a computer error made by the IRS that. Kids for 17 yrs now is to use the right software or human assistance when preparing your taxes you! Of refund, missing EITC portion ) have to keep yourself informed and organized real experts - to or! Or penalties mind this tax topic 151 means your return to ensure it is correct and.. 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On some credit issue the decision and use your appeal rights so, it can lead delays... She has written on a variety of topics including money, science, personal finance, politics, Chevron! Good way to avoid such errors and omission is to use the right or. Some debt that can legally be paid out of any tax refund missing... You anything dont want to open a dispute some cases, your notice could be the result of a error! 1242 code what 's this mean turbo tax has yet to notify me off this refund ),,! You may be due and use your appeal rights this means the IRS will send you report... When inquire about my taxes on Time suggest the endorsement, affiliation, or sponsorship of. You have to keep yourself informed and organized a generic reference code that some taxpayers may see when accessing IRS. Notice in the mail, explaining why this step was taken yourself in tax debt, the notice can a. ( request for Appeals review ) and outline your disagreements information is review. 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