It's simply the IRSs process for determining if income, expenses, and credits are accurately reported. I have zero debts, judgments, liens, or anything like that whatsoever. This will consist of the IRS conducting a thorough investigation of all elements of your tax return. There are a few different things that IRS Tax Topic 151 can mean. 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. You can also learn more about the Appeals process by reviewing the Appeals Process: Exam Issues YouTube video. Maybe youre frequently walking out to check your mailbox, or youre visiting the IRS website on a daily basis to check on the status of your tax refund. Investor Junkie is your shortcut to financial freedom. This can be done for various credit claims such as the earned income credit or any of the education credits. File your own taxes with confidence using TurboTax. I e.filed my state taxes 3 weeks latter then my federal and I have already received my state refund back. The first Tax Topic 151 letter you will receive is simply a courtesy notification. How Much Should I Offer In Compromise to the IRS? Whether you take this as good news or bad news, the truth is that the old three branches idea hasnt accurately described how the U.S. government works for a long time. Where's my refund take action 151? Tax Topic 151 refers to the reduction or withholding of an individual's tax refund to cover money the taxpayer allegedly owes the government. Press question mark to learn the rest of the keyboard shortcuts. In the case of the IRS, the good news is you are entitled to an administrative appeal of most of this agencys decisions, including the offsetting of a tax refund. Tax topic 151 means you have a tax refund offset. Let's gather an understanding of what this topic is and what it means for your tax refund. Only whats owed is subtracted from whatever balance remains after processing fees have been deducted and other expenses have been paid. One is that its a way to offset any taxes you may owe with any refunds you may be due. In other cases, it may still be a good idea. In some cases, your notice could be the result of a computer error. Yes | No Comment Reply Report This answer closely relates to: Code 1242 irs help In her free time, she enjoys hiking, reading, and spending way too much time in local coffee shops. Reference 1242 means your refund is frozen and the IRS needs more information from you. 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. 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. The IRS is letting you know that it is reviewing your tax return and that your refund might be affected due to outstanding debts that you owe. 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. *SuperMoney is not responsible for third party products, services, sites, recommendations, endorsements, reviews, etc. Home Equity Loan vs. Line of Credit: Which Should You Choose? Here's what it means if you receive a message about Tax Topic 152. After filing your taxes you, like many others, may be eagerly awaiting your tax refund. After you file. Once again, consider seeking expert assistance. Visit Appeals to find information about alternative dispute resolution processes, technical guidance, international programs, and more. 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. For more information, please read our privacy policy. This can be done for various credit claims such as Earned Income Credit or any of the education tax breaks (this is not all inclusive). All products are presented without warranty. Code 1262 means that an electronic tax return was received over three weeks ago but that it is being held for review. I sent my stuff in on March 7th. Get a free consultation from a leading tax expert. How long did you have to wait after you sent everything in? Enforce the rules, like the executive branch. Being flagged by the IRS doesnt even necessarily mean that youve filed your taxes wrong. You can also use e-file and direct deposit to ensure that you'll receive your refund as quickly as possible. So, instead of getting that direct deposit or tax refund check, youre receiving notice of a tax refund offset. 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). Your return will remain frozen in the IRSs system until the review process is complete. I prepared my taxes through FreeTaxUSA, one of IRS's free tax file partners. Topic 152 is a generic reference code that some taxpayers may see when accessing the IRS refund status tool. What Are Collateral-Free Unsecured Business Loans? I have the same code but with no reference number. New Member. if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[250,250],'pineapplemoney_com-box-4','ezslot_4',109,'0','0'])};__ez_fad_position('div-gpt-ad-pineapplemoney_com-box-4-0');IRS Topic 151, which stands for Offset of Your Refund, refers to the offset or reduction of your federal tax refund based on the money you owe to a federal agency. The Tax Topic 151 Letters notify you that your tax return is in review, and you have a tax refund offset. An example is the kind of attention you get from the IRS due to errors and omissions on your tax return. Code 1242 simply means that your return was e-filed 3 weeks ago and your refund is frozen while the IRS asks for more information such as a birth certificate for a dependent, etc. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Written by a TurboTax Expert Reviewed by a TurboTax CPA, Updated for Tax Year 2022 February 4, 2023 11:19 AM. If you don't reach an agreement with the Appeals or Settlement Officer or you don't wish to appeal within the IRS, you may appeal certain actions through the courts. It will also outline what steps you can take in response, such as filing an appeal. Youll have to file a case with the Tax Court within 90 days after the notice of deficiency has been mailed. 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. to receive guidance from our tax experts and community. Did the information on this page answer your question? The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. All features, services, support, prices, offers, terms and conditions are subject to change without notice. I listed the definitions below you can also visit the IRS Website www.irs.gov to 3030 566 Comments Share Do Private Student Loans Have a Statute of Limitations? Camilla has a background in journalism and business communications. After this listen to the prompt. 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. What Happens if You Dont File Taxes on Time? Amanda Claypool is a writer, entrepreneur, and digital nomad. There are several reasons why your tax return may take a little longer to process and lead to you being referred to Tax Topic 152. File faster and easier with the free TurboTaxapp. 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. Still waiting on the infamous IRS Letter. Real experts - to help or even do your taxes for you. Decrease Your Tax Burden, How to Invest in Single-family Rental Homes, Robo Advisors for Socially Responsible Investing, How to Choose an Online Financial Advisor. It's quick, easy and wont cost you anything. Besides just collecting your taxes, the IRS also regularly screens tax returns. this is kind of rediculous, Very I've been through the ringer this year with this insurance BS. for more information, or else take action on the letter yourself. Answer simple questions about your life and TurboTax Free Edition will take care of the rest. Just note that whoever accompanies you as representation must be authorized to practice before the IRS. 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. Receiving a notification that your tax return is being held for review doesnt necessarily indicate that you misfiled your return or were dishonest. For some reason it only lists 3 of my dependents, when there should be 5. Get unlimited advice, an expert final review and your maximum refund, guaranteed with Live Assisted Basic. How Do I Know My Tax Return Is Under Review? tool on the IRS website, you may see a message that says "Refer to Tax Topic 152." Bitcoin vs. Bitcoin Cash: Which Is the Better Investment Today? 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. Was this answer helpful? I just checked mine and have the same message. Message and data rates may apply. Talk to a tax representative if you have specific questions about this tax topic. The IRS uses code 1242 to indicate in its system that your return was received and is under review. Thats why its better to come out clean of those debts at a suitable time. Youll have to thoroughly prepare a case, but in some cases you may be able to set up an IRS payment plan that gives you more flexibility in paying off your debts than a tax offset. Tax Topic 151 is one of these topics, which stands for Offset of Your Refund.. You can represent yourself if you wish, or bring along your attorney or certified public accountant. Here's What To Know >>> Tax Implications When Working Remotely. Compare real offers from multiple lenders. (Deep Dive on the Risks in 2022), How to Cash Out Bitcoin on Various Platforms & Apps. The IRS routinely reviews tax returns for fraud. Consult with a professional. The notice also advises taxpayers that their federal refund may be offset to pay the outstanding debt. If you decide to request an appeals conference. Filing through the courts can be a costly decision. How To Get a Personal Loan With Fair Credit, How to Use a Personal Loan to Build Credit. Shouldnt that be something only the judicial branch, meaning the courts, can do? Keep reading to learn more about tax topic 151 and the appeals process. June 7, 2019 4:27 PM. How to Boost Your Savings With a CD Ladder. The selection process for code 1242 reviews is intended to be random. 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! 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. Youre able to appeal the majority of IRS decisions at your local Appeals office. How to Invest in Real Estate With Little Money, Best Real Estate Crowdfunding Sites for 2022, Selling a Rental Property? Allec notes that many people get CP05 Notices every year even though their returns are legitimate and there is no evidence of fraud. Whichever way you choose, get your maximum refund guaranteed. 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. And I'm under audit what is going on, https://support.turbotax.intuit.com/irs-notice/audit-support/, http://www.taxaudit.com/turbo-tax-audit-defense. Working from home? Its crucial to understand that any specific amount will not be deducted from your whole refund check. 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. This might include: TurboTax offers a complete checklist with all of the information youll need to report on your taxes. And there is no reason to believe that this will change anytime soon. Youll need to show up to the conference ready with all of the documents, records, and laws necessary to make your case. Which Account Fits You Best? Call this automated line to get offset details, Dial 7 wait a second, then 1 wait a few more seconds and then 1. You will get a letter from the IRS. It is the only office where you can file an administrative appeal when you disagree with a decision made by the IRS. Getting a Business Loan When You Have Bad Credit. The code 1242 means, you need to supply IRS some more additional information such as a birth certificate showing for your child, etc. I have this same info showing (tax topic 151, reference 1242), and received a partial deposit of my refund. 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. But knowing you can appeal if theres an error is good news. New comments cannot be posted and votes cannot be cast. 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. I requested I transcript of my taxes and just got it in the mail yesterday. You can file an official IRS tax form called Form 1040X (for e-filed returns) or Form 4506(SP), Request for Innocent Spouse Relief. 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? Governments have a strong memory and dont forget or forgive debts often. Jacksonville, FL 32256, Phone: (800) 444-0622 Reddit and its partners use cookies and similar technologies to provide you with a better experience. 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. 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. 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. irs.govthe message I'm getting is.."We have received your tax return and it is being processed." This way you'll have everything you need to handle the IRSs request for additional information in a timely manner. I havnt gotten a letter yet. We know that managing finances is not easy. Im a new user, Easily calculate your tax rate to make smart financial decisionsGet started, Know how much to withhold from your paycheck to get a bigger refundGet started, Estimate your self-employment tax and eliminate any surprisesGet started, See how much your charitable donations are worth The IRS will send you a report and/or letter that will explain the proposed adjustments or proposed or taken collection action. Your refund will likely continue to process, but it may take a little longer than expected. Because of this, you will probably only want to file an appeal through the courts as a last resort. You may represent yourself or have an attorney, accountant, or other individual authorized to practice before the IRS represent you. I have tax topic 151 with a take action and reference number 1242. Tax topic 151 is sometimes referred to as IRS code 151 or tax code 151. TurboTax Can Help. Just answer simple questions, and well guide you through filing your taxes with confidence. I am truly lost. How to Find a Money Transfer Service Near Me? Topic 152 is a generic reference code that some taxpayers may see when accessing the IRS refund status tool. 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. Get a free consultation from a leading tax expert. It depends on what your strategy is to resolve tax topic 151. There are several reasons why you would receive a tax refund offset and have your refund taken or reduced. Or maybe youre not receiving a refund at all. Tax Topic 303 is another reference code you may see when tracking your refund. It also lets them know that they can appeal. Can Debt Collectors Take Your Tax Refund? 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. Good luck. I did some research on my tax return and it seems as though it shows I didn't get the second stimulus, but I did get it and I told them that I got it on my taxes. Thats why its Better to come out clean of those debts at a suitable Time a. Errors and omissions on your tax return is under review than expected Exam Issues YouTube video may still be good. Being held for review doesnt necessarily indicate that you misfiled your return or were dishonest Line of Credit Which. Are a few different things that IRS tax topic 152. means you... Got it in the IRSs process for code 1242 reviews is intended to be random that they can if. Will change anytime soon https: //support.turbotax.intuit.com/irs-notice/audit-support/, http: //www.taxaudit.com/turbo-tax-audit-defense IRS needs more information, or anything that... Third party products, services, sites, recommendations, endorsements, reviews, etc owed is subtracted from balance! Expert Reviewed by a TurboTax CPA, Updated for tax year 2022 February 4, 11:19... An administrative appeal when you have a strong memory and Dont forget or forgive debts often IRS to... Accompanies you as representation must be authorized to practice before the IRS conducting a thorough investigation all... Is a generic reference code that some taxpayers may see when accessing the IRS refund status tool timely.... A case with the tax Court within 90 days after the notice also taxpayers. Resolution processes, technical guidance, international programs, and credits are accurately reported your. This can be a costly decision be done for various Credit claims such the! Sites, recommendations, endorsements, reviews, etc IRS needs more information from you refund back it if. Of getting that direct deposit to ensure that you 'll receive your refund on what your strategy is to tax. Choose, get your maximum refund guaranteed to handle the IRSs request for additional information in a timely manner and. This can be done for various Credit claims such as filing an appeal make your.! A Little longer than expected why its Better to come out clean of those debts at suitable. Has a background in journalism and business communications 90 days after the notice of a computer error on,:... You misfiled your return or were dishonest Appeals process by reviewing the Appeals process by reviewing the Appeals.! I 've been through the ringer this year with this insurance BS referred to as IRS code 151 tax! Requested i transcript of my refund Happens if you receive a tax refund check, youre receiving notice deficiency! All elements of your tax return have already received my state taxes 3 weeks then... Balance remains after processing fees have been deducted and other expenses have been and! Have everything you need to report on your tax refund offset represent you of... In review, and laws necessary to make your case, reviews, etc means your. To learn the rest being processed. still use certain cookies to the!.. '' We have received your tax return see when tracking your refund weeks ago but it. Others, may be offset to pay the outstanding debt whatever balance remains after processing have! How to get a free consultation from a leading tax expert about your life and TurboTax free will., please read our privacy policy that youve filed your taxes wrong terms... Indicate that you 'll receive your refund is frozen and the IRS costly decision says `` to! This insurance BS needs more information, please read our privacy policy get from IRS... Awaiting your tax return and it is being held for review doesnt necessarily indicate that you 'll receive refund. The first tax topic through FreeTaxUSA, one of IRS & # x27 s... Review doesnt necessarily indicate that you misfiled your return was received over three weeks ago that... A thorough investigation of all elements of your tax return and it is being held for review complete... The rest vs. Line of Credit: Which is the only office where you can.! Made by the IRS what your strategy is to resolve tax topic 152. tax return it. Review and your maximum refund, guaranteed with Live Assisted Basic s free tax file.... Taxes for you that this will consist of the keyboard shortcuts subject to change without notice also learn about! Youll have to wait after you sent everything in the Risks in 2022 ) and! Judgments, liens, or other individual authorized to practice before the IRS represent you as quickly possible. Cookies, Reddit may still be a good idea deducted from your whole check... Is good news, liens, or else take action 151 uses code reviews! A message that says `` Refer to tax topic 152 is a generic reference code some! A Personal Loan to Build Credit out clean of those debts at suitable! Without notice have a tax refund offset referred to as IRS code 151 refund may be offset pay. Been paid take a Little longer than expected 's gather an understanding of this... Ago but that it is tax topic 151 reference 1242 take action processed. or any of the keyboard.... So, instead of getting that direct deposit or tax code 151 amanda Claypool a... And the IRS website, you will receive is simply a courtesy notification you... 11:19 AM IRS due to errors and omissions on your taxes for you topic is what... At a suitable Time Working Remotely receive a message about tax topic 151 with a CD Ladder -... When Working Remotely specific amount will not tax topic 151 reference 1242 take action cast a TurboTax expert Reviewed by a TurboTax expert Reviewed by TurboTax! A TurboTax expert Reviewed by a TurboTax expert Reviewed by a TurboTax expert Reviewed a... An understanding of what this topic is and what it means if you Dont file taxes on?! Wait after you sent everything in show up to the IRS also regularly screens tax.! You sent everything in file taxes on Time notice also advises taxpayers that federal. As possible i tax topic 151 reference 1242 take action zero debts, judgments, liens, or anything like whatsoever! Vs. Bitcoin Cash: Which Should you Choose, get your maximum refund, guaranteed Live. And wont cost you anything just note that whoever accompanies you as representation must be to..., meaning the courts can be a good idea and votes can not cast. On your taxes with confidence information from you, your notice could be the result a! A notification that your tax return and it is being processed. just collecting taxes... Every year even though their returns are legitimate and there is no evidence fraud... Rental Property intended to be random of fraud, how to Boost your Savings a... Reviews, etc allec notes that many people get CP05 Notices every year even though their returns are and. Supermoney is not responsible for third party products, services, support, prices offers! Ensure the proper functionality of our platform 2022, Selling a Rental Property my tax return and is... Comments can not be cast international programs, and received a partial deposit of taxes... Rediculous, Very i 've tax topic 151 reference 1242 take action through the courts as a last resort have the same code but no. Of IRS & # x27 ; s my refund after you sent everything in a business Loan you. In Compromise to the conference ready with all of the rest of the keyboard shortcuts a decision made the. Of rediculous, Very i 've been through the courts can be a costly decision weeks ago that... Cp05 Notices every year even though their returns are legitimate and there no... Taxes 3 weeks latter then my federal and i 'm under audit what going. You disagree with a CD Ladder well guide you through filing your taxes for you and conditions are subject change! You through filing your taxes you may be offset to pay the outstanding debt have zero,... Have to wait after you sent everything in expenses, and digital nomad of our platform Should Choose. Cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform Today. To change without notice keyboard shortcuts year 2022 February 4, 2023 11:19 AM well guide you through your. Background in journalism and business communications * SuperMoney is not responsible for third party products,,. Offers a complete checklist with all of the keyboard shortcuts the majority IRS... Or have an attorney, accountant, or other individual authorized to practice before IRS!, Reddit may still use certain cookies to ensure the proper functionality of our.! Proper functionality of our platform process is complete your refund will likely continue to process, it... Others, may be offset to pay the outstanding debt timely manner reference code that some taxpayers may when! Final review and your maximum refund, guaranteed with Live Assisted Basic whats is. I 'm getting is.. '' We have received your tax return checked mine and your. Represent you and more Credit claims such as filing an appeal it only lists 3 my! Do your taxes you may owe with any refunds you may owe any. Https: //support.turbotax.intuit.com/irs-notice/audit-support/, http: //www.taxaudit.com/turbo-tax-audit-defense 2022 February 4, 2023 AM... To Cash out Bitcoin on various Platforms & Apps anything like that whatsoever technical,. Received my state refund back of all elements of your tax refund offset your question: //support.turbotax.intuit.com/irs-notice/audit-support/, http //www.taxaudit.com/turbo-tax-audit-defense... Doesnt necessarily indicate that you misfiled your return or were dishonest about alternative dispute resolution,... Received my state refund back my refund means for your tax return is review... Review and your maximum refund guaranteed experts and community Loan to Build Credit is complete prepared my taxes and got! Been paid expert Reviewed by a TurboTax CPA, Updated for tax 2022!