I received a message on where's my refund with 1242 as the code what is that? (2024)

FAQs

I received a message on where's my refund with 1242 as the code what is that? ›

The IRS uses code 1242 to indicate in its system that your return was received and is under review. From there you'll be issued a CP05 Notice from the IRS requesting that you verify some of the information you provided in your tax return.

Tax transcript code 846 Refund Issued on your tax. transcript means that the IRS has issued you a refund. on your tax return.

You received a Tax Topic 151 notice from the IRS because they're reviewing your tax return and have identified potential issues or outstanding debts, such as unpaid taxes, child support payments, federal student loans, etc. The IRS is notifying you as a courtesy to inform you that your tax refund may be affected.

Transaction code 846 signals a refund, plus any interest, has been approved by the IRS.

Not all debts are subject to a tax refund offset. To determine whether an offset will occur on a debt owed (other than federal tax), contact BFS's TOP call center at 800-304-3107 (800-877-8339 for TTY/TDD help).

The transcript also provides a processing date, estimating when your refund will be issued, often within 21 days of the cycle code date.

This means the IRS has sent your refund to your financial institution for direct deposit.

Often paired with Tax Topic 151, reference code 1242 means that the IRS has selected your return for further review. This code applies to returns that have been e-filed at least three weeks ago.

IRS Reference Number 1242 is a code the IRS uses to notify you that your return has been selected for review. Your return will remain frozen in the IRS's system until the review process is complete.

If the IRS is reviewing your return, the review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.

What does refund freeze mean? ›

When the IRS pursues back tax returns, the IRS can freeze any refunds you may be due until you file the old return. The only way to fix this issue and get your refund is to file the past-due return. If you owe taxes on the old return, the IRS will take that amount out of your current-year refund.

In the above example, tax credits, withholding credits, credits for interest the IRS owes to a taxpayer, and tax adjustments that reduce the amount of tax owed, are shown as negative amounts on the tax account transcript.

As a tax return is processed, there are transaction codes added to it to indicate changes. These transaction codes are three digits long. They are used to identify a transaction being processed and to maintain a history of actions posted to a taxpayer's account on the Master File.

Where's My Refund? will reflect a refund offset and different refund amount when it relates to a change in your tax return. Tax Topic 203, Refund Offsets for Unpaid Child Support, Certain Federal and State Debts, and Unemployment Compensation Debts has more information about refund offsets.

Offset letter

The letter explains that we plan to notify BFS of the debt if you do not pay in full within 60 days. BFS will send you a letter explaining why your federal refund was reduced and that it may take several weeks before the federal refund reaches FTB.

There is no specific form used to request an OBR. If you are experiencing a financial hardship and want to request an OBR, contact the IRS at 800-829-1040 or the Taxpayer Advocate Service (TAS) before you file your tax return with the IRS. Note: You must file your tax return with the IRS.

Once the IRS code 846 appears on your tax transcript, your refund has been approved and you will be receiving the payment soon. If you request direct deposit refunds, the money should be processed within 2 to 3 weeks.

Code 570 signals that your return and refund require additional scrutiny before processing. Code 150 typically signifies that your tax return has been filed successfully and has passed the initial processing stage. Code 766 signifies that a tax credit has been applied to your tax account.

Use the IRS Where's My Refund tool or the IRS2Go mobile app to check your refund online. This is the fastest and easiest way to track your refund. The systems are updated once every 24 hours. You can contact the IRS to check on the status of your refund.