On irs.gov it states my refund has a code 1242, what does this mean? (2024)

FAQs

On irs.gov it states my refund has a code 1242, what does this mean? ›

On irs.gov it states my refund has a code 1242, what does this mean? 1242 – Electronic return received more than 3 weeks ago; –E Freeze; in review, notice for additional information will be received. Should receive a letter from the IRS within 30 days requesting what additional info they need.

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.

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. The code indicates that the IRS has frozen your return for review, and the agency will send you a notice later.

The most common reason for the IRS to review a tax return is something called the Discriminant Function System (or DIF) score. The IRS uses a computerized scoring model that evaluates your return and gives it a score based on the likelihood that it will need to be changed.

It serves as an initial alert that the IRS is in the process of reviewing your tax return. It's important to note that this letter is not an audit notification. Instead, it informs you that your tax refund may be affected due to any outstanding debts you owe, or other factors identified by the IRS.

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.

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).

After you verify your identity and tax return information using this service, it may take up to nine weeks to complete the processing of the return. Visit Where's My Refund? or use the IRS2Go mobile app 2-3 weeks after using this service to check your refund status.

The first Tax Topic 151 letter you will receive is simply a courtesy notification. 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.

When the IRS is questioning whether a return is legitimate, it will send taxpayers a letter asking them to authenticate their identity, and it will not process their return and issue their refund until the taxpayer responds to the letter and completes the authentication process.

How do I know if my tax return has been flagged? ›

Taxpayers whose tax returns have been flagged for possible IDT should receive one of the following letters: Letter 5071C, Potential Identity Theft during Original Processing with Online Option – Provides online and phone options and is issued most widely.

Approval of the refund

They'll check your income reports, verify the deductions and credits you've claimed, and ensure everything aligns with the tax laws.

Unreported income

The IRS receives copies of your W-2s and 1099s, and their systems automatically compare this data to the amounts you report on your tax return. A discrepancy, such as a 1099 that isn't reported on your return, could trigger further review.

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.

Ive read around and the 151 means its being reviewed still and that you may owe something weather it be a student loan a traffic ticket etc.... The 1242 means they are going to need something from you like proof of a birth certificate on a dependent or foster care papers etc... They should send you a letter explaining.

Tax Topic 151 means your tax return is now under review by the IRS. The agency either needs to verify certain credits or dependents, or it has determined that your tax refund will be reduced to pay money that it believes you owe.

A Transaction Code (TC) 810 or TC 570 indicates a stopped/frozen refund. TC 810 or TC 570 is used by Exam or Automated Questionable Credit (AQC) if a taxpayer's return is under review or the previous review is not closed.

One of the most common is Tax Topic 152, indicating you're likely getting a refund but it hasn't been approved or sent yet. The notice simply links out to an informational topic page on the IRS FAQ website explaining the types and timing of tax refunds.

If your ITR is processed but refund is not issued, it will show status 'Processed with refund due'. It normally takes 20 to 45 days after the ITR processing to receive the refund amount.