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? ›

The IRS uses code 1242 to indicate in its system that your return was received and is under review.

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...

See our Held or Stopped Refund page or our video for more information. 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.

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.

If your debt meets submission criteria for offset, BFS will reduce your refund as needed to pay off the debt you owe to the agency. Any portion of your remaining refund after offset is issued in a check or direct deposited as originally requested on the return.

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.

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 IRS will attempt to verify whatever information triggered the review. In the meantime, you won't be issued a refund if you're expecting one. If you owe taxes, you will still need to pay by the tax filing deadline to avoid a penalty.

The IRS is reviewing your return because there is something in your return that they want to verify or look at more closely. It still does not automatically mean that you are being audited, but it does mean the IRS is taking a closer look at your return.

But generally if your tax return is flagged, you would get some sort of notifications or you can always go to the portal to check the status of your submission. Normally, an internal flagging for further investigation can't be made known to you until the tax guys are certain they need further information from you.

What does 1242 tax code 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. Example: AB got code 1242.

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.

Confused and worried about refund being reduced/withheld. Explain Tax Topic 151 means refund offset for debts. Recommend reviewing notice and contacting relevant agency (e.g., student loan servicer) to resolve debt. Take Action message but already verified identity.

You can contact the agency with which you have a debt to determine if the debt was submitted for refund offset by calling the Bureau of the Fiscal Service at 800-304-3107 (or TTY/TDD 800-877-8339), Monday through Friday 7:30 a.m. to 5 p.m. CST.

Short answer: IRS sends electronic transfers to all financial institutions on Friday evenings to be posted the following Tuesday (Monday @ midnight) You can always check your pending transactions via online or mobile banking. It's been this way since 1987… Hope this helps! They deposit funds 24/7.

This means the IRS experienced a higher volume than normal of electronic payments, which has caused a significant delay in processing payment records for payments received on or after April 18, 2024.

26 U.S. Code § 1242 - Losses on small business investment company stock. such loss would (but for this section) be a loss from the sale or exchange of a capital asset, then such loss shall be treated as an ordinary loss.

A dependent exemption is the income you can exclude from taxable income for each of your dependents.

Why is my return being reviewed? (updated Aug. 7, 2024) While we accept most tax returns as filed, we select some for review. The IRS reviews some federal tax returns to determine if income, expenses, and credits are reported accurately.

Does seeing Tax Topic 152 mean there is a problem with my tax return? No, seeing Tax Topic 152 does not mean there is a problem with your tax return. It simply indicates that your return is under processing by the IRS.