handles taxpayer disputes with the IRS over things like income tax, estate tax, gift tax, and certain other taxes. TurboTax helps walk you through these steps when filing your return. On the other hand, you can take your case to the US District Court or US Court of Federal Claims when your case involves a refund of any type of tax. This field is for validation purposes and should be left unchanged. Another thing IRS Tax Topic 151 can mean is that its a way to collect unpaid taxes. To avoid receiving a Notice of Intent to Offset, 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. After this listen to the prompt. Unlike other codes that a taxpayer might encounter, Tax Topic 152 doesn't require any additional steps from the taxpayer. The 1242 number is a freeze on your refund. In some cases, your notice could be the result of a computer error. Moreover, the IRS will pursue action against you if you dont have enough money. See. It tells you why your tax refund is being reduced or withheld. Level 15. While a lost or reduced tax refund is bad news, it is far from the worst news you could get from the IRS. sunken stomata and transpiration.. tax topic 151 good or bad. It could be as short as four weeks or drag on well past that and be a long time if there are complications or court proceedings. How Much is the Tax on a Vehicle in Georgia. I e.filed my state taxes 3 weeks latter then my federal and I have already received my state refund back. We also got the 1242 status code, we received a letter telling us to send in more proof of head of household, birth certificates for the kids, etc. If you submit your return electronically, you should get the IRS tax topic letter around 21 days after filing. to receive guidance from our tax experts and community. The good news is, if the IRSs action is based on incorrect information, it can be appealed. This means that youll have to file a case with the US Tax Court, the US Court of Federal Claims, or your US District Court. Taking your tax-debt mountain (by strategy), reviews and comparisons of the best tax relief companies with tax attorneys on staff. 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. faxed over info on 04/05. (Annoyingly, however, it can lead to delays in getting your refund). We received back a tiny amount of money so we called to see why and was told to just wait for another letter in the mail. So, instead of getting that direct deposit or tax refund check, you're receiving notice of a tax refund offset. If the taxpayer can quickly resolve the outstanding debt, the notice can be a helpful reminder to do so. With over eight years of experience in tax controversy, Sarahs experience includes a wide range of complex tax issues including high-dollar individual income tax collections, Trust Fund Recovery employment tax liabilities, and corporate audit cases. (Request for Appeals Review) and outline what you disagree with and why. Here are a few of the most common: Up till now, this article has simplified the picture of a tax topic 151 notice or letter. Here we'll take a closer look at both of these options. to receive guidance from our tax experts and community. How Do I Respond to an IRS Reference Number 1242? Call this automated line to get offset details 18003043107 Dial 7 wait a second, then 1 wait a few more seconds and then 1. 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. Find Your Best Match for Student Loan Refinancing. TurboTax customersweve started your estimate. It can be alarming, as the notice often says to take action immediately. Free Military tax filing discount. 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. Under these circumstances, youll have to make your case to The Independent Office of Appeals, which is an agency unrelated to the IRS that exists to mediate and resolve tax controversies. You have clicked a link to a site outside of the TurboTax Community. So, it would be best to be careful because some debts or taxes have interest or penalties. This means the IRS believes that you owe some debt that can legally be paid out of any tax refund you have coming. If you decide to request an appeals conference. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_3" ).setAttribute( "value", ( new Date() ).getTime() ); Community Tax, LLC Beyond the basics, this list also includes information on non-work-related income, such as dividends, and information for reporting credits and deductions, such as childcare costs or the charitable contributions you made during that tax year. Once again, consider seeking expert assistance. Get started, Estimate capital gains, losses, and taxes for cryptocurrency sales To clear this issue, contact them at: IRS Tax Help Line for Individuals (800) 829-1040. By clicking "Continue", you will leave the Community and be taken to that site instead. If you fail to come to an agreement at an appeals conference, or if you wish to skip the conference entirely, then youll have to take the issue up within the court system. So, if you have unpaid taxes, this is something to be aware of. It depends on what your strategy is to resolve tax topic 151. Topic 152 is a generic reference code that some taxpayers may see when accessing the IRS refund status tool. That being said, one of the reasons the IRS conducts these types of reviews is to prevent fraud, especially identity theft. As well, the likelihood that a court will assess the evidence differently than the IRS may not be high, since courts often defer to the judgment of agencies like the IRS, at least in the opinion of some. 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. It can get overwhelming fast, especially if your long-awaited tax return doesnt show up. Tax Topic 303 is another reference code you may see when tracking your refund. New Member. Its important that you dont guess or estimate when filling in any of these amounts. Filing an appeal directly with the IRS is the most straightforward way to address your tax topic 151 classification. You may represent yourself or have an attorney, accountant, or other individual authorized to practice before the IRS represent you. Anyone else seeing this on their accounts getting their tax withholdings back but not the EITC part yet? Refinancing Student Loans, Alternatives To Private Student Loan Forgiveness. Savings vs. Money Market? I havent received no letters & i dont owe any offsets so idk if j should call at this point or what. So, if you have a refund coming to you, the IRS can use that money to pay off any remaining taxes or debts you owe. After you file. This code indicates that there may be errors in the information entered on your return. See if you qualify, Where's My Tax Refund? But knowing you can appeal if theres an error is good news. I have a freeze and waiting for letter(s). If youre willing to put in the time and energy, an appeals conference can be a great way to get some of your tax refund back or have the tax topic 151 classification reversed entirely. Then says tell tax operator reference number 1242. I prepared my taxes through FreeTaxUSA, one of IRS's free tax file partners. Filing through the courts can be a costly decision. I called the number someone posted on here to check for offset but it says no debts are owed. Make sure you keep copies of the notice as well as any documentation you provide. I have the same code but with no reference number. This editorial content is not provided by any financial institution. Free Edition tax filing. Deluxe to maximize tax deductions. 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. For example, if you have unpaid income taxes, you should contact the team at Community Tax and talk to them about their income tax debt relief services. You can pay off the debt using a credit card, bank account at a financial institution, direct deposit, or debit card (or by writing a paper check) to get rid of it quickly. The first step is to request an appeals conference through a small case request or a formal written protest. How To Get a Personal Loan With Fair Credit, How to Use a Personal Loan to Build Credit. All about the refund | Ask the Experts Live Ev Premier investment & rental property taxes. Code 1242simply means that your return was e-filed 3 weeks ago and your refund is frozen while theIRSasks for more information such as a birth certificate for a dependent, etc. For more information, please read our, IRS Reference Number 1242: What It Means & How to Respond, How to Invest $1,000: 8 Best Ways to Invest Right Now, How to Invest 50k: The Best Place to Invest Money Right Now, How to Know If a Company or Fund Is Really ESG, How to Diversify Your Investment Portfolio, Stansberrys Investment Advisory Newsletter, Motley Fool vs. Jim Cramers Action Alerts Plus, Motley Fool Stock Advisor vs. Rule Breakers, The Motley Fool vs. Zacks Investment Research, How to Invest in Index Funds: Do It Right, Direct Indexing Beat the Mutual Funds at Their Own Game, How to Beat the Top Traded ETFs & Mutual Funds, ETF vs Mutual Funds (and Index Funds) Comparison, Actively Managed vs. Passively Managed Funds, Should You Invest in Bitcoin? 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