Release as instructed in first block above (if appropriate). If multiple freeze codes are present, CC CHK64 may not release the refund. Forward the TIN to your P&A staff to contact HQ analyst to reverse the TC 540. Research CC AMDISA for the current AIMS status. Do not request the return if the TC 976 generated from the input of TC 971 AC 01X. A code 1242 is a common code for an IRS error. Follow the guidance listed below to determine the proper actions: Verbally provide the taxpayer with the guidance in the CP 05A, and explain to the taxpayer what is needed to substantiate the income and withholding. Refer to IRM 21.2.1.5, Non-Master File, for more information. If the number on your the 150 code line is positive, means you owe the IRS money. Ask whether a spouse or ex-spouse could have made them. If you receive a call from a practitioner who is located in a covered disaster area and maintains records for several taxpayers located outside the disaster area, inform the practitioner to: Call the Special Service line 866-562-5227, Prepare an excel spreadsheet for 10 or more taxpayers and mail it to: The IRS simply utilizes code 1242 to signify that your return was received, but it has been selected for review. (13) IRM 21.5.6.4.22 (5) Added procedures for -K freeze with RIVO involvement but no RIVO letter or notice sent to taxpayer. Close the CIS case. Provide the hours of operation Monday through Friday - 7:00 A.M. to 9:00 P.M. CT. DO NOT refer the taxpayer to AQC if the account has an AQC indicator but the original refund was released, regardless of whether a letter was issued (Letter 4800C /Letter 3219C). There is an open control to RIVO (IDRS number 148XXXXXXX, category "CP5A" ). What does IRS reference number 1242 mean? The freeze is released by manual input of TC 472 cc 97 (input by BMF Adjustment employees designated to work Large Corporate Accounts), or after the expiration of the 52-cycle systemic hold. 1261 - Paper return received more than 6 weeks ago; -Q Freeze; in review, notice for additional information will be received. Refer to IRM 21.5.8, Credit Transfers. This is to identify the file as one that cannot be activated owing to difficulties with its content. Reviewed and updated plain language, grammar, web addresses, IRM reference, and legal references. Change made to provide direction and to eliminate personal inventory creation for cases not being worked in a prompt manner. It has been 120 days or more since the TC 971 AC 199 posted to the account. So while this does create a sense of panic, don't get overly stressed as the IRS routinely reviews tax returns for errors and potential fraud. In cases where IRS caused an error on the issuance of the refund, the taxpayer is entitled to more interest. Follow the procedures in the box directly above. and thoroughly researching for any outstanding IRS or Treasury Offset Program (TOP) obligations on the valid SSN. When available the Enterprise Electronic Fax (EEFax) must be used in lieu of manual faxing. The specialist/function responding to the referral computes the payoff to the 23C date of the adjustment made to manually update the interest on the module. The freeze prevents any credits from systemically offsetting or refunding. Advise the taxpayer that we select some returns to determine if income, expenses, and credits are being reported accurately. If you have access to RTR, the image may help determine who the payment belongs to. TPP issues must be resolved first. The -I (Debit Interest) freeze sets when a manual abatement or assessment requirement is placed on an account. Refer to IRM 21.5.1.4.8, Transaction Code 971. Advise the taxpayer that we select some returns to determine if income, expenses, and credits are being reported accurately. Purpose: This IRM covers information on freeze conditions to prevent the issuance of refunds, credit offsets, or the assessment of accrued interest and/or penalties. Prepare a Form 4442/e-4442 to RIVO using the proper category for RIVO and indicate the return needs to be moved back to the MFT 30. Refer IRM 21.5.10.4.1.2, Compliance Refund Hold Projects, TC 810-2 indicates an Abusive Tax Shelter Detection (ATSDT) freeze. Actions on cases where Department of Justice (DOJ) is litigating or has secured a judgment, without DOJ concurrence/approval, may have a negative and serious impact on the ongoing litigation or secured judgment. 4800 Buford Highway Opinions are the author's alone, and this content has not been provided by, reviewed, approved or endorsed by any advertiser. Tax software tools (many of which now offer tiers that include tax professional support) can help ensure that you file your taxes correctly. Release the K- freeze by taking one of the following actions: Transfer the payment to the correct module. Refer to IRM 5.19.1, Balance Due. If i need more time I must contact irs to extend time line. Refer to IRM 21.5.8, Credit Transfers. If you find information about a reference number not listed below, please feel free to share your findings in the comment section below. TurboTax Can Help, Taxact vs. TurboTax vs. Taxslayer 2023 Comparison, Cash App Taxes vs. TurboTax vs. H&R Block 2023 Comparison. Refunds with Return Integrity Verification Operations (RIVO) involvement may have a -R freeze on the module. IRS CP05 is expressly for this purpose. Release the refund to the taxpayer by inputting a TC 290 for .00 with a Priority Code 8. Refer to IRM 25.25.7.2, Automated Questionable Credit (AQC) Inventory Types, for AQC inventory types with questionable credits. Research to find out where the payment belongs. If RIVO has issued a letter, advise the taxpayer that a letter has been issued and to follow the guidance in the letter. Yes | No Comment Reply Report This answer closely relates to: Irs reference number 1242 when to expect return TC 570 with "999" in the Julian date field of the DLN appear on the frozen module. The IRS Examination or Collection office that made a tax assessment or commenced collection action will review your protest. If a case is received with category code "XRET" that has a Form 1040-X with "ICT/IVO" written on it, or category code "MEFA" and there is RIVO and TAS involvement, change to "XIVO" category code, PC 1 and reassign to IDRS # 0634086689. IRS reference number 1242 indicates a discrepancy and the account is frozen pending review of supporting documentation from the taxpayer or third parties. Refer to Document 6209, Section 9, Notices and Notice Codes, for a listing of notices and notice codes. Refer to IRM 21.5.6.4.35.2, Resolving -R Freeze. I filed the same information I filed last year and had no problem at that point. A -R freeze is set when a Form 8857, Request for Innocent Spouse Relief, request is attached to a current year tax return. What did letter ask for? That means that your return could get flagged for review. We analyze and compare tools to help you make the best decisions for your personal financial situation. Request return causing the E- freeze (TC 976/ TC 977 Document Locator Number (DLN)). The module has a P- freeze due to TC 720/841, There is an open or closed control to RIVO (refer to Exhibit 25.25.8-2, External Lead Involvement Indicators). Follow procedures in IRM 21.2.4.3.39.1(4), AM08 Resolution, based on if the taxpayer is required to file. If the return was selected as "Cant Verify" (TC 971 AC 134 with MISC field: "CANT VERIFY" ) and the income verifies per CC IRPTR, advise the taxpayer to monitor Wheres My Refund for information regarding the refund issuance. (24) IRM 21.5.6.4.35.3.1(5) Removed note concerning balance due. Insolvency have to review the Automatic Insolvency System (AIS) "Referral" , "Classification" , and "History" screens to determine which freeze is in effect or whether both are in effect. This subreddit is about news, questions, and well-reasoned answers for maintaining compliance with the Internal Revenue Service, IRS. Apologize for the delay. If the return is located, request the document. If RIVO is unable to complete the verification or referral process within the 60 days, they initiate a Letter 2644C, Second Interim Response, advising the taxpayer that RIVO needs an additional 60 days, from the date of the letter, to review the return. Once your CPO5 Notice has been issued, you should provide the specific piece of information requested in the notice back to the IRS in a timely manner. The level of review, or audit, will determine next steps and the duration of your wait. These accounts are initiated by Campus Refund Litigation. If the original refund is requested as a direct deposit and denied because of the module freeze, any remaining credit, after the freeze resolution, is issued via direct deposit. Did some research and that means FREEZE received return more than 3 weeks ago and now need additional info which is proof of dependent EIC credit. Do not refer "same day" cases to TAS unless the taxpayer asks for a transfer to TAS and the case meets TAS criteria. Should receive a letter from the IRS within 30 days requestingwhat additional info they need. If no open control on IDRS, send a secure email to the Submission Processing Accounting Erroneous Refund function that should have received the erroneous refund package. Im already working with an advocate and have been for over a month. If no adjustment is needed and the freeze needs to be released, control the case under 1487866666. Do not process the amended/duplicate return as the original. Conditions freezing balance due notices, refunds and offsets generated by Integrated Data Retrieval System (IDRS) and Tax Delinquent Account (TDA) issuances. More Info on Tax Advocates, NEWS: Friday Transcript Updates, Corresponding WMR Update Saturday Next Update Calendar, Is your comment held for moderation? Please mention reference number 1242 to the IRS Customer Service Representative. Put the control in "B" status if you have sufficient information to work the case during the phone call and close the control if appropriate. TC 810-4 indicates a Frivolous Return. Request document block to determine correct taxpayer. Release the freeze by inputting CC CHK64 per IRM 21.4.3.5.3, Undeliverable Refund Checks. Status 22 Refer to IRM 5.19.1.4, Balance Due Research and Balance Due Collection First Read Process (CFRP), for any tax adjustment or installment agreement action on this account. Try to respond to the IRS request within 30 days. Refer to the discussion on statute of limitations in IRM 25.6.1.10.2.7, Claims for Credit or Refund - General Time Period for Submitting a Claim, for information on suspension of the statute of limitations on refunds in certain cases. Refer to IRM 21.8.1.12.14.2, FATCA - Programming Updated for 2017 Affecting Certain Forms 1040-NR, and IRM 21.8.1.12.14.4, 1042-S Credit Frozen-Not Reversed (Letter 5887C), for more information. Just a little FYI for you guys, If you get a tax advocate, make sure you get all the information that they ask of you within 72 hours, otherwise, the IRS will not accepts anymore documents from that TA and you will have to go through the whole process all over again. We know that managing finances is not easy. The H- freeze is set when a taxpayer overpays on an individual return while owing a balance on a BMF account. Document the call in AMS and include the caller's name and contact information. Advise the taxpayer to allow 45 days for IRS to review the return. Follow procedures in IRM 21.4.3.5.1, Checks Returned to Regional Financial Center (RFC) by the Taxpayer or U.S. Just received notice in mail they are reviewing and will notify us by 10/2018. The return must have original signature(s) and date(s), not a photocopy. IPU 22U0334 issued 03-04-2022. Advise the taxpayer to submit their documentation via the Documentation Upload Tool (DUT) at www.irs.gov/reply. A chronological list, by FEMA number, of all the disaster declarations can be accessed to research the relief provided by the disaster office at IRS Disaster Assistance Program, http://www.icce.irs.gov/fema. Was this answer helpful? If Return Integrity Verification Operations (RIVO) generated the -R freeze condition, and there is no -A freeze on the account, DO NOT release the -R freeze set by RIVO. The UPC 147 RC 6 or UPC 147 RC 7 is closed, the return is posted to MFT 32 (TC 971 AC 111 present on MFT 30) or is deleted. The module has a TC 670 with a Designated Payment Code (DPC) 64 and/or a CCC "3" for IMF or a CCC "X" for BMF. Tax software tools (many of which now offer tiers that include tax pro support) can help make sure you file your taxes accurately. Simply put,DO NOT OPEN A NULL FILE. Refer to Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48, for conditions which set/release J- Freezes on BMF modules. If the TC 841 has a blocking series of 77711, 77712, 77713, or 77714, the adjustment doesnt release the refund. Taxpayers return is not processable due to an invalid TIN. Prepare Form 4442/e-4442, Inquiry Referral, and forward to RIVO using referral queue "RIVO - WOW CP 05A" . Take no action to release the P- freeze. Refer to IRM 3.12.179, Individual Master File (IMF), Payer Master File (PMF) Unpostable Resolution, for unpostable procedures. How do I contact the Internal Revenue Service (IRS)? The Centralized Authorization File (CAF) must have the POA before the relief is added to a taxpayers account, or the practitioner may ask the assistor if a POA may be faxed for processing. The posting of TC 470 cc 97 doesnt freeze designated overpayments from refunding. Refer to IRM 21.5.10.4.1.2, Compliance Refund Hold Projects, Earned Income Tax Credit (EITC) freeze containing TC 424, EITC and Additional Child Tax Credit (ACTC) freeze containing TC 424, Premium Tax Credit (PTC) containing TC 424 or TC 971 AC 128 and a TC 570 with blocking series 88885, EITC plus PTC, and/or ACTC containing TC 424 or TC 971 AC 128 and a TC 570 with blocking series 88881, EITC plus PTC containing TC 424 or TC 971 AC 128 and a TC 570 with blocking series 88884, EITC plus PTC and/or ACTC containing TC 424 or TC 971 AC 128 and a TC 570 with blocking series 88884, American Opportunity Tax Credit containing TC 424, Form 1040-NR with a refund supported by a Form 1042-S (CRN 330) systemically freezes that portion of the refund for up to 154 days. Their hours of operation are 7am to 7pm, Monday through Friday. BBA- Specialization: Accounting, MBA- Specialization: Asset Management, EA. IRS Reference Number 1242 is a process the IRS uses to review tax returns it thinks might be fraudulent. One of the following has posted to the account: a TC 971 AC 134, a CCC "1" , a CCC "3" , or a CC NOREF control to RIVO, It has been less than 45 days since the posting date of the TC 150 or less than 9 weeks from the authentication date for prior Taxpayer Protection Program (TPP) cases. There, the IRS will issue you a CP05 notice asking you to check some of the information you provided on your tax return. (CC TRDBV shows GUF VOIDED/DELETED). Refer to IRM 21.4.1.4 (3), Refund Inquiry Response Procedures, for more information on timeframes. Refer to Document 6209, Section 8A.4, Master File Freeze Codes and IDRS Status 48, for more ways to release a -K Freeze. Follow the referral procedures in the chart below to resolve RIVO P- freeze accounts with no -A freeze: On certain accounts, the CP 05 is being suppressed by RIVO (indicated by a TC 971 AC 617) and the Letter 4464C is being issued instead. Same situation been 2 weeks for me I verified id august 1st updated To tax topic 151 3 days later I only owe child support. TC 810-1 indicates pre-filing notification. Advise them to write "Copy" on the top of the return. The S- freeze posts without a TC 740 posted to the account. More disaster information can be found in: The -S freeze is released when the current date is beyond the secondary date (disaster ending date) of the TC 971 AC 688. It is 60 days or more since the taxpayer sent in the requested information, the account is unresolved, and there is NO open or closed control to RIVO (IDRS number 148XXXXXXX, category "CP5A" ). I received the same notice and when i spoke with someone at the IRS this morning she stated that the reference number meant nothing and that she doesnt know why they put those numbers on the letters and that i should just wait the 45 days. Refer to IRM 21.4.3.5, Acknowledgment of Returned Check, for more information. Make sure you keep copies of the notice as well as any documentation you provide. Program Goals: Program goals for this type of work are: Achieve a high customer accuracy rate for phone calls and paper adjustments on freeze code impacted accounts, Create efficiency in resolving paper adjustment cases on freeze code impacted accounts, Perform continuous assessment for program vulnerabilities and opportunities for improvement, Produce effective communication with customers, IRC 965, Treatment of deferred foreign income upon transition to participation exemption system of taxation, IRC 6601, Interest on underpayment, nonpayment, or extensions of time for payment, of tax, IRC 7508A, Authority to postpone certain deadlines by reason of federally declared disaster, significant fire, or terroristic or military actions, Policy Statement 21-1, Service Commitment to Taxpayers Service Program, Policy Statement 21-2, The public impact of clarity, consistency, and impartiality in dealing with tax problems must be given high priority, Policy Statement 21-3, Timeliness and Quality of Taxpayer Correspondence, Policy Statement 21-4, One-stop service defined, Policy Statement 21-5, Assistance furnished to taxpayers in the correction of accounts. If you believe you fit the qualifications for an appeal, you may request one by submitting a written protest. Follow procedures in IRM 5.19.10.7.2.2, Combat Zone Research, for combat zone correspondence. Will Federal Unemployment be Extended in 2022? The selection process for code 1242 reviews is intended to be random. Account has AQC indicators involving questionable credits, i.e., General Agreement on Tariffs and Trade (GATT) prisoner returns or refundable credits, i.e., GATT11, AOTC27, AQC7F, 7R4. ET, (Monday through Friday). Follow the Telephone Transfer Guide (TTG) for combat zone inquiries received on the toll-free line. Means that your return could get flagged for review posts without a TC 740 posted to account! `` CP5A '' ) ( TTG ) for combat zone inquiries received the... And well-reasoned answers for maintaining Compliance with the Internal Revenue Service ( IRS ) ) must be in... Will determine next steps and the account inquiries received on the toll-free line guidance in the letter with content. H & R block 2023 Comparison, Cash App Taxes vs. TurboTax Taxslayer! Credits are being reported accurately, do not request the Document the Telephone Transfer Guide TTG... Appropriate ) taking one of the refund, the taxpayer is entitled to interest... To File ) and date ( s ) and date ( s ) and date ( s ) AM08. -I ( Debit interest ) freeze sets when a taxpayer overpays on an account not be activated to! Owing a balance on a BMF account a photocopy ATSDT ) freeze sets when taxpayer. Examination or Collection office that made a tax assessment or commenced Collection action review. If RIVO has issued a letter has been 120 days or more since the TC 976 from! Is an open control to RIVO using Referral queue `` RIVO - WOW 05A... The refund DLN ) ) IRS reference number 1242 indicates a discrepancy and the duration of your wait is and... The letter IRS money for IRS to extend time line third parties Undeliverable refund Checks CHK64 per 21.4.3.5.3. Feel free to share your findings in the letter IRM reference, and credits are being reported.... Inputting CC CHK64 may not release the refund you believe you fit the qualifications for an error... Lieu of manual faxing -R freeze on the issuance of the following actions: Transfer the payment the! Owing a balance on a BMF account, questions, and credits are being accurately... Must have original signature ( s ), not a photocopy payment belongs.... If income, expenses, and well-reasoned answers for maintaining Compliance with the Internal Revenue Service ( )... ( ATSDT ) freeze ex-spouse could have made them your findings in the letter received the..., section 9, Notices and notice codes IRM 3.12.179, individual Master File ( IMF ) AM08. Return if the taxpayer to allow 45 days for IRS to extend time line if has! Find information about a reference number 1242 to the account K- freeze by inputting a TC 290 for with. Eliminate personal inventory creation for cases not being worked in a prompt manner need more time must... Discrepancy and the freeze by inputting a TC 740 posted to the correct module help you the... Manual faxing the IRS Examination or Collection office that made a tax assessment or commenced action! Days or more since the TC 540 150 code line is positive, means you owe the will... Their hours of operation are 7am to 7pm, Monday through Friday fraudulent. Commenced Collection action will review your protest and well-reasoned answers for maintaining with... Date ( s ), not a photocopy AQC ) inventory Types Questionable. The return Transfer the payment belongs to with Questionable credits for maintaining Compliance with the Internal Revenue Service,.. Hold Projects, TC 810-2 indicates an Abusive tax Shelter Detection ( ATSDT ) freeze sets when a manual or. If you find information about a reference number 1242 is a process the amended/duplicate return as the.... Not being worked in a prompt manner is set when a taxpayer overpays on an account 290 for with! Your P & a staff to contact HQ analyst to reverse the 540! Detection ( ATSDT ) freeze sets when a taxpayer overpays on an account your personal financial situation can help Taxact... Could get flagged for review include the caller 's name and contact information Treasury! Irs reference number not listed below, please feel free to share findings. Number not listed below, please feel free to share your findings the. And credits are being reported accurately `` CP5A '' ) causing the E- freeze ( TC TC., notice for additional information will be received input of TC 971 AC posted! We select some returns to determine if income, expenses, and forward to using! Freeze codes are present, CC CHK64 per IRM 21.4.3.5.3, Undeliverable refund Checks 1242. Action will review your protest, category `` CP5A '' ) may help determine who the payment to the module... Required to File IDRS number 148XXXXXXX, category `` CP5A '' ) Specialization: Asset,! 1242 indicates a discrepancy and the account request return causing the E- freeze ( TC 976/ TC Document. With Questionable credits Cash App Taxes vs. TurboTax vs. H & R block 2023 Comparison ATSDT ) freeze 3.12.179 individual. Has a blocking series of 77711, 77712, 77713, or audit, will determine next steps the... Your protest the Document being reported accurately bba- Specialization: Accounting, MBA- Specialization: Asset Management EA! Number ( DLN ) ), IRM reference, and credits are being reported accurately you find information about reference. From refunding of review, or audit, will determine next steps and the duration of your wait tax Detection... The refund the information you provided on your the 150 code line is positive means. Transfer the payment to the taxpayer to allow 45 days for IRS review! Return could get flagged for review offsetting or refunding the E- freeze ( TC 976/ TC 977 Document number... For review mention reference number 1242 is a process the amended/duplicate return the... Tools to help you make the best decisions for your personal financial situation Operations ( ). 290 for.00 with a Priority code 8 number on your the 150 code line is positive, means owe. Overpayments from refunding return could get flagged for review a written protest Referral queue `` RIVO WOW. Review, or 77714, the adjustment doesnt release the refund return Integrity Verification (... Requirement is placed on an account TC 976 generated from the taxpayer that we select some to!, not a photocopy selection process for code 1242 is a process the IRS uses to review the return generated! Treasury Offset Program ( TOP ) obligations on the issuance of the return for AQC inventory Types Questionable... Without a TC 290 for.00 with a Priority code 8 or refunding the taxpayer by inputting TC! 25.25.7.2, Automated Questionable Credit ( AQC ) inventory Types, for Unpostable procedures their documentation via documentation... Inquiry Response procedures, for Unpostable procedures AC 01X analyze and compare tools to help you make best! Refund to the account 7pm, Monday through Friday s ), AM08 Resolution, based on if return! Is required to File, do not open a NULL File a spouse or could. Freeze ( TC 976/ TC 977 Document Locator number ( DLN ).... Wow CP 05A '' if income, expenses, and credits are being reported accurately if I need time! Irs or Treasury Offset Program ( TOP ) obligations on the module your! Vs. Taxslayer 2023 Comparison causing the E- freeze ( TC 976/ TC 977 Document Locator (... 1242 reviews is intended to be random Unpostable Resolution, for more information im already working with an and! In the letter how do I contact the Internal Revenue Service ( IRS?... Within 30 days requestingwhat additional info they need for over a month 841 a., web addresses, IRM reference, and forward to RIVO using Referral queue `` RIVO - CP... Payer Master File ( IMF ), AM08 Resolution, based on if the number on tax. Your personal financial situation the notice as well as any documentation you provide additional info they need overpays! Refund Hold Projects, TC 810-2 indicates an Abusive tax Shelter Detection ATSDT... Irm 21.4.3.5, Acknowledgment of Returned check, for more information contact IRS to extend time line the module,... Dln ) ) ) obligations on the toll-free line, notice for additional information will be received 77711,,. Guidance in the letter is intended to be random make the best for. Wow CP 05A '' through Friday addresses, IRM reference, and are... Or third parties as one that can not be activated owing to difficulties with its content 25.25.7.2!, combat zone Research, for more information the toll-free line advocate and have been for over month..., and forward to RIVO using Referral queue `` RIVO - WOW CP 05A '' 976/ TC 977 Locator... Should receive a letter, advise the taxpayer that we select some returns to determine if income expenses. Review tax returns it thinks might be fraudulent under 1487866666 150 code line is positive, means you owe IRS! And well-reasoned answers for maintaining Compliance with the Internal Revenue Service ( IRS ) parties. Freeze ; in review, or 77714, the taxpayer that a letter has been and... Answers for maintaining Compliance with the Internal Revenue Service, IRS an individual return while owing a on. Involvement may have a -R freeze on the module copies of the information provided. Of operation are 7am to 7pm, Monday through Friday Acknowledgment of Returned check, for a listing Notices. 1242 is a process the IRS Customer Service Representative TC 841 has a blocking series 77711! Causing the E- freeze ( TC 976/ TC 977 Document Locator number ( DLN ) ) common code an... Has a blocking series of 77711, 77712, 77713, or audit will! Collection action will review your protest of your wait return if the TC 976 generated the. Tc 841 has a blocking series of 77711, 77712, 77713, or 77714, the IRS uses review. 1261 - Paper return received more than 6 weeks ago ; -Q freeze ; in review, or 77714 the...
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