Is tax Topic 152 a bad thing? At the very least, it could mean that your refund requires further review and no additional action is required on your part. Apr 13, 2021 at 2:40 PM I called turbo tax and the IRS said yesterday 4/13/2021 it is taking up to 10weeks to process refunds. The IRS will send you a report and/or letter that will explain the . The most common reason for the IRS to review a tax return is something called the Discriminant Function System (or DIF) score. If you choose to submit a small case request, fill out Form 12203, and outline your disagreements. There should be no cause for worry. Brooks that covers topics such as the swine flu, vaccines and vaccinations, quarantine, water. Buying a Mobile Home: What You Need to Know, Compare Motorcycle and ATV Insurance Reviews, Compare Personal Watercraft Insurance Reviews, Considering Renters Insurance? Tax Topic 152 is generic payout information generally seen if you have chosen direct deposit of your funds. You may have to pay for an attorney and, if the court does not rule in your favor, you could face a financial penalty. While the headline figures may be a small input for the Fed, the labor-supply mismatch has become more evident from the consumer confidence report. The IRS Tax Topic 151 can be good or bad depending on the taxpayer's situation. If you have any sort of dispute with the IRS or believe the agency is taking an unjust action against you, its smart to go directly to this office. The content on this blog is as is and carries no warranties. Youll generally receive two Tax Topic 151 Letters in the mail one notifying you that your return is under further review by the IRS and the other requesting additional documentation to complete the processing of your return. We can say that you should not worry at all if you have code 151 on your transcript. IMPORTANT: If you receive a notice that the IRS needs more information to process your amended tax return, send that information to the address on the notice within the time given to help speed up the processing. If you have received an unexpected Tax Topic 151 notice from the IRS and feel unsure about how to move forward, a tax professional such as the licensed CPAs, tax attorneys, and IRS enrolled agents atIdeal Taxcan offer you guidance on how to approach a tax solution. AZ Index of U.S. Government Departments and Agencies, Who Will Regulate the Regulators? What does tax topic 151 reference #1242 mean? It simply means your return is being processed and has yet to be approved or rejected. Or,it may decide to pursue a third option: an IRS payment plan. Which Account Fits You Best? You may need to enlist the help of a debt counselor or a financial advisor. due to stimulus payments) which may result in your refund being less than you expected. This means the IRS believes that you owe some debt . Youve crunched all the numbers, followed all the steps, and answered all the questions. The code or tax topic indeed indicates that you should take action, but that should not be a bother. But knowing you can appeal if theres an error is good news. I agree to receive approximately 10 messages every month and understand message & data rates may apply. Getting on a payment plan will not only help you access your tax refund, but it will also help you begin to pay back your tax debt burden. Tax Topic 152 is an IRS reference code that some taxpayers may see when checking the status of their refund using the IRS' 'Where's My Refund?' tool. You may represent yourself or have an attorney, accountant, or other individual authorized to practice before the IRS represent you. If youre required to submit a written protest, the IRS will explain how long you have to do so. The second letter will also include instructions on how to file an appeal. Since the economy has been in a nosedive since then, its safe to say that even more Americans have fallen behind. Tax Topic 152 doesn't demand further actions from the taxpayer, unlike other codes that a taxpayer could run upon. Should You Use a HELOC to Pay Off Credit Card Debt? Do you have more questions about your Tax Topic 151 letter? This right, along with the next steps to take to appeal, should be outlined in your IRS letter. Whether you opt to appeal the IRS offset or you want to resolve the debt with the entity you owe, its in your best interests to talk to a tax specialist about how to move forward. 23.07.2022. Receiving a Tax Topic 151 letter is one of those consequences. The use of tax havens is primarily by wealthy individuals and big corporations as a way to decrease their tax burden in their home country, while tax shelters are lawful methods that utilize investment options to decrease tax liability. See If You Qualify For an IRS Hardship Program. E-mail: [emailprotected], A clearly written statement of your intentions to appeal, A copy of the Tax Topic 151 letter you received, An explanation of the sections you believe are erroneous, along with evidence of why you believe this, References to any tax law you are citing in your argument. In the second letter, youll learn whether the IRS has decided to continue pursuing this classification, or if its decided to drop it after investigating your tax account more closely. These professionals are used to handling cases like yours and can advise you on how to proceed. While some legal settlements can be excluded, either in full or partially, the vast majority of legal settlements will be considered to be taxable income. This blog does not provide legal, financial, accounting, or tax advice. It tells you why your tax refund is being reduced or withheld. Tax topic 151 is sometimes referred to as IRS code 151 or tax code 151. What is included in a tax topic 151 letter? The IRS will be sending you a letter about this. You can also file an appeal with the U.S. District Court, Federal Claims Court or U.S. Tax Court. Disclaimer : The views expressed in the forum are the views of the user writing the post, and not that of moneycontrol.com.You agree, by accessing this forum, that moneycontrol.com bears no liability for any posts on this forum or, any losses suffered by following any advice posted on this forum.moneycontrol.com operates this real time, open, unmoderated, private forum for users to exchange . Appeals strives to resolve tax disputes in a fair way and remain impartial to both parties. This preview shows page 42 - 44 out of 89 pages. In many cases, this process is enough to help you settle your dispute out of court. You will get a tax topic 151 notice in the mail, explaining why this step was taken. Your refunds could be reduced or withheld completely due to: A notice to offset your refund is certainly bad news but it also means that the IRS has processed your return and your adjusted refund could be on its way. If you win, you'll get the amount paid back to you. You can also hire a tax professional to help you decide if a written or court appeal is best and how to move forward with your response. A nationally recognized speaker and educator, Dave is well known for his high energy and dynamic presentation style. TaxAudit deals with the IRS and state taxing authorities, so taxpaying individuals and small businesses dont have to. The IRS can go back through three years worth of returns, or up to six years if they find a serious error. U.S. Tax Court: This court is reserved for taxpayer disputes regarding estate state, gift tax and federal income tax. If you are concerned about the status of your tax return, you can follow these steps to contact the IRS about your return: Call the IRS at this number: 800-829-0582 (IRS phone support) Press 1 for English, then enter extension 652. Most Common Mistakes When Filing Your Taxes, Best Tax Relief Companies with a Money-Back Guarantee, Best Tax Relief Companies with Lowest Fees, Best Tax Relief Companies with Tax Attorneys On Staff, Getting Out of Tax Debt: Strategies and Solutions. Product name, logo, brands, and other trademarks featured or referred to within Banks.com are the property of their respective trademark holders. The IRS will send you a letter providing details of the offset and adjustments to your tax returns. That IRS tax code only means your tax return is being processed. One of the more common questions refers to Topic 152, and this simply means that you are going to get a refund. You can pay the IRS directly or hire a tax professional to assist you with resolving your unpaid debts owed to the government. Recommended: Is health information technician a good career? If you do get an IRS 151 letter in the mail, you need to understand what it is and what it means for your future. Dave is an Enrolled Agent who has prepared thousands of returns during his career and has trained and mentored hundreds of tax professionals. The second letter will detail the following: You can respond to the tax refund offset in two ways. SuperMoney.com is an independent, advertising-supported service. If the IRS decides to continue with the classification, youll get a more detailed explanation that clearly outlines whyits made this decision. The bad part is , it will put a delay on our refunds. Tax topics are based on IRS tax system codes related to the processing and reporting of individual and business tax returns. Top 3 Small Business Accounting Challenges (And How To Tackle Them), TheIRS is reducing the amount of your tax return, TheIRS is withholding your tax return in its entirety, You havent paid all of your child support payments, You took out federal student loans and defaulted on the payments, How to set up a meeting with a dedicated Appeals Officer or Settlement Officer, Your full contact information (name, address, phone number), A copy of the IRS letter detailing the Section 151 classification youre protesting, A statement that you intend to appeal the IRS claim to the Appeals Office, A statement detailing the tax periods/years that apply to your appeal, A detailed list of the IRS declarations you disagree with, and an explanation of why you disagree. In this notification, the agency will list all of the documentation and information it needs from youto finish processing your return. AskAbout.video/articles/Is-Tax-Topic-151-bad-202754----------Our mission is informing people correctly. What does this notice mean and how should you proceed? The IRS will send you a report and/or letter that will explain the proposed adjustments or . Your best bet it to wait until the IRS contacts you via letter which can take up to or more than 4 weeks for you to receive it. Installment Agreements & IRS Payment Plans. Many Americans rely on their tax refunds to make ends meet, and an unexpected Tax Topic 151 notification can be quite financially unsettling. Identifying this information is crucial. If you've recently received this notification in the mail, there's a chance that your taxes will end up getting offset. Federal income tax excepted on jan. 30, it has been 17 days and still processing, but it says i should have a refund in 21days, but i don`t even have; I want to know if i will receive my tax refund after a tax topic 151 review code 1242? Tax Topic 151 means that you're getting a tax offset (less of or no refund), which is where the Department of Treasury will be taking your refund to pay for something that has been reported that you owe. 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. 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. If so, then youre likely feeling pretty confused. Appeals strive to resolve tax disputes in a fair way and remain impartial to both parties. If the remarks are valid and youdo owe money, then take steps to pay off those tax debts and restore your account. He is a member of the National Association of Tax Professionals, the National Association of Enrolled Agents and the California Society of Enrolled Agents. Income is tax-free or nontaxable when the income earned is not subject to tax. What Happens if You Dont Pay California Franchise Tax? Deductibly Yours, 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. In other cases, it may still be a good idea. It's nothing to worry about and does not require you to pursue any additional steps. In addition to publishing a tax topic on the subject of delayed returns, the "Where's My Refund" tool allows filers to check the status of their refund, as little as 24 hours after filing their return. Dont Pay California Franchise tax required on your part case request, fill out Form 12203, this. Resolving your unpaid debts owed to the Government of a debt counselor or a financial advisor Regulators. Well known for his high energy and dynamic presentation style youre likely feeling pretty confused some.! 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