Understand what codes 151 and 152 mean for your tax refund status.
The Where’s My Refund Tool offers insight into the status of your tax return through a series of codes. Understanding what these codes mean can set your mind at ease if you are waiting for a tax refund. But some of the codes returned by the tool might be alarming.
For instance, taxpayers often panic when they see Error Code or Reference Number 9001. In reality, this code only means that you’ve entered the wrong taxpayer identification number or social security number to view the status of your tax refund.
You can easily fix this mistake by double-checking that the number you entered matches the number of the primary taxpayer on your tax return. Sometimes, people enter their spouse’s SSN instead, or even a number belonging to their child. It can be confusing to look up your tax return if you filed as married, filing jointly. Ensure you use the correct number.
On the other hand, Code 150 means your refund is being processed; that’s good news if you are eagerly awaiting your money.
Codes 151 and 152: Processing or Refund Delays
Other Where’s My Refund code that come up might be cause for alarm, or at least require some additional attention. For instance, IRS Code 151 and IRS Code 152 mean that your tax refund is being held up for some reason. The IRS should send a letter within four weeks to clarify the reason for the delay.
If you’ve been researching what various IRS tax codes mean, you might see people wondering if the presence of IRS code 151 in the Where’s My Refund tool means they are going to be audited. In some cases, a Code 151 could lead to a request for additional information about your tax return.
Your response might trigger an IRS audit if the IRS believes you’ve wrongfully claimed tax credits or failed to report earned income. If you aren’t sure how to respond, you should speak with a tax professional who may be able to help you provide the correct information. You can always file an amended return to reduce your tax liability if you realize you qualify for additional deductions.
But in most cases, IRS Code 151 does not indicate that you will be subject to an audit. merely means your return is held up and it might take longer to receive your refund than the usual processing times.
Let’s dive deeper into codes 151 and 152 to set your mind at ease regarding these tax topics when they appear as a response to your Where’s My Refund query.
Defining Tax Topic 151
The IRS will send a letter detailing Tax Topic 151 (TT151), if your tax refund is being held up for a variety of reasons. This code will also appear on your Where’s My Refund tool to let you know the status of your personal income tax return. You might receive Tax Code 151 for a variety of reasons. Here are some of the most common.
Your Refund is Offset by Past Due Debt
If you owe past-due child support, federal student loan payments that have not been forgiven, or state or federal taxes, the IRS may hold your refund until the agency reviews your account. At that time, your refund may be confiscated by the IRS, called a refund offset, to pay past due debt. Or, they may determine to release your refund to you.
The IRS often uses codes in conjunction with Code 151 to provide further details about your specific situation. If you see Tax Topic 151, Code 1262, 1241, or 1261, it means your refund was frozen for review. The latter two codes, 1241 and 1261, are used exclusively for taxpayers who filed paper returns.
Code 1341 indicates that your refund was frozen due to funds owed. You may receive a refund offset for child support, unemployment benefits that must be returned, or unpaid state income tax debt.
If you see 151 on “Where’s My Refund,” wait for a notice from the IRS detailing the reason your refund is delayed. This could take eight or nine weeks to receive the letter in the mail, so be sure to keep a close eye on your mailbox.
The IRS Needs More Information
If you see IRS Tax Topic 151, Code 1242 in the Where’s My Refund tool, the IRS may need more information regarding the Earned Income Tax Credit, Child Tax Credit, or other credits you claim. The IRS may need to see proof that you qualify for these credits. They might request birth certificates or adoption records of children.
If the wages you report do not match the information on the W-2 form you received from your employer and submitted with your tax returns, or if you failed to claim 1099 income as an independent contractor, the IRS may put a hold and review on your tax return before issuing your refund.
Your tax return may also be flagged for identity theft using Code151 and 1242. If you haven’t filed returns in several years, if duplicate returns were submitted using your unique Social Security Number or Taxpayer ID Number, or if the IRS has other reasons to suspect identify theft, it might put a hold on processing your refund.
Unfortunately, the Where’s My Refund tool does not indicate the reason for Code 151. You’ll need to wait for additional information from the IRS.
You may be asked to provide additional verification of your taxpayer status or eligibility for tax credits. This code also gives you the option to exercise your right to an appeal if you feel the IRS has wrongfully withheld your tax refund.
Tax Topic 152
After receiving Code 151 in “Where’s My Refund,” you might see that the code eventually shifts to Tax Topic 152. Tax Topic 152 means that the IRS has removed the freeze on processing your refund. However, it may take slightly longer than usual to receive your tax refund. Tax Topic 152 can also appear independently of TT 151. It simply means some factors have delayed the processing of your return, but it is now in progress.
Your refund may have seen delays due to the need for more documentation to prove eligibility of tax credits, especially the enhanced CTC or Earned Income Tax Credit (EITC). It may also be held up if you’ve made an injured spouse claim or other complex filing status that warrants additional verification. If you included an application for an ITIN with your return, this could also delay processing beyond the usual 21 days.
In some cases, you might receive TT 152 for identity verification.
If you see TT 152 when you check the Where’s My Refund Tool, it means good news – and your tax refund – should be on its way shortly.
If the IRS holds your refund more than 45 days, the government must pay interest on that money, which can give your refund check a slight boost.
What To Do If You See IRS Code 151 or 152 in Where’s My Refund
If you have past-due tax debt that is being paid through a refund offset on this year’s tax refunds, Alleviate Tax may be able to help. We can work to have the IRS waive penalties and interest to reduce your tax liability and negotiate a payment plan that may help you keep your tax refund.
FAQs
Does tax topic 151 mean no refund?
Tax Topic 151 may indicate a refund offset, which means that all or part of your federal tax refund is going to pay federal student loans in default, past-due child support, or state or federal tax debt owed. However, it could also mean that the IRS needs more information before processing your return.
Is tax topic 151 an audit?
Tax topic 151 does not indicate an audit. This code may show up in the Where’s My Refund tool if you owe past-due debts that will be paid using your tax refund. It may also show up if the IRS needs more information before processing your tax return.
How long can my tax refund be under review?
The IRS may take as long as 180 days to review your tax return before processing your refund. If 45 days pass before the agency determines that you qualify for a refund after review, the IRS will pay interest on your tax refund beginning at the 45-day mark.
