Key Takeaways
- Reference Number 1242 means your return is frozen and under review - not automatically an audit.
- It's often paired with Tax Topic 151, which explains your appeal rights around any proposed adjustment.
- Check your transcript for Code 420 specifically if you want to confirm whether an actual audit is underway.
- Reviews tied to Code 1242 can take up to 120 days, longer if you file an appeal or the case is complex.
- Respond promptly to any formal notice (like a CP05) - delayed responses are the biggest driver of extended wait times.
After submitting your tax return, you may see a message referencing code 1242 and Tax Topic 151 when you check your IRS refund status.
Naturally, this can cause stress and worry about what happens next. Here’s what it means, next steps, and the expected timeline.
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What Does Reference Number 1242 Mean for My Refund?
Reference number codes are how IRS systems classify informational or processing actions, much like tax transcript codes.
According to the IRS manual, Code 1242 means your return was received but is frozen (from any further action) and under review. This can feel alarming, but don’t panic — the IRS routinely reviews returns for errors and potential fraud, and most cases resolve without escalating further.
You can contact IRS customer service to discuss this, though you’re unlikely to get much new information beyond what the reference code already tells you.
There’s not much you can do at this stage beyond waiting for a formal notice — normally a CP05 Letter verifying some of the information on your return.
Your filing is under review and in queue for further action. The level of review (or audit) determines next steps and how long you’ll wait.
How Can I Get More Information?
Review the Tax Topic 151 reference in your status message — this confirms the IRS’s next processing stage and your options to appeal any proposed adjustments or collection action.
In some cases you may need to visit a local taxpayer office to verify your identity, or go through a more detailed in-person audit.
Check your IRS tax transcript for more detail and other codes — for example, transcript code 420 confirms you’re facing an actual audit, versus 1242 alone, which just means your return is under review.
How Long Will It Take?
Once you see this message, it can take several weeks (up to 120 days) for the IRS to respond and complete the review. If your case is complex and you file an appeal, the whole process could take months.
During this time, the IRS may request more information via formal notices — respond to these promptly, since delays in your response directly extend the review timeline.
It’s been 10 months and haven’t got a letter called they tell me wait for a letter no new updates nothing. I have tax topic 151 reference 1242.
Its been 14 months and i haven’t received any notice from the irs requesting any additional information. If i didnt get any notices in the mail in 14 months is it safe too say that i should be receiving my return soon. Its been in review 14 months with no additional information requested. Whats going on? Why has it taken so long when i havent received any additional requests.
Don’t feel bad I’m still waiting on my 2019,2020,2021 and 2022 refunds for this very thing. I call about once a week to insure and I’m told the same thing give us another 180 days were backed up. 3 years without a refund and I’ve provided all documents that were ask for.
Going on 3 years still waiting, went down town all paper work they wanted. Call back if you don’t get letter .wait 9 weeks ,every 9 weeks called them same routine