stmAre you searching online for Tax Topic 151 meaning? This page features everything you need to know about IRS Tax Topic 151.
It’s a normal thing to eagerly expect your tax refund after doing your tax filing. Common activities that surround this expectation perhaps for many is checking mailbox from time to time and checking the IRS website daily for tax refund status.
However, instead of a refund, you may get hit with an IRS code which does not indicate deposit of the refund. That is not a good news, but it may not be a bad news either.
It depends on the meaning of the IRS code you got. 171 will mean that your refund is still under processing, 149 signifies a rejection of your refund. 161 indicates that refund has already been mailed to the recipient.
How about if you got hit with 151 on your tax transcript? Let’s find out what it means.
What Does Tax Topic 151 Mean?
At the sight of IRS code 151 on their transcript, or the IRS “Where is My Refund” tool, people tend to panic a lot, for the years 2020 and 2021 especially. But should that really be the case? No, it should not be actually. Even though this code indicates that you should take action, you still should not be bothered. You will soon find out as we explain going forward.
If you get Tax Topic 151, it is an indication that your refund is undergoing a review and your refund may be less than you expected when it arrives, most likely as a result of tax offset.
Tax Topic 151 Refund Information
The IRS will send you an official letter in 4 weeks’ time or possibly longer containing detailed instructions and information about additional documentations and information needed from you to complete your refund processing.
The letter will also give you update on whether they plan to drop the Tax 151 classification or they plan to continue with it. The letter will also contain information about steps already taken by the IRS or the steps about to be taken.
It will also table the options at your disposal, which may include; your appeal rights information, your appeal filing instructions, and explanation of how you can set up a meeting with a settlement or an Appeal officer.
If you disagree with the tax Topic 151 classification, you can appeal in a cost effective way by taking it up directly with the IRS.
This informal administrative process is a method the IRS encourages so as to save expensive trial cost. An agent not related to the IRS which revolves tax controversies, The Independent Office of Appeals is where you will make your case, and they are sure to deliver an impartial judgment as they will consider both the perspective of the taxpayer and the IRS.
Alternatively, you may request for an appeals conference, where you will present proper documentations and records in support of your position.
However, if you are aware already of the debt(s) which prompted the tax Topic 151 classification, it will be a good thing to seek professional help and pay the debts as fast as possible.
Tax Topic 151 Good or Bad
Tax topic 151 may not necessarily be the good news expected in your tax refund, but it’s not really too bad either.
Tax Topic 151 No Bars 2023
You may have experienced your status bar disappearing on the Where’s my Refund site. It’s due to lagging and too much traffic. It does not mean you at flagged. May also be due to your browser settings too. Make sure the browser is set in the right order. And clear your caches.
Final Words
I hope you find this information on Tax Topic 151 Meaning useful. Also, make sure to share this piece to help others.
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