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of course...

March 2nd, 2011 at 05:42 pm

So, I was inspired to check the status of my almost $12,000 tax refund. The one I am counting on using to pay part of the downpayment for my house on closing day March 31.

It was on a lark. Tuyrbotax said my estimated pay date is March 4. But then I check on the IRS website and it said it is delayed, code 1201, and that I need to call and have my tax return ready.

So now I am scared. I do not need any more stress in my life right now. And, we have very simple taxes. Nothing really to screw up. It's kind of making me angry.

Is it because I have a large refund? I think I am extra inspired to change our withholding.

12 Responses to “of course...”

  1. MonkeyMama Says:

    The IRS like giving large refunds (interest-free loan to them). I can assure you that has nothing to do with it!

    Anyway, don't panic. Just call and see what is up. May be nothing.

    (I've honestly never come across this before - lucky you!)

  2. ThriftoRama Says:

    I remember it took longer than expected last year as well. I looked up the code on its web site and it just said it was the code for all other things that didn't have their own code. That was helpful, huh?

  3. ThriftoRama Says:

    After some research it appears as though it has been tapped for a random look over by one of the actual humans at the IRS, most people who have had this happen say it jut delayed refund and that is about it.

  4. marvholly Says:

    I got called MANY years (1983)ago for one of these TCMP (taxpayer compliance audit). I suspect it is due to your VERY high refund. It was on ours and also because we had several forms we had never filed before and it was the first time we used an accountant to do our taxes.

    Be prepared to document EVERY line of EVERY form submitted. We ended up fine, total cost was $500 to IRS and you don't want to know what the EA charged us for reviewing and going to the audit.

  5. MonkeyMama Says:

    I just have to say again, a large refund has NOTHING to do with it.

    I can assure you that 100%.

    Likewise, a delay or a question does NOT mean AUDIT. These are entirely different things. The IRS often asks for clarification for specific items. This has nothing to do with "audit." just clarifying misunderstandings, usually.

    Don't panic and don't listen to everyone else. Wink The IRS is not usually as scary as everyone else thinks. Let us know what they say and I can advise you if you need any help.

  6. MonkeyMama Says:

    P.S. Unless there is a really obvious error on your tax return, it usually takes the IRS one year to actually look at your tax return, and 2 years to choose it for audit.

  7. ThriftoRama Says:

    Thanks, Monkey. That helps. I am going to call this evening.

  8. ceejay74 Says:

    Hey Thrift, I was curious. Would this make you consider changing your withholdings/tax payments so you have that extra $1000 each month versus waiting for the IRS to give it back to you? Or was this an oddball year that you didn't know about until tax season was upon you?

    I know there are lots of reasons for keeping the large refund instead, but since you're so proactive with your money I've been wondering.

  9. ThriftoRama Says:

    Well, our refund has yo-yoed in years past, but it's been consistently high two years in a row. The changing factors were our self-employed income. Hubby and I both had full-time jobs and a lot of freelance income until 2009, when the recession hit. We also had two kids since then. Before all that, we used to owe raxes

    Our situation changed, but we didn't know exactly howit would impact what we owe, and we didn't want to end up owing a bunch of money. So, we never changed it.

    Now that our situation is stabilized, it's time to change the paycheck withholding so we will likely get a small refund, not a huge one. Hubby has yet to file his W-4, but I am going to twist his arm tonight!! No more waiting around to get my own money back!

  10. ThriftoRama Says:

    Well, our refund has yo-yoed in years past, but it's been consistently high two years in a row. The changing factors were our self-employed income. Hubby and I both had full-time jobs and a lot of freelance income until 2009, when the recession hit. We also had two kids since then. Before all that, we used to owe taxes

    Our situation changed, but we didn't know exactly how it would impact what we owe, and we didn't want to end up owing a bunch of money. So, we never changed it.

    Now that our situation is stabilized, it's time to change the paycheck withholding so we will likely get a small refund, not a huge one. Hubby has yet to file his W-4, but I am going to twist his arm tonight!! No more waiting around to get my own money back!

  11. SnoopyCool Says:

    I manage a retail tax office and I've seen code 1201 quite a bit lately... you are not alone. Did the IRS provide you with an estimated date of deposit? I really wouldn't worry about it for the time being. I do know that they pull about every 94th return for computer look-over (an audit, so to speak), they like to look at EIC (if you are receiving that). If you should receive a letter over the summer, or sometime down the road, just substantiate what's on your tax return. Like MonkeyMama said, they aren't that scary unless you're trying to defraud the government.

  12. patientsaver Says:

    I never heard of someone getting such a large refund before! That's great!

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