what does refund delayed, irs ref # 1201 mean?

Question

i e-filed my return on 2-26-07, after a week irs website said i should get refund around 3-13-07. a few days after that it changed and is now saying delay in processing and gives ref.#1201. i lost my job of 16 yrs. last march, drew unemployment for a month then started cleaning homes in may. i filed married filling jointly, showed income from all sources, took deduction of using my car for cleaning jobs and took credit for my husbands 401k. i made est. tax pymts. for june, sept. & jan. so i wouldn't owe anything. help!

Answer 1

They are reviewing your return for errors or questionable items, It further information is needed they will send you a letter requesting that you submit the information. If the issue is minor they may make corrections and complete processing of your return

Answer 2

I can only speak from experience reading other forums about these crazy tax code delays.

1201 appears to be more of a payment processing delay. Most people who were a 1201 received their refunds a week or two later. Some were supposed to get deposits, but received paper checks instead. I have code 1121 which is a review delay. Most who were a 1121, changed to a 1201 and then received their refunds. I have also known several people who were a 1201, called the IRS and were given deposit dates. So you might want to call them!

Answer 3

I have to agree that it is case specific. I was suppose to get mine yesterday (3/20), but this weekend my file switched to a delay code 1201. I called and was informed that it was because I had a change in filing status. They were going to have to review my previous tax returns. The rep said it was going to be atleast 3 weeks before the funds were released. Today I called and it is now less than 2 weeks. I think they are just messed up. The gentleman today said the delay was because I was previously married and was now filing married joint. This came as news to me and my wife of seven years, given this is both of our first marriages. The guy then sounded dumbfounded.

Answer 4

1201 just means that there is a delay in processing. Call the IRS. I did because I received the same message at the "Where's My Refund" site.
It is interesting to note that my account still hasn't update with an expected refund date; however, I did receive my refund already.
I would call the IRS. They will just verify who you are and tell you your expected refund date.

Answer 5

I've seen many answers to questions about reference numbers for delayed returns. So far NO ONE has given a source for their answer and the IRS website search function does not return meaningful results for any of the numbers. Aside from calling the IRS, I wouldn't trust any answer your receive. That said, I noticed you said you took credit for your husbands 401(k). There are 2 reasons that is wrong. First, 401(k) contributions reduce your taxable income, and credits reduce your actual tax due. Second, 401(k) contributions are not included in you W-2 and therefore can't be deducted again on your tax return.

Rob: Your profile says you CLAIM the IRS toll free number as a source so people can verify your answers. Try it yourself once in a while. If you haven't called about a given question, the is not your source for the answer you gave.

Answer 6

I would have to agree with Rianna. Most people whos refund was delayed received code 1201 prior to receiving their deposit date or paper check

Answer 7

I think I know what my problem was I am a owner of a business and send in an W2 without sending in something to the SSA and social security and medical I am new to the business world
so they give me an 1121 maybe its a mistake on your return that you forgot and don't put in Something simple or not,I am still waiting to see what they are going to tell me