What Does IRS Reference Number 1242 Mean? Explanation and Next Steps

Learn what IRS reference number 1242 means, why your tax return may be flagged, and how to resolve it quickly with proper documentation.

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An IRS reference number 1242 indicates that your tax return has been flagged for a potential review or audit. This could be due to discrepancies, missing information, or unusual activity on your return. To resolve this, promptly provide any requested documentation and follow up with the IRS for more details if necessary. Ensuring your return is accurate and complete can expedite the resolution.

FAQs & Answers

  1. What causes the IRS to assign reference number 1242? IRS reference number 1242 is assigned when the IRS flags your tax return for potential review due to discrepancies, missing information, or unusual activity.
  2. How should I respond if I receive IRS reference number 1242? You should promptly provide any requested documentation to the IRS and follow up for further instructions to resolve the issue quickly.
  3. Does IRS reference number 1242 mean I am being audited? Not necessarily. It indicates a potential review or audit may occur, but providing accurate information can help resolve it without a full audit.

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