What Does Code 1201 Mean for IRS Tax Returns?

Purpose

There are several four digit IRS code groups which have corresponding IRS definitions. These codes provide IRS customer service agents with reasons for delays in the processing of income tax returns. For example, code 1061 indicates that a delay in processing was caused by an offset issued by Financial Management Services, while code 1441 indicates that the refund is delayed because the taxpayer is currently undergoing a bankruptcy filing. Code 1201 is a catch all, meaning that it is the code used when an IRS refund delay does not match any of the other code criteria.

If either the "Where's My Refund" link or the refund hotline provides you with code 1201, call the IRS at 800-829-1040 to determine the exact cause of your delay. The IRS customer service representative will review your account to determine the issue surrounding the delay and attempt to resolve the matter. If the representative cannot resolve the problem over the phone, he may send a referral to the campus where your return is being processed requesting a thorough explanation for the delay. It is also a good idea to check your email to make sure that your original return wasn't rejected by the IRS. Common mistakes, such as inputting the wrong Social Security number or date of birth, can cause your return to be rejected by the IRS. If the return is rejected, the IRS or your online tax preparation software company sends you an email. Check your spam folder to make sure you haven't received a rejection notice.

You should continue to log on to the IRS "Where's My Refund" page or call the refund hotline at 800-829-1954 to check the status of your return. Often, these problems are resolved at the processing centers where they originated and there is no need for additional action.

If have spoken with the IRS and continue to have difficulties resolving the delay, contact the Taxpayer Advocate Service at 877-777-4778. Taxpayer Advocate Service works as a liaison between you and the IRS in resolving your refund delay.