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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6176
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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What is IRS reference number 1121?

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What is IRS reference number 1121? 
What does it mean?

Expert: Stephen G. replied 3 years ago.

Hi and thanks for using our service. I'll do my best to give you a complete and accurate answer. Please ask me to clarify anything you don't understand.

Did you receive a notice with that code? If so, what did the notice say?

Customer:

No notice. It shows when I check the status of my refund on the IRS site.

I had a direct deposit date and the day the refund was to be deposited it did not. I checked back there in a couple of days and there was a 1121

It means that your return is being reviewed at the first level of review; usually means comparing your return to employer payroll tax filings. Also, sometimes there’s an error in processing within the IRS and the code will indicate that you are going to get a paper check rather than a direct deposit.

Customer:

How long is that process, and why?

Stephen E. Grizey:

They have up to 7 weeks to "review" the return and then they either have to send you notice requesting additional information or process your refund.

Customer:

It’s been saying that for three weeks now.

My sister has been waiting since Feb. for her return. When she checked it, it says three to six weeks what is that about?

Stephen E. Grizey:

Unfortunately, you just got "lucky" and were drawn out the hat randomly for closer review; possibly a math error; nothing to be overly concerned about at this point; most just get tossed back into the processing system and go on through.

Customer:

What do you mean? Is that a bad or good thing? What do you mean most just get tossed back into the processing system and go on through? What can I do to prevent this in the future? What errors does the IRS look for in processing returns?

Stephen E. Grizey:

Well it is bad from your standpoint because you don't have your refund; it's good because it doesn't necessarily mean that there's a problem; just that your return was randomly selected to be reviewed manually; mostly it is just looked at & if nothing unusual it just gets reprocessed; if not, you'll get a notice; it just delays everything. There is nothing you can do about it.

Customer:

What errors does the IRS look for in processing returns?

Stephen E. Grizey:

The computers check all the math; doesn't mean they found an error.

Eventually all the 1099 data is compared between what they received from third parties & what's on your return, but that's not what this is about; if that were a problem, you would receive a notice & have the chance to resolve the difference; that comparison hasn't been done yet for 2011.

Customer:

What tax forms besides 1099 data is not compared between what they received from third parties and what’s on my return? Why can’t I file Form 8689 by e-file? When is the comparison done? That’s one of the forms I filed which was my 1099? So will I have to be prepared to send a copy in? Also can you tell me when it’s the best time or appropriate time to file my 1099-int and my 1099-div?

Stephen E. Grizey:

What do you mean you filed your 1099-DIV?

Customer:

Tax form 1099-div. e-filed.

Stephen E. Grizey:

You don't file 1099s with your return, so I don't understand what you mean?

Are you talking about a different subject now, other than your delayed refund?

Customer:

This was part of my tax return. So I wasn’t supposed to filed 1099-div? What was I to do with my 1099-div?

Stephen E. Grizey:

The information from your 1099s is entered on your tax return and the 1099s are kept in your own tax file.

The IRS gets the 1099s from the payers of the dividends, interest, etc. and compares it to your tax return entries.

Customer:

That’s what I did I enter the 1099-int and 1099-div on my return.

Stephen E. Grizey:

So what's your question?

Customer:

When is the appropriate time to report 1099s? beginning of the year, all year, or before the deadline?

What other forms beside 1099s are not compared with third parties.

Stephen E. Grizey:

What do you mean "report 1099s"?

Customer:

Enter on my tax return

Stephen E. Grizey:

You have done everything you need to do; the payers are supposed to furnish you a 1099 by January 31st of the year following the reporting year; often they come in late, which is why you need to know what is coming and not file your tax return until you have them all;

There are hundreds of third party reporting forms that are compared with tax returns; you can figure that pretty much everything of any consequence is reported to the IRS by someone and compared to your return. At this point there is nothing you can or should do except wait; keep checking the website to see if there's any change; hopefully, your refund will be released, sooner rather than later.

Stephen G. and other Tax Specialists are ready to help you

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