Reference Number 1242 — Guidance for Contacting an IRS Customer Service Representative

Reference number 1242, when quoted by an IRS customer service representative (CSR) or printed on IRS correspondence, functions as a case identifier that helps IRS staff locate the precise telephone log, account research, or correspondence packet associated with your inquiry. Treat the number as a portable index: it connects the CSR’s notes, any internal research memos, and the transcript of the call to your specific account or issue. Whether you received 1242 on a recorded phone call, at the bottom of a notice, or on an IRS document, it shortens CSR research time and reduces duplication of effort.

From a practical standpoint this reference number is useful in four ways: (1) it speeds repeat contacts by enabling a CSR to load prior notes immediately; (2) it establishes an internal audit trail for escalations or appeals; (3) it anchors any subsequent written or electronic submissions you make; and (4) it is what you should cite verbatim if you later open a Taxpayer Advocate Service case or send documents to an IRS address. Do not assume it replaces taxpayer identifiers — you must still provide SSN/EIN and other verifying data when requested.

What a CSR Usually Does When 1242 Is Present

When you call the IRS and refer to a CSR-provided reference number such as 1242, the representative will first pull up the call record and associated case file. That file typically contains the caller’s notes, the sequence of prior actions (for example, “Form 15227 submitted,” “ID verification initiated,” or “transcript ordered”), and any internal routing codes. CSRs use that reference to check whether returns, notices (e.g., CP2000 or CP11), payments, or identity verification steps have already been performed.

On receipt of 1242 the CSR will usually read aloud the last recorded action and the “next step” assigned by prior staff: make an account adjustment, schedule an IRS Collections call, issue an account transcript, or request documentation for identity verification. Ask the CSR to state the open action, the assigned employee ID extension, and the date by which the CSR expects resolution; insist they add any new notes to the same reference number to keep the audit trail intact.

When You Receive Reference Number 1242 — Common Triggers

Taxpayers typically see or hear a reference number like 1242 after one of these events: (a) a phone inquiry where the CSR documents research steps, (b) a manual case opened for collection or account reconciliation, or (c) an identity verification sequence triggered by suspicious activity. It also appears on follow-up letters or as a confirmation code after an IRS practitioner-assisted call. If the number was given during a tax-season call, it often relates to a specific tax year (e.g., 2022 or 2023) and a specific form or notice referenced on the call.

If you are uncertain why you were given 1242, call back and ask for the CSR’s notes associated with that number. Request the timestamp (date/time) of the creation of the reference, the CSR’s badge or employee ID, and the “next action” field. These data points are invaluable if you later need an appeal or if you file Form 911 for assistance from the Taxpayer Advocate Service.

How to Use Reference Number 1242 Effectively — Preparation and Script

Before calling the IRS, assemble and organize everything that a CSR will want to see. Reference number alone will not satisfy identity verification requirements; the CSR will request your Social Security number (SSN) or Employer Identification Number (EIN), tax year, payment amounts, and relevant notice numbers (for example, CP14, CP2000). Being organized reduces hold time, minimizes callbacks, and preserves the integrity of the 1242 case record.

• Documents to have on hand when you call: your SSN or EIN, a copy of the notice (if any) with its notice code and date, tax year(s) involved, exact payment amounts and dates (including EFTPS/Direct Pay transaction IDs if relevant), bank account last 4 digits used for payments, copies of filed Form 1040/1120 or amended returns, prior correspondence showing reference 1242, and your contact information (address, daytime phone, and email).

On the Call — Exact Phrases and Questions to Use

When you reach a CSR, state the reference number clearly: “I am calling about reference number 1242, created on [date] during a call with CSR [employee ID if you have it].” Ask the CSR to confirm the case creation timestamp and to summarize the last action taken. Request that they read the “next action” and add any new follow-up notes to the same reference number so subsequent callers and supervisors see the full history.

Ask specific timeline questions: “Under reference 1242, what is the target resolution date?” and “Has account research been escalated to Collections or Identity Verification?” If the CSR cannot provide a firm date, request a callback appointment window and obtain the CSR’s name and badge number. If a supervisor is needed, ask for escalation to “Tier 2” or to the specialist group specified by the CSR (e.g., Accounts Management, Collections Field Office, or Identity Protection Specialized Unit).

Documentation, Submissions, and Retention Best Practices

If a CSR instructs you to mail or fax documentation under reference 1242, follow these procedures: send physical copies to the address the CSR provides — do not rely on a generic headquarters address unless instructed. If the CSR allows fax or secure upload, confirm the fax number and upload URL, and request a confirmation number for receipt. Retain both a certified mail receipt (USPS Return Receipt) or a fax transmission report, and scan all materials to your records with the reference number clearly marked in the file name and on each page.

Keep a single chronological file (digital and physical) for reference number 1242. Label correspondence with date/time, CSR name/ID, and short description of the action (e.g., “3/12/2024: ID verification requested; requested documents: Form 8821, passport copy”). This single-file approach reduces the risk of missing deadlines and provides an organized packet should you need to engage a tax professional or the Taxpayer Advocate Service.

Timelines, Expected Outcomes, and When to Escalate

Resolution timelines depend on the issue severity. Routine account research or transcript requests under a reference number like 1242 are commonly completed in 30 days; identity verification cases can take 60–90 days, and collection or audit-related matters may extend to 120–180 days or longer. If a CSR sets a resolution date, add five business days to allow internal processing and mail delivery before you follow up.

Escalate if you experience the following: (1) missed promised resolution dates, (2) conflicting information across CSRs, (3) potential economic hardship or imminent levy, or (4) proven identity theft. For urgent escalation, ask for a supervisor during the call, or contact the Taxpayer Advocate Service at 1-877-777-4778. Keep citing reference number 1242 in every contact to preserve continuity and expedite supervisor review.

Contact Points, Addresses, and Online Resources

Primary IRS contact resources you should know: individual taxpayers generally call 1-800-829-1040 (Monday–Friday, hours vary seasonally); businesses call 1-800-829-4933. The IRS main website is www.irs.gov, where you can access transcripts, make payments, and find forms. For identity-protection issues, the IRS has an Identity Protection Specialized Unit; if instructed by a CSR, use the number provided on your notice. For persistent unresolved problems, the Taxpayer Advocate Service phone line is 1-877-777-4778 and their website is www.taxpayeradvocate.irs.gov.

If you must send physical documents, use the address the CSR provides. The IRS headquarters mailing address is 1111 Constitution Ave NW, Washington, DC 20224, but do not mail case-specific documents to HQ unless directed — many case types have unique processing centers with different P.O. boxes. Always confirm mailing instructions on the call and reference 1242 on the first page of all submissions.

What is the IRS code section 1242?

Reference 1242 may appear due to concerns about your income tax credit claims, inconsistencies with your bank accounts, or potential evidence of fraud. The IRS uses this code to flag returns for more detailed inspection, which may be part of an audit process or a procedural review under current tax codes.

What is the IRS reference code 1241?

IRS uses code 1241 to indicate that your return has been selected for review and will be frozen until the review process is complete.

What does reference number 1242 mean with the IRS?

your return has been selected for review
IRS Reference Number 1242 is a code the IRS uses to notify you that your return has been selected for review. Your return will remain frozen in the IRS’s system until the review process is complete. The selection process for code 1242 reviews is intended to be random.

How long can the IRS hold your refund for review?

If the IRS is reviewing your return, it may have questions about your wages and withholding, or credits or expenses shown on your tax return. The review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.

What does tax topic 151 and reference 1242 mean in TurboTax?

Often paired with Tax Topic 151, reference code 1242 means that the IRS has selected your return for further review. This code applies to returns that have been e-filed at least three weeks ago. The code indicates that the IRS has frozen your return for review, and the agency will send you a notice later.

Does tax topic 151 mean audit?

Understanding the Two IRS Letters
The first Tax Topic 151 letter is essentially a courtesy notification from the IRS. It serves as an initial alert that the IRS is in the process of reviewing your tax return. It’s important to note that this letter is not an audit notification.