The US has a very organized tax system, and the IRS is responsible for tax collection and tax refund. The primary body of federal statutory tax law is the internal revenue codes administered and managed by the IRS (Internal Revenue Service).
If you are a regular taxpayer, you must be aware of the various revenue codes used by the IRS to show your tax status. Sometimes, the taxpayers see the topic 152 while checking their refund status and wonder what does tax topic 152 means?
This article will walk you through all the necessary details about tax topic 152 and when it appears on your screens.
What Is Tax Topic 152?
Although most taxpayers get their refunds on time, there are times when your refund could be delayed, and the reason can be anything. Topic 152 is a reference code; it shows on your screen when you try to access the IRS refund “where’s my refund” tool, indicating a delay in your tax refund.
IRS has designed a set of codes to let people know about the current status of their tax returns. The tax topic 152 code is different from other IRS codes as it provides the user with direct information and doesn’t ask for additional steps.
Should I Get Worried After Seeing Tax Topic 152?
If you see tax topic 152 and get confused about what tax topic 152 means, there is nothing to worry about. It only tells about the delay in your refund. But, if the tax topic 152 changes into Topic 151, you should be concerned.
It indicates that the government holds your payment or refund for the audit, and they will deduct your tax to cover the money you owe to the government.
It can be anything, from unpaid insurance or child support fees to an incomplete scholarship. However, audits may seem scary, but there are many levels of an audit. Sometimes, the IRS audits your forms and verifies your return. They can give you the letter with errors to correct or send a payment request.
What Is The Primary Difference Between Tax Topic 152 & 151?
Regular taxpayers use the IRS2GO app to check the current status of their refund. If you open the app and it tells you to check tax topics 152 and 151, there can be some problem with your information or payment. Tax topic 151 can be a little upsetting as you will get an amount lesser than you expected. The IRS will send you a detailed letter explaining why they have deducted your payment.
Meanwhile, tax topic 152 is nothing serious as it simply says that you are facing a delay in your refund. You don’t have to follow any steps like in other codes. The delay may be due to some typos, or there can be a problem in the IRS system.
What Information Do I Need To Fill My Refund Form Accurately?
To avoid any delays or mistakes in your refund, you need to have all the below mentioned forms or information:
● You should have all the income-related forms to show your assets and their value etc.
● Forms showing your last year’s tax payment details and your official tax-paying identification number.
● All your personal information like Social Security Number, birth date, childcare cost, full name, and relevant information.
● Don’t forget to add your identity protection PIN issued by the IRS.
It is mandatory to have all these things before sitting to fill out your refunding details. A minor error in this information can result in your tax refund delays. Make sure you double-check everything after submitting the form. There are high chances that if you send the form through the mail, it will take longer than usual to refund your payment.
Why Is My Tax Refund Delayed?
When you see the tax topic 152 while getting information about your tax refund, it can be due to various reasons such as:
● If you make any typing mistakes like an error in entering your name or Social Security Number, then your tax refund will take longer than usual. Also, if you try to use someone else’s information to get the refund, your payment will be delayed or in process. This is considered wrong, and you can get charged for doing that.
● Tax refunding means you have to deal with a lot of mathematical calculations. You are not a mathematician, so there are chances that you may make some mistakes in the calculation, and the payment may get delayed.
● If you are sending your tax refund form through the mail and filling it on paper, there are high chances that you may enter the wrong information or get confused between various entries. This also complicates the IRS officers, and they separate your form among others for detailed checking. That’s another reason why your tax refund is still processing.
For years I have studied American finance regulations. All the information in this blog is sourced from official or contrasted sources from reliable sites.
Salesforce Certified SALES & SERVICE Cloud Consultant in February 2020, Salesforce Certified Administrator (ADM-201), and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.