June 5, 2021
IRS Reference Code 1541
You can check the status of your return and your refund check (for paper returns) or direct deposit (for electronic returns) at the IRS.gov website. The “Where’s My Refund?” portal provides an estimate of when you should expect your refund and any status using a reference code.
See a quick reference guide in plain language to the reference code below
Where’s My Refund?
The IRS established the “Where’s My Refund?” portal to allow taxpayers to check the status of their federal income tax return and refund. To retrieve information from the portal you need three pieces of information: your Social Security Number or Taxpayer Identification Number (TIN), your filing status and amount of the refund that you are expecting. This refund amount should be listed in whole dollars and must match the amount listed on your tax forms exactly.
Taxpayer Identification Number (SSN or TIN)
Most taxpayers include a Social Security number on their tax returns. But certain taxpayers, such as resident and nonresident aliens, are not eligible to get one. The Taxpayer Identification Number (TIN) is designed to allow individuals to file federal and state income tax returns, without an SSN.
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When is IRS Where’s My Refund Available?
IRS Where’s My Refund? is available almost all of the time. However, the IRS system is not available every Monday, early, from 12:00 am (Midnight) to 3:00 am Eastern Time.
The IRS Change of Address and Refund Trace features are not available during the following times (Eastern Time):
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Sunday |
12:00 am (Midnight) to 7:00 pm |
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Monday |
12:00 am (Midnight) to 6:00 am |
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Tuesday |
3:30 am to 6:00 am |
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Wednesday |
3:30 am to 6:00 am |
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Thursday |
3:30 am to 6:00 am |
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Friday |
3:30 am to 6:00 am |
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Saturday |
3:30 am to 6:00 am |
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and 9:00 pm to Midnight |
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Also, occasionally the IRS system may be unavailable on Sundays between 1:00 am and 7:00 am Eastern Time.
IRS Reference Code 1541
In most instances, when you check the status of your return on the “Where’s My Refund?” portal, you will receive a message stating that your return is being processed or that your refund is on its way. Occasionally, you may receive one or more error codes, including 1541 Offset Overflow freeze set when offset storage within IDRS is not large enough to hold all generated transactions, or credit balance has been completely offset and two or more debit modules still exist IRM 21.5.6.4.5, C- Freeze
What does this mean in plain language?
IRS uses code 1541 to indicate that a portion of your refund has been taken due to the Treasury Offset Program. Treasury Offset Program is a centralized offset program, administered by the Financial Management Service's (FMS) Debt Management Services (DMS), to collect delinquent debts owed to federal agencies and states (including past-due child support), in accordance with 26 U.S.C.
What to do next?
Determine if you have any debt that would be subject to a Treasury Offset. If you do owe a debt and your know which agency created the offset, you will likely want to make arrangement with that federal or state agency to make a payment arrangement. If you do not know which federal or state agency(s) created the offset, you will want to contact the IRS or seek representation.
PATH Act Refunds
According to the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) Section 201(b) which is codified at IRC 6402 (m), the IRS cannot issue refunds, including applying credit elects, before 15th day of the second month following the close of the taxable year (February 15 for fiscal year filers) for tax returns that claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). This applies to the entire refund, even the portion not associated with these credits. Taxpayers should not expect their refund to arrive in their bank accounts or debit cards until the week of February 27 or later, if there are no other processing issues.
For taxpayers who meet PATH Act criteria, the following message is provided on the automated systems through February 15th. “According to the Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue these refunds before mid-February for tax returns that claim the Earned Income Tax Credit or the Additional Child Tax Credit. This applies to the entire refund, even the portion not associated with these credits. Check Where's My Refund in mid- to late February for your personalized refund status. It's updated once a day and remains the best way to check the status of your refund.”
Accounts meeting the PATH Act Section 201 criteria will have a C- freeze generated on the account and will carry an Indicator of 1, 2, or 8. See IRM 21.5.6.4.5, C- Freeze, for additional information on PATH Act freeze. To identify PATH Act Section 201 returns, the following indicators will appear on IMFOLT under the new “FEB15 RFND FRZ” field:
Indicator 0: No Freeze (Return did not claim EITC or ACTC)
Indicator 1: Refund Frozen (Return filed before February 15th, claiming EITC and/or ACTC. Prevents offsets)
Indicator 2: Historical setting (Set after February 15th to signify a return that had the indicator 1 set previously and is now after February 15th and Freeze was released)
Indicator 8: IMF internal setting to indicate freeze occurred in the current cycle
Exception:
The C- freeze code (shows Path Indicator of “1”) is set to be released on February 15th, however, this is contingent on Daily or Weekly processing of the account, therefore, the release may occur after February 15th. Once the freeze is released, the account will reflect a Path Indicator of “2”. See IRM 3.11.10.3.1, CADE 2/ IMF Daily Processing, for information on daily and weekly processing.
Caution:
Fiscal year accounts meeting the PATH Act Section 201 criteria can be identified with a TC 971 AC 134 with the MISC field “IVO REVIEW”. These accounts will not show a C-freeze. DO NOT release the refund if the indicator is present. Conduct thorough research prior to taking any action on the account.
Beginning January 1, 2017, accounts with a C- freeze in which the original or amended tax return includes EITC and/or ACTC, will not be considered for TAS referral when the request is for the refund to be released prior toFebruary 15th (15th day of the second month for fiscal year filers). These returns will only qualify for TAS criteria listed in IRM 13.1.7.2, TAS Case Criteria, when the qualifying criteria is unrelated to releasing the refund prior to February 15th. As a result, accounts with refunds that include EITC and/or ACTC referred and resolved by TAS will not be released until February 15th or later if there are processing issues. As of January 1, 2017, the IRS is restricted from releasing refunds that include EITC and/or ACTC until February 15, for current year tax returns that include EITC and/or ACTC, and
Cannot perform a partial refund release such as the non-EITC or non-ACTC portions or withholding
Cannot initiate an early refund release because filtering and income match is not completed prior to February 15
Cannot prepare a manual or expedited refund for an exception process such as economic hardship
Cannot perform a refund offset to pay for other IRS tax debt on another module or account
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