IRS 1121 error delays refunds for some taxpayers


Answers are part of the problem. The taxpayers say they filed early and got a confirmation of a refund then days later an error notice. Those taxpayers say calls to the IRS didn't seem to help clear up the confusion.

Jonathan Walls could not wait to get his refund from the IRS so he filed his return back in January and days later learned his money was on the way.

"Direct deposit on the 6th, your taxes should be deposited on or around the 6th," said Walls.

Walls says on February 7 the funds had were not in his account, so he checked back with the IRS refund tracker.

"It said, 'Take action immediately, you have a code of 1121,'" Walls read.

Walls says the IRS told him the return was pulled for an audit, but then another IRS worker told him the agency did not know why the 1121 message appeared. One thing was certain, Walls' refund was now on hold and he's not alone.

"Everyone is getting basically different answers," said Walls.

We contacted the IRS about the 1121 code and the agency told us, "As part of our effort to prevent improper payments some tax returns take longer to process than others for many reasons, such as when a return includes errors, is incomplete, or needs further review. We apologize for any confusion or inconvenience."

Houston CPA Bob Martin says the 1121 error is not uncommon.

"It's usually a processing error code, which means there is a problem with processing at the IRS, generally it is internal where the IRS is working on a problem," Martin said.

The good news, no audit, but the bad news those with an 1121 code are going to have to wait several weeks or even months before their refunds are finally deposited.

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