While waiting for your tax refund, you may have seen a message that says Tax Topic 152, which appears on the IRS website when someone uses the tool name “Where’s My Refund?” This serves as a reference code word that provides an update on taxpayer refund status and details about any delay. It is important to understand tax topic 152, what it means, how it is being used, and how one can resolve any issues that may come with it. Not only this but also how to avoid tax topic 152 for fast-track tax filing and refund process. 

Understanding of Tax Topic 152

When you file your state or federal tax return, the IRS has implemented a specific process by which they process, review, and validate the information that taxpayers have submitted on their tax returns before they issue a tax refund. Tax topic 152 is a generic reference term representing that the IRS has received your tax return; initial processing of your application is done and their agent is reviewing your return further in detail to make sure nothing is missing or wrong in your submission. 

However, this long processing doesn’t mean that your return has issues and your refund is delayed. Tax topic 152 only represents the fact that the IRS is still working on processing your refund. There could be various reasons that lead to this message, like more time is needed to verify your information, deductions, or credits. It can also represent that the IRS is lagging in processing hundreds of tax returns, especially in tax season when they receive a huge number of applications and can’t manage them at once. 

Step-by-Step Guide to IRS Refund Processing

The refund process of the IRS consists of many stages. Having an understanding of all of these key stages will guide you on how you can track your application status as well as guide you about any delay that can be encountered during this processing. 

1. File Your Tax Return

The first and foremost step of this would be the submission of a tax return. There are two ways to do that: one is e-filing, which is, in other words, electronic filing, and the second is paper filing, in which you can submit the tax return forms to the IRS via mail. E-filing is a more favorable and faster method that also reduces errors. 

2. First Processing Stage

After the submission of your tax return, in the case   of e-file, the IRS will acknowledge the application upon successfully receiving it, whereas for paper file, the IRS will manually start processing your tax return. In both filing methods, the IRS will be processing all the basic information like SSN, filing status, income, and validation of the information on the return. 

3. Review and Validation

Once the initial processing stage is done, IRS agents review the return information further in detail .In this stage  they cover all the aspects of the return from deductions, credits, and any other claim. Not only this, but in this stage they review and verify the information against their database to make sure everything that is mentioned on the return is accurate. This process is time-consuming, especially in case the return has any wrong or misleading information on it. 

4. Tax Topic 152 processing Status 

In case of further examination, you’ll see the reference of code of tax topic 152,represents that IRS is still processing your refund and there may be need of additional documentation or verification needed from your side. Keep checking the status proactively and be ready to provide any information or verification that IRS need to process your return. But keep in mind the tax topic 152 doesnt always mean that something is wrong and IRS need further information in some case it means that IRS is facing delays in processing as they are so over loaded with the tax returns. The best strategy is to stay active and check your status from time to time. 

Key Reasons for Refund Delays Under Tax Topic 152

If you face delays in your tax refund, there could be multiple reasons for that delay. Let’s go over the key elements that can contribute to this delay. Once you understand the reasons, you will be able to resolve them and also be able to avoid them in the future. 

Incorrect or Incomplete information

One of the most common reasons for delays is the wrong or missing information on your tax return. Taxpayers may have missing forms, incorrect personal or income information or the information is not consistent throughout the tax return. In such cases, the IRS needs time to process and verify your information before proceeding to your tax refund. 

Additional Verification Requirements

In the process of additional verification, they may request more documentation to verify the claims or the information that you have given on your tax return. For example, in the case of deductions or claims, the IRS needs documents like receipts, W-2 forms, or Form 1099. In case the taxpayer is unable to provide the IRS with required documentation, it will cause a delay in the process of the refund. 

System Backlogs in Processing

In tax season, from January to April, the IRS receives a great number of tax returns. During this time, delays in processing of refunds are common as there is a lot for IRS agents to process. So during tax season, facing a delay is not something one should worry about. 

What to Expect When the IRS Updates Your Refund Status

Once the IRS starts processing your refund. You will receive updates regarding it from time to time. Following is the information  status that you will receive:

• Refund Approved: This shows that your refund has been reviewed and approved as well as ready to issue.
• Refund Sent: IRS has forwarded your refund via direct deposit or mail as per your selected choice. 
• Further Review Required: This status represents that the IRS needs  additional information or verification and your refund is still in process. 

Conclusion

Tax topic 152 is crucial to understand in order to be aware of the IRS refund process; this blog gives the detailed information on what tax topic 152 is and how it can impact your refund process as well as how taxpayers can avoid landing into tax topic 152 by making sure their tax return is accurate and compliant with IRS requirements. The primary element is that getting help from tax professional, for get in touch with a well-reputed name in Tampa, Florida, is SK Financial CPA. They offer tax services for both individuals and businesses, and from tax filing to tax planning and tax assistance, they cover all the aspects that one needs.