ref code 1201 on irs

[jctwo]

Hello..I have been discharged on 01/20/2010 with an awaiting closure on Pacer Ch 7 no asset. I checked my status on the irs website and it said my return has been delayed with a ref code of 1201. Its probably the trustee taking some of it but am not sure. Can anyone help? THANKS!!!!!!!!

[JoeBankrupt33]

If this is an e-file reject code, this is what it means:

Form 8891 - Beneficiary Plan Status Box (SEQ 0130) and Annuitant Plan Status Box (SEQ 0140) cannot both equal “X”, and cannot both equal blank.

How did you file your taxes?

[jctwo]

Thanks for your help? I filed electronically and i just found out that my trustee is putting his hands in it. So we shall wait and see....my lawyer is AWSEOME and is on top of it.

[bktmom28]

Same thing happened to me yesterday! Really sucks! Apparently rather than wait for me to send her a check, my trustee sent a notice in to the IRS to send her the refund. My attorney was really surprised and hasn't had this happen before. I hope that this is something new that they are doing and not just randomly. It would have been nice to have known though. Even the man at the IRS was very apologetic because he said normally the trustees will let you know beforehand even though they aren't required to.

[BKDebby]

I originally had to send my tax return to my Trustee; she ended up not wanting it and emailed me to go ahead and file my taxes with the IRS, and if SHE accidentally received the refund check, she would send it on to me. She turned my Chapter 7 from an asset case to a "no asset" case and I was discharged.

So last week I checked my Where's My Refund? status on the IRS web site, and this reference number 1201 came up with a phone number to call. I called it and the man gave me the phone number for the Insolvency Dept.??? 1-800-913-9358. I called that number and the voice mail system will not even let me talk to a live person until my refund status is a minimum of 8 weeks past due.

So who knows when or if I will ever receive my refund.

[angles]

Don’t the Trustee's tell you if they want the refund or not? Ours looked at last year’s return but then moved on. Later on the attorney said that he thought the trustee would want our 2010 return but then decided to move on.

[angles]

now that i think about it, i believe our attorney said something about the trustee would have us sign a form if he wanted our 2010 taxes. anyone have any experience on this?

[gatekeeper]

Yes, this has happen to me as well. The trustee in my case has filed a form called 1041, which allows them to claim the refund directly from the IRS. The irs then will stop any further transaction, till the irs has determined as to who get s the refund you or the trustee. However, 99% of the time it goes directly to the trustee hands. The irs has stated that the refund check to the trustee may take up to 6 to 8 or more weeks to be sent out, depending on the irs workload of the irs processor agent. Some trustee will let you know, if they want your refund of not, however, once the trustee files the form 1041 "give me the refund form" you are sol, till the irs sends the refund to the trustee. Hopefully, once the trustee gets the refund, hopefully the trustee would give back your share at once, but again there may be delays as to you have to wait till each party receives their share of your refund and wait til each check clears before the trustee sends your share of the refund.

[angles]

Thanks gatekeeper for the response. how did you know the trustee filed the form? did you have to sign it or does he just send it in?

[gatekeeper]

The trustee files the form with the IRS, no signature is required on your part. The reason, I knew is because my friend who works for the IRS had advise me of that.

[angles]

thanks for the quick response. is there a way to check with the IRS to see if one was filed?

[gatekeeper]

Nope, not really. Another way is to call in at this number, 1-800-913-9358. It will ask you two question, push 1 if it been less then 8 weeks, push 2 if it been over 8 weeks. Besure to push the button that says it been over 8 weeks. A live irs processor will come on the phone and ask you for your information, and they should be able to tell you, if your refund is going to the trustee. I had called, they went ahead and pulled my file and submitted the paperwork to finish processing the refund check for my trustee.

[Snax]

Just for the record, a 1201 code does not automatically mean the Trustee has filed anything to claim your refund. It is apparently a general code for your refund being subject to review for collateral or adjustment on a debt claim. In our case, the 1201 code came up the day our refund was deposited in our account - less the tax debt we owed for 2008 and 2009. I believe it's just their way of flagging your refund as subject to withholding.

[missdooly]

We got the 1201 code too. I had called the trustee's office and the lady that monitor's our case there stated that we get to keep all of our refund since the case is based on salary. I thought that they all were based on salary. So confusing! I just hope that the trustee's office doesn't have a change of heart after telling me that they didn't want it. The weird thing is that after checking the status for my state, the check is scheduled to be mailed this week but I didn't owe the state from 2009, I only owed federal for 2009. So maybe it was for the adjustment on the 2009 federal claim. Fingers crossed.