Tax QuestionsCategory: IRS Reference CodesWhat does IRS Reference Code 1541 mean?
Veronika Greenwell asked 2 years ago

What does IRS Reference Code 1541 mean?

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1 Answers
TaxMax answered 2 years ago

IRS Reference Code 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 IRS Reference Code 1541 mean?

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 if you see IRS Reference Code 1541?

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 arrangements 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.

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