IRS Reference Code 1121 is a p-freeze which means your account has basically been frozen until further review.

Many taxpayers went thru this last year and never really got any answers from the IRS. If you call the IRS and ask them if your account is frozen,…they have to tell you yes or no. If it is a freeze, you can expect a very long wait. If you are experiencing a hardship due to the delay you can request a taxpayer advocate to assist you in getting your refund released. This is due to increased enforcement by the criminal investigations unit and technically they don’t have to give you a reason for the delay…1121 is a freeze for sure! To give you an idea of how long you can expect to wait…a taxpayer from last year filed in January and was due a refund on 1/28. The DDD showed up and then 24 hours after seeing a Direct Deposit Date the WMR tool displayed the 1121 Reference Code. They did not get any answers until they were referred to the taxpayer advocate. The Advocate had them send in proof of everything claimed on the tax return, this was in March. The investigator released it in April, everything was accurate and they finally received a refund in May. The reps are not equipped to really know the reason for the delay and you can expect odd answers depending on the day you call and who you speak to. The only way to know for sure is to ask if it is a p-freeze….if so then you need to gather your documents now because they will request them. I do tend to think this is a problem for early filers because it happened to multiple taxpayers last year who filed early. The best advice is to wait until the middle of February to file. Good luck….and please use the thread if you have 1121 to keep us updated!