Filling out your tax forms each year might seem like a chore, but the alternative is worse. The IRS requires you to file and pay taxes on all of the money you earn during the year. This filing requirement doesn't automatically mean your return is accepted and processed, however. The IRS has various codes when tax returns are flagged. Once of those codes is code 1262.
The IRS uses error codes to denote problems with taxpayer filings. These error codes alert you and IRS agents that a tax return needs additional attention before it is processed. The 1262 error code means that an electronic tax return was received over three weeks ago but that it is being held for review.
The IRS will not process your tax return as long as the code is there and there is no action being taken. The IRS needs additional information, which it will collect. You may be contacted by an IRS agent or asked to provide additional information about your tax return. This information is necessary to process your return.
If you've made an error on your tax return, you may be audited by the IRS. This will consist of the IRS conducting a thorough investigation of all elements of your tax return. If you're a business owner, the IRS will request copies of various business documents, and will want to check all deductions you've claimed. For individuals, the IRS will still check all elements of your return. Any tax deductions you claim are verified by an agent. Additionally, you will not receive a refund during this time. You may also be asked to refile your tax return if an error is found.
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Contact the IRS when you notice this code. If you are checking the status of your tax refund using the IRS's refund cycle chart you may find that this code has been issued for your return. If you inquire about your refund status, and you do find this code has been issued, you should find out if there is any information necessary to complete your return and issue your refund. While you can wait for the IRS, it may be beneficial for you to initiate contact. This is especially true if you do not think that there is any error on your tax return.