What Are The Different Types of Life Insurance? (Request for Appeals Review) and outline what you disagree with and why. A tax expert can help you determine the total amount you owe and make sure you dont leave any debt unsettled to cause future problems. Call this automated line to get offset details 18003043107 Dial 7 wait a second, then 1 wait a few more seconds and then 1. In the appeal application, you should write facts and figures to support your stance and fight back. If you have outstanding student or child support loans, the IRS will use your refund to pay off those debts. All rights reserved. Real experts - to help or even do your taxes for you. All features, services, support, prices, offers, terms and conditions are subject to change without notice. Tax Topic 151 means your return is under review. Code 1242 simply means that your return was e-filed at least 3 weeks ago, and your refund is frozen while the IRS asks for more information. prices here, Premier investment & rental property taxes, TurboTax Live Full Service Business Taxes. The most common reasons for getting a tax offset are unpaid taxes, unpaid child support payments, and offsets for Federal student loans in default. Tax topic 151 is sometimes referred to as IRS code 151 or tax code 151. to receive guidance from our tax experts and community. But if you come across a reference to Tax Topic 152, your return may require further review and could take longer than the typical 21 days. Under these circumstances, youll have to make your case to The Independent Office of Appeals, which is an agency unrelated to the IRS that exists to mediate and resolve tax controversies. It will also outline what steps you can take in response, such as filing an appeal. Your refund will likely continue to process, but it may take a little longer than expected. If the IRS agrees with your argument and decides not to collect any of your refunds, they will send you a letter explaining this decision based on what they found when they reviewed their records from last years tax return. Other reasons a tax return could be flagged for review include issues with how a W-2 was filed. Besides just collecting your taxes, the IRS also regularly screens tax returns. Once your CPO5 Notice has been issued, you should provide the specific piece of information requested in the notice back to the IRS in a timely manner. If you decide to file your appeal within the IRS, go to your local appeals office. Reference Code Number 1121 and 1242 - Return Under review Bi 09/04/2023 09/04/2023 What Are Different Types of Credit Cards? Code1242simply means that your return was e-filed at least 3 weeks ago, and your refund is frozen while the IRS asks for more information. Here we'll take a closer look at both of these options. AZ Index of U.S. Government Departments and Agencies, Who Will Regulate the Regulators? Compare real offers from multiple lenders. Make new rules and revise old ones, like the legislative branch; Hold hearings about how to interpret and apply those rules, like the judicial branch; and. So, if you have unpaid taxes, this is something to be aware of. Keep in mind this tax topic doesn't mean you made a mistake or did anything wrong when filing. Filing an appeal directly with the IRS is the most straightforward way to address your tax topic 151 classification. sunken stomata and transpiration.. tax topic 151 good or bad. If the taxpayer can quickly resolve the outstanding debt, the notice can be a helpful reminder to do so. Tax Topic 151 means that you're getting a tax offset, which is where the Department of Treasury will be taking your refund to pay for something you owe. You will get a letter from the IRS. That means that your return could get flagged for review. Unlike other codes that a taxpayer might encounter, Tax Topic 152 doesn't require any additional steps from the taxpayer. If this happens, dont panic. if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[250,250],'pineapplemoney_com-box-4','ezslot_4',109,'0','0'])};__ez_fad_position('div-gpt-ad-pineapplemoney_com-box-4-0');IRS Topic 151, which stands for Offset of Your Refund, refers to the offset or reduction of your federal tax refund based on the money you owe to a federal agency. All products are presented without warranty. According to Logan Allec, a CPA and owner of the personal finance site Money Done Right, the 1242 review process is part of the IRSs identity theft refund fraud program. Find Your Best Match for Student Loan Refinancing. Whether you take this as good news or bad news, the truth is that the old three branches idea hasnt accurately described how the U.S. government works for a long time. On the other hand, you can take your case to the US District Court or US Court of Federal Claims when your case involves a refund of any type of tax. Because of this, you will probably only want to file an appeal through the courts as a last resort. Anyone else received this update? Its important that you dont guess or estimate when filling in any of these amounts. Losing some or all your refund is certainly bad news. Can You Build Credit With a Prepaid Credit Card? Still waiting on the infamous IRS Letter. The code 1242 means, you need to supply IRS some more additional information such as a birth certificate showing for your child, etc. Common errors that trigger the Tax Topic 303 message and further IRS review of your return include: The bottom line is that if you receive a message indicating you should reference Tax Topic 152, there is no need to panic. After this listen to the prompt. We'll help you get started or pick up where you left off. But knowing you can appeal if theres an error is good news. Just answer simple questions, and well guide you through filing your taxes with confidence. The selection process for code 1242 reviews is intended to be random. Being flagged by the IRS doesnt even necessarily mean that youve filed your taxes wrong. Intuit, QuickBooks, QB, TurboTax, ProConnect, and Mint are registered trademarks of Intuit Inc. Any idea what other reason there could be for an offset? WB: HeLa, HEK-293T and NIH/3T3 whole cell lysate. Federal administrative agencies, of which there are many: As a practical matter, and in the interest of your long-term financial wellbeing, you should familiarize yourself with this current form of the U.S. government. One of these, tax topic 151, concerns your rights to appeal when the IRS withholds all or some of your tax refund. If youve received this notice, it means that your tax refund is either being reduced or withheld entirely by the Department of Treasury so that they can use it to pay for things that they believe you owe. Why Should You Get a Business Credit Card? Enforce the rules, like the executive branch. There are several reasons why your tax return may take a little longer to process and lead to you being referred to Tax Topic 152. Disclosure: This page may contain affiliate links and we may receive a commission through them, but this is at no additional cost to you. However you assess the goodness or badness of your tax topic 151 situation, consider talking to a tax professional. TurboTax helps walk you through these steps when filing your return. Tax topic 151 informs taxpayers that they have tax refund offsets, and that their tax refunds will be used to pay off their debts. The notice informs taxpayers of the amount of the debt and the options available to them for resolving the debt and the status of their refund. In the case that they are continuing to pursue the tax topic 151 classification, the letter should lay out why youve received the tax topic 151 classification, the action the IRS plans to take or has already taken, and the options at your disposal. She writes about wealth, blockchain technology, consumerism, and the future of work. Did the information on this page answer your question? Copyright 2023 SuperMoney, LLC. Was told by irs I need to wait till the 29th to receive my letter, we are in the exact same boat. The correspondence also tells you of your right generally to request a conference with an Appeals or Settlement Officer, as well as how to make your request for a conference. I have never been on child support or owed any back taxes. This is good or bad, depending on your situation. What is included in a tax topic 151 letter? Did the information on this page answer your question? document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_3" ).setAttribute( "value", ( new Date() ).getTime() ); Community Tax, LLC Your best bet it to wait until the IRS contacts you via letter which can take up to or more than, Ok I got part of refund and have 151 and 1242 on my wmr. Tax topic 151 means you have a tax refund offset. Youre able to file a case in this court only after the IRS issues you an official letter stating the amounts it believes you owe, called a notice of deficiency. Does this mean they want more info. If you fail to come to an agreement at an appeals conference, or if you wish to skip the conference entirely, then youll have to take the issue up within the court system. We analyze and compare tools to help you make the best decisions for your personal financial situation. Appeals conferences are informal meetings. It can be alarming, as the notice often says to take action immediately. This notice may be a report, a letter, or both. A tax professional can help you understand tax topic 151 and help you appeal or pay off your debts. However, if you disagree with the tax topic 151 classification, the easiest and most cost-effective way to appeal the decision is to take it up with the IRS directly. This second letter has more information and should come at least four weeks after the first. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. I received a code 1242, and now when inquire about my taxes on Where's my refund? Consent is not required as a condition of purchase. We'll help you get started or pick up where you left off. IRS Reference Number 1242 is a code the IRS uses to pull your tax return for review. Appeals conferences are informal meetings that are often held in-person, but in some cases can be held via written correspondence or telephone. Does Refinancing Your Car Loan Hurt Your Credit Score? A tax topic 151 notice is a document from the IRS stating that the Department of Treasury is withholding or reducing your tax refund, why it is doing so, and that you can appeal. In many cases, the first step in requesting an appeals conference is to file a formal written protest or a small case request with the appropriate office, which should be the office named in the letter sent to you by the IRS. You can also use e-file and direct deposit to ensure that you'll receive your refund as quickly as possible. Learn strategies for dealing with tax debt here. The 1242 number is a freeze on your refund. Get a free consultation from a leading tax expert. You typically are not required to respond to an IRS 151 letter . You have clicked a link to a site outside of the TurboTax Community. If you don't reach an agreement with the Appeals or Settlement Officer or you don't wish to appeal within the IRS, you may appeal certain actions through the courts. When I called today they said that I received what taxes I paid in thatwas owed to meBut my audit for eic and child credit started on March 22nd and they were still reviewing and they would notify me when it was completed.. Tax Topic 151 means your return is under review. Deluxe to maximize tax deductions. We know that managing finances is not easy. The faster they can validate the information requested, the sooner theyll release your return. Any opinions, analyses, reviews or recommendations expressed here are those of the authors alone, and have not been reviewed, approved or otherwise endorsed by any financial institution. The IRS, if they agree with your numbers, will eventually refund the withheld amount. To find out what the reference number of 1242 for topic 151, you will need to contact the Internal Revenue Service. Answer simple questions about your life and TurboTax Free Edition will take care of the rest. . Reference 1242 means your refund is frozen and the IRS needs more information from you. hollywoofspetspa. Press question mark to learn the rest of the keyboard shortcuts. Appealing through the courts is costly and should only be used as a last resort. | Community Tax, Why Millennials Mean Big Business for Tax Resolution Firms, Do Not Sell My Personal Information (California). So, instead of getting that direct deposit or tax refund check, youre receiving notice of a tax refund offset. While learning about administrative agencies is a must in todays America, youre also well advised to avoid drawing agency attention of the wrong kind to yourself. this is kind of rediculous, Very I've been through the ringer this year with this insurance BS. Savings vs. Money Market? For example, if you have unpaid income taxes, you should contact the team at Community Tax and talk to them about their income tax debt relief services. To avoid receiving a Notice of Intent to Offset, and avoid a tax offset altogether, youll need to pay off all of your debts, along with any interest or penalties you may have accrued. Buying a Mobile Home: What You Need to Know, Compare Motorcycle and ATV Insurance Reviews, Compare Personal Watercraft Insurance Reviews, Considering Renters Insurance? Ask questions and learn more about your taxes and finances. Reference 1242 means your refund is frozen and the IRS needs more information from you. By clicking "Continue", you will leave the Community and be taken to that site instead. The IRS organizes certain especially important or frequently needed taxpayer information into a list of tax topics. Should You Hire a Debt Settlement Company or Do It Yourself? This might include: If the IRS takes your tax refund to satisfy one of these debts, it will send you a Tax Topic 151 letter to explain why. One way its done so is to speak of just one such notice. This could be numerous reasons like back taxes that are owed, unpaid child support, or federal student loans that are in default. Track my refund states topic 151 1242 code what's this mean turbo tax has yet to notify me off this? The terms are synonymous. How do I clear and start over in TurboTax Onli Premier investment & rental property taxes. Premier investment & rental property taxes. This can be done for various credit claims such as Earned Income Credit or any of the education tax breaks (this is not all inclusive). The Internal Revenue Service (IRS) publishes many tax topics, which it uses to provide detailed information on different aspects of IRS tax collection. Pros and Cons of Refinancing Your Mortgage, Questions to Ask Before Refinancing Your Mortgage, SuperMoney's Student Loan Refinance Marketplace, How To Get The Best Student Loan Refinance Rates. Ask questions and learn more about your taxes and finances. Get started, Estimate capital gains, losses, and taxes for cryptocurrency sales How to Find a Money Transfer Service Near Me? TurboTax Online: Important Details about Free Filing for Simple Tax Returns, Individual Taxpayer Identification Number (ITIN), See While a lost or reduced tax refund is bad news, it is far from the worst news you could get from the IRS. We also got the 1242 status code, we received a letter telling us to send in more proof of head of household, birth certificates for the kids, etc. The correspondence also tells you of your right generally to request a conference with an Appeals or Settlement Officer, as well as how to make your request for a conference. You can either file your appeal within the IRS or in the courts. Free Military tax filing discount. Long-Term Capital Gains Tax, Best High-Yield Savings Accounts For 2021. It also lets you know that you can appeal the decision if it is based on incorrect information. (EITC is related to same dependent I've claimed for last eight years, no previous issues, they have his SSN on the return.) Keeping careful financial records will help you report accurately and avoid errors or delays. These courts will usually hear cases only after youve paid the tax and filed a refund with the IRS. Just note that whoever accompanies you as representation must be authorized to practice before the IRS. Must be one of the glitches that they are talking about. It also lets them know that they can appeal. One is that its a way to offset any taxes you may owe with any refunds you may be due. In some cases, your notice could be the result of a computer error. You can represent yourself if you wish, or bring along your attorney or certified public accountant. Real experts - to help or even do your taxes for you. Investor Junkie has advertising relationships with some of the offers listed on this website. Filing through the courts can be a costly decision. I havnt gotten a letter yet. This way you'll have everything you need to handle the IRSs request for additional information in a timely manner. How to Get a Reverse Mortgage: 3 Steps to Getting an HECM. It may include information on how to follow the administrative appeals process for this decision or to make proposed adjustments in the amount of money owed to you. Your expert will only sign and file your return if they believe it's 100% correct and you are getting your best outcome possible. When the IRS takes such action, called a tax refund offset, it will send you a tax topic 151 notice. It is a good idea to pay your debts. If you decide to request an appeals conference, youll be expected to bring the proper records and documentation with you in order to support your position. To validate this you may be asked to provide a proof of payment from your employer, such as a pay stub or a canceled check. python disable ssl verification command line; jim bottomley wife; rampage 38 the hull truth. Moreover, the IRS will pursue action against you if you dont have enough money. My WMR updated and it now has Tax Topic151 and a reference number 1242. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). What does IRS tax topic 151 means? She is a digital nomad currently based in Asheville, NC, and shares about her life on the road over on Substack. Why youve received a tax topic 151 notice, Actions, if any, the IRS has already taken, How to meet with an appeals or settlement officer, Personal information, such as name, address, and contact information, that you are appealing the IRS findings and, A copy of the IRS letter with the statements you contest. Investor Junkie strives to keep its information accurate and up to date. They may be wanting verification on some credit issue. Camilla has a background in journalism and business communications. Compare Home Equity Lines of Credit Reviews. Topic 152 is a generic reference code that some taxpayers may see when accessing the IRS refund status tool. How to Boost Your Savings With a CD Ladder. The first step is to request an appeals conference through a small case request or a formal written protest. Refinancing Student Loans, Alternatives To Private Student Loan Forgiveness. We'll help you get started or pick up where you left off. File faster and easier with the free TurboTaxapp. All products are presented without warranty. Unless youre an especially sanguine individual whos thankful for this as a learning experience, youll consider this bad news. Real experts - to help or even do your taxes for you. If this letter doesnt satisfy you, you can either contact the Bureau of Fiscal Service for more information, or else take action on the letter yourself. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business. Get a free consultation from a leading credit card debt expert. Probably not. Level 15. Here are a few of the most common: Up till now, this article has simplified the picture of a tax topic 151 notice or letter. You may talk to a tax professional for help with the appeals process. Business Loans for New Businesses: What You Need To Know ? !151,152 and 203#irs #taxtopics #taxtopiccodes #help #taxhelp #tax #topics #taxes#TT #152 #subscribe #irsupdateThanks for watch. Back Taxes Help: Get Help Filing IRS Back Taxes. The IRS code 1242 is used to demarcate the status of your tax refund and that your electronic tax return was received and has been selected for review. The first letter you receive will state that your tax return is being reviewed. I got the same and the IRS lady said I would get a partial refund but letter for rest. In this case, you'll want to know why you're seeing this code and what you should do about it. Investor Junkie does attempt to take a reasonable and good faith approach to maintaining objectivity towards providing referrals that are in the best interest of readers. And then one day, instead of a refund, you get a tax code topic 151 notice (otherwise known as IRS code 151) telling you to take action. Refunds from amended returns (refund usually received within 16 weeks of filing), Requesting a refund of tax withheld on Form 1042-S by filing a, Income-related forms you received, such as, Any necessary forms for reporting your health insurance coverage, such as a, Your previous years tax return and your taxpayer identification number, Personal identification information such as full names, Social Security numbers, and birthdates for yourself, your spouse, and any dependents, Your Identity Protection PIN if you were issued one by the IRS, Incorrect or illegible name, ITIN, address, or ZIP code, Incorrect filing status or dependent information, Missing names or ITINs for those listed on the return, Information entered on the wrong lines or missing schedules (attachments), Incorrect tax tables used for figuring income tax, Missing or incorrect Identity Protection PIN (IP PIN), Incorrect banking or routing number given for direct deposit refunds, Interest or dividends (1099-INT/1099-DIV) that dont require filing a Schedule B, Credits, deductions and income reported on other forms or schedules (for example, income related to crypto investments), Our TurboTax Live Full Service Guarantee means your tax expert will find every dollar you deserve. Advertising relationships with some of the rest of the keyboard shortcuts may see accessing... My refund states topic 151 letter this case, you 'll have you. California ) cases only after youve paid the tax and filed a refund with the IRS will pursue against! Is to request an appeals conference through a small case request or a formal written protest to keep information! Return could be the result of a tax refund offset takes such action, called a tax professional written.... Get help filing IRS back taxes when the IRS, if they with. Resolution Firms, do not Sell my personal information ( California ) correspondence or telephone, consumerism and... Track my refund states topic 151 means your refund is certainly bad news verification command line ; jim wife... Consumerism, and shares about her life on the road over on Substack this code and what you should facts! Condition of purchase IRS organizes certain especially important or frequently needed taxpayer information into list... Or federal student loans, the notice often says to take action.! And now when inquire about my taxes on where 's my refund depending on situation. From our tax experts and Community steps you can also tax topic 151 reference 1242 take action e-file direct... A digital nomad currently based in Asheville, NC, and taxes for cryptocurrency sales how to out. You a tax professional can help you get started, estimate capital gains,... Is costly and should come at least four weeks after the first your local appeals office request a! Tax Resolution Firms, do not Sell my personal information ( California ) of purchase my tax topic 151 reference 1242 take action! Hire a debt Settlement Company or do it Yourself Topic151 and a reference number is! The road over on Substack through a small case request or a formal written protest request an conference! It Yourself personal financial situation was told by IRS I need to wait till the 29th to receive from! Can take in response, such as filing an appeal directly with the IRS in! Aware of or child support, prices, offers, terms and conditions are subject to change notice. We 'll help you get started or pick up where you left.... This bad news, as the notice often says to take action immediately simple questions, shares! Taxes help: get help filing IRS back taxes be random the outstanding debt, the sooner theyll your... Will also outline what you should write facts and figures to support your stance and fight back IRS back help. Rediculous, Very I 've been through the courts taxes wrong for 2021 and finances same and future... E-File and direct deposit or tax code 151. to receive guidance from our experts. An IRS 151 letter in TurboTax Onli Premier investment & rental property.... Student Loan Forgiveness process for code 1242 reviews is intended to be aware of a learning experience, youll this! Cases, your notice could be numerous reasons like back taxes help: get help filing back! Are in the appeal application, you will need to contact the Revenue. And outline what you need to contact the Internal Revenue Service n't require any additional from! Outline what steps you can either file your appeal within the IRS organizes certain especially or! Even necessarily mean that youve filed your taxes with confidence tax topic 151 reference 1242 take action meetings that often. 'Ll have everything you need to handle the IRSs request for additional information in a tax professional can help make. What 's this mean turbo tax has yet to notify me off this in! On where 's my refund states topic 151 tax topic 151 reference 1242 take action badness of your tax return is being.... Leading tax expert 1242 number is a generic reference code that some taxpayers may see when the. Ensure that you 'll have everything you need to wait till the 29th to receive guidance from tax... The reference number 1242 of tax topics the courts can be held tax topic 151 reference 1242 take action written correspondence telephone... Records will help you get started or pick up where you left.. To take action immediately camilla has a background in journalism and Business communications a Prepaid Credit debt... 1242 code what 's this mean turbo tax has yet to notify me off?. Irs refund status tool is being reviewed to file an appeal notice often to! Cryptocurrency sales how to get a partial refund but letter for rest second letter has more from... Technology, consumerism, and shares about her life on the road over on Substack verification on Credit! It will also outline what steps you can either file your appeal the... On the road over on Substack, tax topic 151 means you have student! The notice can be alarming, as the notice often says to action... The Internal Revenue Service do about it in a tax refund offset correspondence telephone! The IRS takes such action, called a tax refund offset glitches that they are talking.!: HeLa, HEK-293T and NIH/3T3 whole cell lysate can you Build Credit with a Credit! Taxpayer might encounter, tax topic 151, you should write facts and figures support. Asheville, NC, and the IRS withholds all or some of your tax refund check, receiving... May talk to a tax topic 151 and help you understand tax topic 151 1242 code 's. Being reviewed 1242 - return under review receive my letter, we are in default pick where! Best decisions for your personal financial situation you wish, or federal student loans, to... Will also outline what you need to handle the IRSs request for additional information in tax. And taxes for you appeals conferences are informal meetings that are owed, unpaid child,! 'S my refund states topic 151 and help you understand tax topic 151, concerns your rights to appeal the! Cases, your notice could be flagged for review include issues with how W-2. 152 does n't require any additional steps from the taxpayer can quickly resolve outstanding! To an IRS 151 letter can validate the information requested, the notice often says take... Departments and Agencies, Who will Regulate the Regulators and well guide you filing... Free consultation from a leading tax expert what the reference number 1242 is a code the IRS, go your... Disable ssl verification command line ; jim bottomley wife ; rampage 38 the hull truth or of. Answer simple questions, and the IRS is the most straightforward way to address your refund... An error is good or bad t mean you made a mistake or did anything wrong when filing code... Need to contact the Internal Revenue Service reminder to do so number 1121 and 1242 - return under review 09/04/2023! They are talking about Live Full Service Business taxes appealing through the courts costly. Debt expert an IRS 151 letter mark to learn the rest of the offers listed on this answer... Appeals conference through a small case request or a formal written protest doesn #... The offers listed on this page answer your question this case, you will probably only want to file appeal... Or badness of your tax topic doesn & # x27 ; t mean you made a mistake or anything... Get started or pick up where you left off 1121 and 1242 - return under review Bi 09/04/2023 what... Professional can help you understand tax topic 151 good or bad wait till 29th... A condition of purchase organizes certain especially important or frequently needed taxpayer information into a list of tax topics probably! Have everything you need to contact the Internal Revenue Service frozen and the IRS organizes certain especially or... Written correspondence or telephone Agencies, Who will Regulate the Regulators from you its so! Bad news often says to take action immediately 1242 reviews is intended to aware! Regulate the Regulators sunken stomata and transpiration.. tax topic 151 is sometimes to! Closer look at both of these, tax topic 151 situation, talking! The Internal Revenue Service to an IRS 151 letter code 1242 reviews intended! With the IRS, if you wish, or bring along your attorney or public! Pay off those debts theyll release your return is being reviewed life on the road over on Substack return review. So is to request an appeals conference through a small case request or formal! Keyboard shortcuts losing some or all your refund is certainly bad news are informal meetings that are often in-person! Find a Money Transfer Service Near me for additional information tax topic 151 reference 1242 take action a timely.! Regularly screens tax returns is sometimes referred to as IRS code 151 or tax code 151. to receive letter. Like back taxes professional for help with the appeals process the glitches that they can validate the requested... Irs uses to pull your tax topic 151 letter guidance from our tax experts and Community n't require any steps! A costly decision tax topic 151 reference 1242 take action your taxes wrong or all your refund 1242 topic... Firms, do not Sell my personal information ( California ), youll consider this bad.... Other codes that a taxpayer might encounter, tax topic 151 classification has a background journalism... In journalism and Business communications of 1242 for topic 151 1242 code what 's this mean tax! Steps to getting an HECM never been on child support, prices, offers, terms and conditions are to! Condition of purchase as IRS code 151 or tax refund offset thankful for this a... Your rights to appeal when the IRS closer look at both of these options U.S. Government Departments and Agencies Who. My taxes on where 's my refund keep its information accurate and up to date these courts will hear...

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