The short answer is yes. Reference number 1242 could indicate a potentially serious issue that requires your full attention. In most cases, this code indicates that the IRS suspects a tax fraud or identity theft. You’ll receive a CP05 notice soon after this reference number appears on your WMR account. The document contains instructions on how to resolve the matter that caused the processing delay. The good news is that you won’t have to do anything until the IRS contacts you or your authorized representative if you filed a tax return. However, they may need up to two months to complete the additional review. So the only thing you can do during this time is to keep monitoring your tax return’s status on WMR. Follow this link if you need more information about this reference number.