IRS code 420: Examination of tax return
- Effect:
- Exam indicator
Your return was referred to the IRS's examination or appeals function.
What code 420 means
Code 420 means the return has been referred to, and assigned in, the IRS's Examination or Appeals function.
The Taxpayer Advocate Service describes it as showing the return is under examination consideration, though it may or may not end up being audited.
While a 420 is open, routine adjustments to that year generally can't post, and a payment that creates a credit can set a 570 hold.
What to do
- If the IRS audits your return, it notifies you by mail. It doesn't start audits by phone.
Codes often seen with 420
- 421 Examination indicator closed The examination indicator (420 or 424) was reversed.
- 424 Examination request Your return was referred to the IRS's examination or appeals function.
- 300 Additional tax assessed by examination An examination or appeals decision added tax to this year.
- 570 Additional account action pending (refund hold) The IRS put a hold on the account, so any refund waits until the hold is released.
Source
IRS title: Examination Indicator (Document 6209, Section 8A, page 8A-16).
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TTOC Finder is independent and isn't affiliated with the IRS. This page explains what the code means in general. For your own account, check your IRS online account or Where's My Refund?