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Level 1
posted Apr 26, 2021 6:46:39 AM

Code 420 on transcript

Hi, WMR advises me to refer to Tax Topic 151, and to Take Action.  My transcript has code 420 examination on it.  I got my refund minus $1000 which the IRS kept.  Can anyone please tell me what all of this means?  

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1 Replies
Expert Alumni
Apr 26, 2021 7:10:41 AM

Code 420 on your transcript indicates that your return has been referred to the Examination or Appeals Division. You can try and call the IRS at 1-800-82-1040 to find out why your refund was short $1,000. Also see the information about IRS Topic No. 151 Your Appeal Rights.

 

There are a few reasons why refunds received from the IRS may be different than expected this tax season:

  • The IRS adjusted the recovery rebate credit calculated on your return,
  • The IRS made adjustments due to differences in what is reported to them or adjustments to certain credits and deductions,
  • Your refund is offset as part of the Treasury Offset Program,
  • An adjustment for Federal taxes owed for a previous year.