My 2018 tax transcript says “examination of tax return”

[Noseynancy95]

My 2018 tax Transcript says code 420 “examination of tax return” dated October 11th. I have yet to receive any notices if I was being audited would I have known by now? 

[JulieS]

Yes, that code does indicate an examination. That does not always mean that they will contact you.

In 2018, many returns were evaluated for underpayment penalties, but then the penalty was waived and the taxpayers were never contacted. You would have received a letter by now, so unless you moved recently, I am sure you are fine.

[Noseynancy95]

Since it said it was opened in October and I’ve had no change of address , it’s probably not an audit they would’ve sent me paperwork if it was an audit right? 

[JamesG1]

Is the code on the transcript TC 420, Examination of tax return?  See IRS Master File Codes, page 8A-16.

The IRS selects many returns or examination but audits only a fraction of those selected.  So the notation does not necessarily mean that you will be audited.

If you are being audited, you will receive a separate notice from the IRS.

[tax_johnny]

Hi @Noseynancy95 

Did IRS ever contact you? I have 420 as well on my transcript. I am anxious about next steps

[Jeomarroquin]

Watever happened with tha 420 code thats wat i got now

[JohnW152]

As indicated above, the IRS' Transaction Code (TC) 420 indicates that an exam was initiated.

Do you possibly also see a TC 421?  This would indicate that the exam was closed. 

Sometimes examinations are opened and closed without notifying the taxpayer, if no good basis for pursuing the exam is identified.

[tax_johnny]

After a few weeks I got 421, which means examination was closed and I received my refund. 

[Jeomarroquin]

No 421 yet i had 424 then changed to 420 on friday

[Jeomarroquin]

Awesome hope mine goes away…so look for that 421

[JamesG1]

Code 421 is exactly the code that you want to see.  See IRS Transaction Codes Pocket Guide page 6.

The notation 420 does not necessarily mean that you will be audited.

The IRS selects many returns for examination but audits only a fraction of those selected. 

If you are being audited, you will receive a notice from the IRS.

[Jfrazier30]

I woke up today with tax code 420 but I still have a processing date of 02/21/2022 and I have a - sign if from of my refund amount what is going on this has never happened before will I still get my refund and I have had that code 02/04/2022 and I have received no mail or anything? 

[Cynthiad66]

@Jfrazier30

Please provide additional information.  TC 420 is Transaction Code 420 - Examination Indicator.  However, where did you receive this code and what year did it apply to?  I have never heard of an examination prior to the return being processed.  If you can please clarify your situation, we will be able to assist you better.

Please provide:  Notice received and for which tax year and the specifics of the notice.

[Jfrazier30]

My return is already processed and this is for my 2021 tax season. I have a processing date of 02/21/2022 but the last code I have on my account transcript is 420 I'm a pather so my wheres my refund says the path message. So what dos this mean and it has code 420 on 02/04

[Jeomarroquin]

I got the same bro codes 768   810 811 971 420 been like that since last friday