IRS transaction code 420: Examination indicator

What the IRS calls TC 420

Document 6209, Section 8A lists TC 420 as Examination indicator (no debit or credit shown for it in Document 6209). The remarks column says:

“Indicates that return has been referred to the Examination or Appeals Division.”

Source: IRS Document 6209, Section 8A, Master File Codes (Rev. 3/2018), entry for transaction code 420.

In plain language

TC 420 records a referral or assignment. Document 6209 says it is computer generated when an opening record is posted and that it can be input from Form 3177. It records the status of the return; it does not say what, if anything, will change.

The doc also says that while a TC 420 is unreversed, a TC 290, 291, 298 or 299 will generally not post unless certain priority codes are present, and that a zero-amount TC 290, 294 or 295 will post. That is a processing rule, not a prediction.

What the date next to it means

Document 6209 does not define the date on a TC 420 line. By the Taxpayer Advocate Service’s explanation, a transcript date is normally the transaction date, with the cycle date showing when the IRS processed the line. The Taxpayer Advocate Service explains the general rule: a transaction date is the effective date of a transaction on a tax account, and the cycle date represents the date the IRS processed it. Sometimes the two coincide and sometimes they do not. See the transcript date guide and the cycle code decoder.

What the IRS publishes about what comes next

• Document 6209 says TC 421 reverses TC 420 or 424, and that a TC 421 is generated when a TC 300 posts with specific disposal codes and an unreversed TC 420 or 424 is present.
• It lists a TC 670 payment that creates a credit balance while a TC 420 or 424 is unreversed as one way a TC 570 hold is generated.

This page gives no timing. The IRS documents we read state no timeline for what follows TC 420.

Related codes

• TC 424 (examination request indicator): examination request indicator.
• TC 300 (additional tax assessment by examination or appeals): assessment that can reverse a 420.
• TC 570 (additional liability pending and/or credit hold): hold a payment can generate while a 420 is open.
• TC 290 (additional tax assessment): adjustment affected by an unreversed 420.

Who this is for

Filers, family members and preparers reading an IRS account transcript who want the published definition of a single line before looking at the rest.

What this page does not cover

• Why TC 420 is on your account, what it means for your situation, or what to do about it.
• When a refund will arrive. Use the IRS refund tracker or your online account.
• Anything beyond the Rev. 3/2018 Section 8A entry and the Taxpayer Advocate Service explanations cited below.
• Tax or legal advice. Use your IRS online account or contact the IRS or a qualified tax professional for your case.