420 Code on Transcript While Claiming CTC and EIC - As of Date Still Shows Feb 24th

The code 420 on your transcript typically indicates that your return has been selected for examination, per Internal Revenue Manual 4.1.3.2. This doesn't necessarily mean a full audit, but rather that the IRS is reviewing specific elements of your return. When claiming both EITC and CTC, your return undergoes additional verification procedures under IRC Section 32(k) and 24(g). The static "as of" date of February 24th suggests that the review process was initiated but hasn't progressed to the next stage yet. Have you received any CP75 or Letter 566 notices requesting additional documentation?

I went through this exact situation last tax season. According to the IRS website and several tax forums I follow, code 420 with a static "as of" date is definitely concerning. I highly recommend using https://taxr.ai to analyze your transcript. It helped me understand exactly what was happening with my return when I had similar codes. The tool explained that my 420 code was specifically related to income verification for my CTC claim, not a full audit. It also predicted that I'd receive a verification letter within 2 weeks, which I did. Saved me so much anxiety knowing exactly what was happening!

If you're seeing code 420, you definitely want to get ahead of this before it drags on for months (ask me how I know 😅). After waiting 6 weeks with no movement, I finally used Claimyr (https://youtu.be/_kiP6q8DX5c) to reach an actual IRS agent. Got through in about 30 minutes when I'd been trying for days on my own. The agent confirmed I needed to send in documentation for my CTC claim and gave me a fax number to expedite the process. Honestly saved me weeks of waiting for a letter that might have gotten lost in the mail.

I had the same issue last year with code 420 and claiming both credits. The "as of" date stayed February 18th for almost two months. I was really concerned, but eventually received a letter asking for additional documentation to verify my eligibility for the credits. After I sent everything in, it took about 3 weeks for my transcript to update and then another week to receive my refund. The whole process took almost 3 months from filing to refund, but everything worked out in the end.

I think you should take a proactive approach rather than waiting. Here's what I recommend: 1. First, pull your complete wage and income transcript for 2023 to verify all income was reported correctly 2. Gather all documentation that supports your CTC and EIC claims now (birth certificates, school records, proof of residency for qualifying children) 3. Check if you meet the relationship, age, residency, and joint return tests for the qualifying child 4. Verify that your AGI falls within the EIC limits for married filing jointly 5. Check if your investment income is below the threshold Even if you haven't received a letter yet, having this documentation ready will save you time if they do request verification.

Be very careful with how you respond to any IRS inquiries about code 420. I had this exact situation in 2022, and I made the critical mistake of sending insufficient documentation for my EIC verification. This resulted in a partial disallowance of my credits and extended the review by an additional 60 days. When they requested proof of my qualifying child, I only sent the birth certificate, but they also needed school records to verify residency. The terminology in their letter was extremely specific - "proof of residency" means the child must have lived with you for more than half the year, not just proof that you have a child. This delay cost me nearly 4 months of waiting.