Code 420 on transcript - audit or simple examination? Need help understanding what's happening

Tax professional here. Code 420 indicates your return is under examination, but this doesn't automatically mean a full audit. It's often just a review of specific items that need verification. Could be something as simple as income verification or checking documentation. Most 420 holds are resolved within 60-120 days without requiring additional taxpayer action.

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got the same code last month, still waiting 😮‍💨 this whole process is ridiculous

mine cleared after 6 weeks. just hang tight, unless they send you a letter requesting more info youre prob good 👍

its not necessarily an audit bestie! I had this last year and it was just them double checking my W2 info. Cleared up on its own after like 2 months 💅

these clowns at the IRS need to get it together fr fr... been waiting since february with the same code 🤡

Code 420 can definitely be stressful! From my experience, it's usually just a routine review rather than a full audit. The IRS computer system flags returns for various reasons - could be income matching, deduction verification, or even just random selection. Most of these resolve automatically once their systems finish cross-checking your info with third-party documents (W-2s, 1099s, etc.). Try not to worry too much unless you receive an actual notice requesting documentation. The waiting is the worst part but it's typically just their backlog processing through.