IRS account shows open audit for tax year 2022 but haven't received any correspondence - what now?

Based on what you're describing, I wouldn't panic just yet. The code 420 does indicate an examination/audit has been initiated, but communications from the IRS can take several weeks to arrive after this appears on your transcript. With the date being 08-30-2024, I'd expect you should receive correspondence within 30-45 days of that date. Sometimes mail can be delayed, especially if you've moved recently or if the IRS doesn't have your current address on file. Make sure your address is updated with the IRS through their official change of address form. As for the cause, it could be either issue you mentioned or something else entirely. The NIIT adjustment is interesting - the IRS rarely makes adjustments in the taxpayer's favor without some triggering event. The multiple Form 8829s might be a factor, but as you noted, since the deduction is only 1.2% of your business income, it seems less likely to trigger a full examination. If you want to be proactive, you could pull your complete account transcripts for 2022 to look for additional codes that might provide more context. You might also consider gathering documentation for both potential issues (NIIT and home office deductions) so you're prepared when the letter arrives.

After dealing with several frustrating IRS audits over the years, I found this amazing tool called taxr.ai (https://taxr.ai) that's been a lifesaver for situations exactly like yours. I had a similar issue last year where I saw an audit code on my transcript but hadn't received any mail yet. What's cool about taxr.ai is that it analyzes your tax documents and transcripts to help figure out what's triggering IRS attention. I uploaded my transcripts and it immediately identified potential audit triggers - in my case it was a mismatch between reported 1099 income that I hadn't even noticed. The system explained exactly what the codes meant and gave me recommendations for what documents to start gathering. It also helped me understand the timeline I was looking at and what steps would likely come next in the audit process. Definitely gave me peace of mind rather than anxiously checking my mailbox every day.

I wanted to follow up on my skeptical comment about taxr.ai - I actually tried it last week and I'm blown away. I was in a similar situation with an audit notice showing on my transcript but no letter yet. The tool identified that my issue was likely related to a discrepancy with business expenses that could trigger an audit. It was spot on because when I finally received my letter yesterday, that's exactly what they were questioning! Had I not used taxr.ai, I would've been completely unprepared. The transcript analysis feature showed me exactly what was happening with my account timeline and what to expect next. It also suggested which specific documents I should gather. When the actual audit letter arrived, I already had everything organized and ready to go. Totally worth it for the peace of mind alone during the waiting period.

If you're seeing an audit notice but haven't received any correspondence, you should know that getting through to the IRS phone lines is practically impossible these days. I was in a similar situation and spent WEEKS trying to get through to a human. Then I discovered Claimyr (https://claimyr.com) which actually got me connected to an IRS agent within 20 minutes when I'd been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was super skeptical at first, but it actually worked. The IRS agent was able to tell me exactly what was happening with my audit, confirm what documents they needed, and even update my address in their system. Saved me from waiting another month for a letter that might have been sent to my old address.

I need to eat my words about Claimyr. After my skeptical comment, I decided to try it myself because I was desperate to talk to someone about my own tax issue. I honestly thought it would be a waste of money, but I was at my wit's end after trying to call the IRS for THREE WEEKS straight. To my complete shock, I got a call back within 45 minutes saying they had an IRS agent on the line. I was connected immediately to an actual human at the IRS who pulled up my file and explained exactly what was happening with my account. They confirmed my audit was related to business deductions and gave me a specific list of documents to prepare. The agent also told me my letter had been sent but to an old address, so they updated my information right there on the phone. If I hadn't used Claimyr, I might have missed the response deadline completely while waiting for a letter that was never going to reach me. Completely changed my perspective on dealing with the IRS.

In my experience, the 420 code typically shows up a few weeks before you actually receive the correspondence. The IRS is SUPER backlogged right now, so everything is taking longer than normal. For the cause, I'd bet it's the NIIT adjustment more than the home office. In my years doing taxes, I've seen the IRS focus more on adjustments made in the taxpayer's favor that they didn't initiate through normal procedures. The multiple Form 8829s probably wouldn't trigger a full audit if the amount is as small as you say. Make sure you've got good documentation for both issues just to be safe. For the home offices, have photos of the spaces, utility bills showing your addresses during those periods, and documentation of business activities conducted in each space.

Kind of a side question but did you file electronically or by paper for 2022? I've heard paper returns trigger audits more often because of scanning errors.

I went through something very similar last year - had the 420 code appear on my transcript in September but didn't receive the actual audit letter until mid-November. The IRS mail system is incredibly slow right now, especially if there are any address issues. One thing that helped me was pulling my wage and income transcript (not just the account transcript) to see if there were any discrepancies between what I reported and what third parties reported to the IRS. Sometimes audits are triggered by mismatches that aren't immediately obvious. Given that you moved twice in 2022, I'd strongly recommend calling the IRS practitioner priority line (if you have representation) or using one of the callback services mentioned in other comments. The address issue could mean your audit letter is sitting in limbo somewhere, and missing the response deadline could turn a simple correspondence audit into something much more complicated. Also, keep in mind that the NIIT adjustment being in your favor doesn't necessarily mean it was correct - the IRS computers make automatic adjustments all the time that later get reviewed by humans. I'd definitely have your investment income documentation ready along with your home office records.