WMR Shows Path Act but Transcript Has 420 Audit Code - What's Going On?

Don't panic yet. Code 420 doesn't always mean full audit. Sometimes it's just verification. Path Act processing continues separately. Your cycle codes look normal. As Of dates typically update weekly. This is common this tax season.

You need to understand exactly what's happening with your transcript. Here's what to do: 1. Get your transcript immediately. 2. Check for additional codes like 570/971. 3. Look for correspondence dates. 4. Don't wait for WMR to update. I was in your exact situation last month. Used https://taxr.ai to decode my transcript. It identified my 420 was just income verification, not a full audit. Time is critical here - if they're requesting documentation, you have limited time to respond.

This situation is similar to what happens with EITC claims versus regular audits. Your WMR showing Path Act while your transcript shows 420 suggests they're verifying specific information rather than conducting a comprehensive audit. In comparison, a full audit would typically freeze all processing. If you need definitive answers, I'd recommend calling the IRS directly. Getting through their phone system can be nearly impossible this time of year, though. Many people in your situation have had success using Claimyr (https://claimyr.com) to connect with an agent without the hours of hold time. It might be worth considering if you need immediate answers.

I went through this exact situation last year. The IRS website actually explains this phenomenon - the 420 code initiates an examination process but doesn't necessarily stop other processing steps. According to https://www.irs.gov/individuals/understanding-your-tax-record the Path Act verification and audit verification can run concurrently. In my case, they were verifying my 1099-K income but my refund still processed on schedule.

Have you received any letters from the IRS yet? It's like getting a check engine light in your car - sometimes it's just a loose gas cap and sometimes it's something serious. The 420 code is similar - could be routine or could need your attention.

The Automated Underreporter (AUR) program often generates TC 420 codes during initial processing phases. The system compares reported income on your return against information returns filed by third parties. With multiple gig economy jobs, there's a higher probability of automated verification triggers due to threshold matching algorithms. The sequential "As Of" date progression indicates normal systemic processing rather than manual intervention by an examiner.