424 | Examination referral
This code indicates the tax return has been referred to an examination unit for further review.
What This Code Means
Code 424 reflects that the return has been referred to an examination function for additional review. It typically precedes or accompanies an examination-related action. This code indicates that the account has been flagged for review consideration but does not itself confirm final examination decisions. It is part of the IRS internal workflow and signals movement toward examination processing. The code does not indicate outcome, liability change, or refund denial by itself.
Where Users Usually See This Code
- On IRS account transcripts
- In conjunction with other examination-related transaction codes
- During review of account activity
Why This Code Appears
- The return met criteria requiring examination referral
- Internal review processes flagged items for escalation
- Additional scrutiny was required beyond standard processing
- Risk or compliance filters triggered examination routing
What Typically Happens Next
- The account may receive code 420 indicating examination initiation
- Correspondence may be issued
- Refund processing may pause during review
What This Code Is Not
- It is not a refund issuance code
- It is not a final audit determination
- It is not a guarantee of adjustment
Troubleshooting Checklist
- □ Monitor the transcript for additional examination-related codes
- □ Review official IRS notices for further information
- □ Avoid assuming final outcome based solely on referral
- □ Use official IRS communication channels for clarification if needed
Notes And Edge Cases
Code 424 can appear before a formal examination is opened. In some cases, the referral may not result in extended examination if resolved quickly. The transcript cycle dates provide context for when referral occurred. The code does not specify the scope of review.