IRS audit code | Examination initiated indicator

Industry

IRS / Tax

Canonical

/irs-tax/error-codes/irs-audit-code/

Last Updated

Feb 25, 2026

Summary

This status indicates that the IRS has initiated an examination or audit review process.

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Use these links to pivot between the directory, a focused guide, and nearby related codes.

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Guides

IRS Notice Codes (CP / LT) Explained: What They Mean + What To Do Next
Tax Transcript Codes (TC) Explained: Refund Holds, Audits, Identity Verification + Timelines

Related Codes

What This Code Means

“IRS audit code” generally refers to transcript entries such as code 420 that indicate examination initiation. It reflects that the account has been selected for review beyond routine processing. The code does not specify the scope or outcome of the examination. It signals that review procedures are active within IRS systems. The transcript provides additional context regarding related adjustments.

Where Users Usually See This Code

On IRS account transcripts
During review of account activity
In conjunction with notice entries

Why This Code Appears

Return selected for examination
Discrepancies required review
Compliance screening triggered further review
Administrative examination initiated

What Typically Happens Next

Additional review-related codes may post
Notices may be issued
Adjustments may occur after review completion

What This Code Is Not

It is not automatic denial
It is not refund issuance
It does not confirm outcome

Troubleshooting Checklist

□ Review transcript for examination codes
□ Monitor for notice entries
□ Retain supporting documentation
□ Consult official IRS resources if clarification is needed

Notes And Edge Cases

Examination codes may remain until review concludes. Multiple adjustment entries may follow. Transcript review provides context on related actions.

Related Codes

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