The examination (TC 420) is closed — with or without a change. Here is what it means, what usually happens next, and what to do.
On your account transcript it reads: 421 Closed examination of tax return Normal / good news
TC 421 closes an examination opened by TC 420. Either the examination ended with no change, or its result has been assessed (TC 300 or 301) and the file is finished.
Also written as: IRS code 421, code 421 on transcript, 421 IRS code, transaction code 421.
If the examination closed with no change and a refund was pending, an 846 can follow. If additional tax was assessed, a bill (CP22A or similar) arrives, with interest charged from the return's original due date on the new balance.
| On the same transcript | What it usually means |
|---|---|
| 420 → 421 | No-change examination. |
| 420 → 300 → 421 | Additional tax assessed; a balance-due notice follows. |
| 420 → 301 → 421 | The examination reduced your tax. |
That tells you the outcome in dollars.
Pay, set up an installment agreement, or request audit reconsideration if you have new documentation.
You will need it if the same issue comes up again.
Paste it into the free decoder — every code explained, open holds flagged, refund and offsets summarized. Runs in your browser; nothing is sent anywhere.
Decode my transcript →Yes. The examination is closed. Any change it made posts separately as TC 300 or 301.
Yes — through audit reconsideration with new information, or through Appeals or Tax Court if the deadlines in your examination letters have not passed.
On your IRS account transcript for the tax year — in your IRS Online Account under tax records, or by mail using Form 4506-T. The transactions section lists each code with its description, date and amount. Return transcripts do not show transaction codes.
Yes. IRS code 421, code 421 on transcript, transaction code 421 and TC 421 all refer to the same three-digit transaction code the IRS posts to your account.