The return was pulled for examination consideration — not yet an audit. Here is what it means, what usually happens next, and what to do.
On your account transcript it reads: 424 Examination request indicator Hold or watch
TC 424 marks a return that has been requested for examination review — selected for consideration, which is not the same as an audit being opened. Some 424s never become examinations.
Also written as: IRS code 424, code 424 on transcript, 424 IRS code, transaction code 424.
If the examination unit decides to proceed, a TC 420 posts and a letter arrives. If not, the indicator is reversed and processing continues. A refund may be held while the return is being considered.
| On the same transcript | What it usually means |
|---|---|
| 424 alone | Pulled for review; no examination opened yet. |
| 424 → 420 | An examination was opened. |
| 424 reversed with no 420 | Considered and released without examination. |
If a letter follows, you will be able to answer within its deadline.
Unless you have found a genuine error — then fixing it is sensible.
That is the signal an examination has actually started.
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 →No. It means the return was selected for possible examination. An audit starts when TC 420 posts.
It can, while the return is being considered.
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 424, code 424 on transcript, transaction code 424 and TC 424 all refer to the same three-digit transaction code the IRS posts to your account.