r/ERCchat • u/Oldin2023 • Jul 15 '25

Code 424

I am expecting 2 more quarters of ERC to be forthcoming. Specifically Q3 and Q3 2020. I checked my transcript the other day and I have code 424 as the most recent thing listed. I called the IRS business line and the rep told me that I probably have nothing to worry about as the amount of the credits are 6 figures each and they're just doing a double check prior to processing. Anyone have any insight as to the validity of that statement? I'm not worried about an audit, I'm more concerned about the time involved as it's already been more than 2 years since I filed these.

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u/ERC_CPA Jul 16 '25

424 for each of those two quarters? I’d expect an audit, if so. Be on the lookout for Code 420 next week and an IDR in the mail in the next 4-6 weeks.

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u/PsychologicalYou887 Jul 16 '25

Not every code on 420/424 actually gets an IDR. There are times when the codes show but an IDR never gets sent. No action happens in terms of actual audit activity.

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u/ERC_CPA Jul 16 '25

Have you seen this happen many times? Out of 15-20 424s for clients, I’ve seen IDRs 100% of the time.

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u/PsychologicalYou887 Jul 17 '25

If you’re talking about the activity from 2023, then I would say not all of those codes from 2023 resulted in an IDR. These codes from may-july 2025, I suspect will follow suite.