IRS Transcript Code 421: Examination Referral Reversed
The exam referral closed. If you were watching a 420 nervously, this is the code you wanted.
The official definition, IRS Document 6209
Reverse Examination Indicator. Reverses TC 420 or 424.
What it means for your refund
If a 420 or 424 was holding the module, the 421 lifts that exam block. It does not send money by itself; the refund still appears as an 846 once any other holds clear.
The folklore, corrected
Myth: A 421 means I won an audit or my refund is on the way.
Document 6209 defines 421 as the reversal of the examination indicator, the 420 or 424. It means the referral closed, which can happen with no exam at all, a quick correspondence question, or a finished audit. It marks the referral status, not the outcome or your refund.
Reading the transcript around it
Codes rarely act alone: holds (570, 810) pair with releases (571, 811), a 971 often flags the letter that explains a hold, and the refund itself is always the 846 line. The full code index maps the neighbors, including the cycle code and As-of date explained without the folklore. If the account shows a balance rather than a refund, the letters that follow are decoded in our IRS notice decoder.
Sources: IRS Document 6209, Section 8A; IRM 21.5.6; IRS refund myth page. Verified July 2026.
General educational information, not tax advice. A transcript entry only means something in the context of your account; a credentialed tax professional can read yours in full. ClearChoiceRadar is not affiliated with the IRS or any government agency.