IRS Transcripts

Code 922 on Your IRS Transcript: The Underreporter Review, Explained (2025)

By Angeline Balsitis, EA · Reviewed by Melissa Ly, Chief Tax Officer · Updated November 8, 2025 · Editorial Standards

What code 922 means on an IRS transcript

When you pull your account transcript and see Transaction Code 922, the description next to it reads "Review of unreported income." This is part of the IRS Automated Underreporter (AUR) program — the system that machine-matches the income shown on your tax return against every W-2, 1099, K-1, and other information return that employers, banks, and platforms sent the IRS for that year.

The 922 almost always posts with a dollar amount of $0.00. That trips people up. The zero doesn't mean you're fine and it doesn't mean you owe — it means the entry is a flag that a review is happening, not an adjustment to your balance. The IRS hasn't decided anything yet. (If you want help reading the rest of your transcript, see our guide on how to read an IRS account transcript.)

One important thing code 922 is not: a full audit. AUR only compares income documents to your return. It does not dig into your deductions, credits, or receipts the way an examination would.

Why you got a code 922

The IRS receives billions of information returns each year. Its computers automatically match those forms to filed returns. Code 922 posts when your return is pulled into that matching process. Common triggers include:

• A 1099 you forgot about or never received — freelance work, a brokerage account, gig-economy income, or a canceled debt (1099-C).
• A second W-2 from a job you held briefly during the year.
• Investment income — dividends, interest, or stock sales — that didn't make it onto the return.
• A simple data mismatch: a transposed figure, a form filed under the wrong tax year, or income reported on the wrong line.

If you recently got a surprise 1099 you weren't expecting, that's exactly the kind of document that can trigger an underreporter review.

What happens after code 922 — and what comes next

Here's the part that actually calms most people down: a code 922 does not automatically become a tax bill. The review has three possible outcomes, and the automated sequence only escalates if a real discrepancy is found.

1. Code 922 posts — your return is under underreporter review. No balance change. You are here.
2. Review closes with no change — if the income matches, or the difference is under the IRS threshold, nothing else happens. No notice, no new balance. Many 922 entries end right here.
3. CP2501 (sometimes first) — a softer letter asking you to explain a possible mismatch before a formal proposal. Not always issued.
4. CP2000 notice — the IRS proposes additional tax, plus penalty and interest, based on the income it says you left off. You get 30 days to agree or disagree.
5. CP3219A — Notice of Deficiency — if you don't respond to the CP2000, this "90-day letter" formally proposes the tax and gives you the right to petition the U.S. Tax Court.

So the 922 is your early warning. It's the quietest, cheapest moment in the whole process to get your documents in order — long before a deadline is attached to anything.

What happens if you ignore the review

You can't really "ignore" a 922 because it doesn't ask you to do anything. But ignoring the CP2000 that may follow is where people get hurt. If you don't respond to a CP2000 by its deadline, the IRS issues a CP3219A Notice of Deficiency. Miss that 90-day window and the proposed tax is assessed automatically — and then the collection notices begin, with penalties and interest compounding the whole time.

The IRS's automated systems don't wait for a human to review your file. They escalate on a schedule. That's exactly why acting at the 922 stage — before any clock starts — is so valuable.

How to respond, step by step

1. Pull your wage and income transcript. This shows every income document the IRS has for that year. Our walkthrough on the IRS wage and income transcript shows how to get it. Compare it line by line to what you filed.
2. Find the gap. If you spot income you genuinely missed, note the amount and the form. If everything matches, the review may simply close on its own.
3. Gather proof. Bank statements, brokerage forms, and 1099s. If some "unreported" income was actually offset by basis or deductions (for example, the cost of stock sold), collect those records too — a 1099-B often reports gross proceeds, not actual gain.
4. Don't rush to amend. A code 922 by itself is not a reason to file an amended return. Wait to see whether a notice arrives; an unnecessary amendment can cross wires with the AUR process.
5. If a CP2000 comes, respond by the date on it. You can agree, partially agree, or disagree with documentation. Our guides on the CP2000 notice and how to disagree with a CP2000 walk through both paths.

A quick worked example

Say you filed reporting $62,000 of wages. A brokerage sent the IRS a 1099-B showing $8,000 in stock proceeds you forgot to include. Code 922 posts while AUR reviews it. A CP2000 later proposes tax on the full $8,000 — but you bought that stock for $7,400. Once you respond with your purchase records, the taxable gain is only $600, not $8,000. The proposed bill can shrink dramatically. That's why the documents matter, and why you never just pay a CP2000 because it looks official.

For broader background on how this matching system works, see the IRS's own explainer at Understanding your CP2000 notice, the IRS overview of getting your IRS tax transcript, and the independent Taxpayer Advocate Service if a notice ever stalls or goes wrong.

Code 922 questions, answered

This guide is general information, not tax or legal advice for your specific situation. Eligibility for IRS programs depends on individual facts and circumstances; no outcome is guaranteed.

Related: CP2000 notice guide · CP2501 notice · how to read an IRS account transcript · or browse all guides.