Form 4549, Income Tax Examination Changes
IRS Definition
Form 4549, Income Tax Examination Changes, is used for cases that result in:
- Agreed income tax changes. Normally, the IRS will use the form for the initial report only, and the IRS reasonably expects agreement.
- Adjustments to income or deduction items don’t affect or warrant a change in tax liability or refundable credits on the return audited. In such cases, the IRS will notify you of, or secure your agreement to any adjustments, which affect subsequent year returns.
More from H&R Block
At the end of an audit, the IRS sends you a letter along with Form 4549 explaining the proposed changes to your tax return. Changes are typically a result of the IRS not accepting your documentation or explanation of one or more items on your tax return.
Depending on how many years were audited, the form can show the results of up to three years of audits. The form also shows any adjustments to the income on your return and the changes to your taxable income, credits and your total taxes due. If there was an increase in the amount of taxes due, penalties and interest will also be shown on the form. You have the right to appeal the auditor’s adjustments.
Get help from an IRS expert
H&R Block’s experts can solve any IRS problem, no matter how complex.
Related Information
Learn what the IRS is looking for during an audit, the steps you should take to prepare for an IRS audit, and when it's best to get expert help.
The IRS grants four types of penalty relief, but many taxpayers don't ever ask. Learn how to request penalty abatement from the IRS.
Find out how long the IRS has to audit your return, when most audits normally start, and how to know if you've been selected for audit.
Separate fact from fiction when it comes to IRS audits. Learn what causes tax audits, what happens during an audit, and what to do if you get an IRS letter.
How long you can expect your IRS audit to last depends on the type of audit and the scope. Learn how to efficiently wrap up an audit from the tax experts at H&R Block.