Got Form 4549 with Notice of Deficiency from IRS - Balance Shows $0 Online

This happens more often than you might think. The IRS computer systems don't always sync up in real-time. Form 4549 is an Income Tax Examination Changes form that shows proposed adjustments to your return and the resulting tax changes. The reason your online account shows $0 is likely because the proposed deficiency hasn't been officially assessed yet. There's a process they follow - first they issue the notice of deficiency, then you have a period (usually 90 days) to either agree to the changes, provide documentation to dispute them, or petition Tax Court. Only after this period expires or you agree to the changes will the amount actually be assessed and show up in your online account. Don't ignore these notices! Look carefully at the Form 4549 to see what adjustments they're proposing. If you agree with their findings, you'll need to sign and return the form. If you disagree, you'll need to respond within the timeframe they provided.

I went through something similar last year with a CP2000 notice that later turned into a Form 4549. After spending hours trying to figure it out myself, I found this AI tool called taxr.ai (https://taxr.ai) that actually saved me a ton of headache. It analyzed my notice and explained exactly what was happening - turns out the IRS was saying I didn't report some investment income, but their numbers were off. The tool showed me what documents I needed to respond with and even helped draft a response letter. The interface is super straightforward - you just upload your notice and it breaks everything down in plain English. What I really liked was how it explained the timeline and process - exactly what the comment above is talking about with the assessment delay. Definitely less stressful than trying to piece together information from different sources.

Just wanted to follow up that I tried taxr.ai after seeing it mentioned here. It actually worked really well for my Form 4549 situation! I uploaded my notice and it immediately highlighted that the IRS was disputing some of my business travel expenses and home office deduction. The tool walked me through exactly what documentation I needed to gather (receipts, calendar entries showing business purpose, home office measurements, etc.) and helped me draft a response letter that addressed each point the IRS raised. Definitely worth checking out if you're confused by these notices. Made the whole process much less intimidating than I expected.

If you need to actually speak with someone at the IRS about this (which is probably a good idea), good luck getting through their phone lines. I spent 4 days trying to get someone on the phone about my notice. Finally, I used this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 15 minutes. They have this system that navigates all the IRS phone menus and waits on hold for you, then calls you when an agent is actually on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with explained that my notice wouldn't show up in my online account until after the response period, exactly like someone mentioned above. But she also confirmed my specific case details and explained exactly what I needed to do next, which was super helpful.

I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I was so frustrated with my own IRS situation that I decided to try it anyway. The service actually worked exactly as described. I got a call back in about 45 minutes (was a busy day apparently), and suddenly I was talking to a real IRS person. The agent confirmed that my Form 4549 adjustments wouldn't show up in my online account until either I agreed to them or the 90-day response period ended. She even looked up my specific case and gave me the exact date when my response was due - turns out I had less time than I thought! Definitely worth it just for the peace of mind of talking to someone who could see my actual file.

I work in tax resolution (not an IRS employee though) and I can confirm what others have said. The Form 4549 is showing PROPOSED changes, not finalized assessments. The IRS gives you time to respond before officially assessing the tax. A few tips: 1. Check the notice date carefully - your 90-day response window starts from that date, not when you received it 2. If you agree with the changes, sign the form and return it 3. If you disagree, DO NOT SIGN IT - instead prepare a formal protest letter 4. Keep copies of EVERYTHING you send to the IRS 5. Consider sending any response via certified mail so you have proof of when it was received Also, sometimes these notices result from simple mismatches where income was reported in a different place on your return than where the IRS expected to find it. Don't automatically assume you owe the money.

I got a Form 4549 last year. The online account showing $0 is normal at this stage. One important thing nobody mentioned - check if there's a Form 870 included with your notice package. That's the "Waiver of Restrictions on Assessment" form they want you to sign if you agree to the changes. DO NOT sign that form if you disagree with their adjustments! Once you sign it, you're waiving your right to challenge the assessment in Tax Court. I almost made this mistake.