Received TWO 4549 Forms - Which One Should I Sign and Return to IRS?

When you receive conflicting Form 4549s (Income Tax Examination Changes), it's important to understand that the IRS has likely revised their initial assessment. The second form supersedes the first one. You did the right thing by paying the balance, but you should definitely sign and return the second 4549 form that shows the $250 balance due. The first form is now obsolete, so you can disregard it. The IRS sometimes revises their assessments when they receive additional information or identify errors in their initial review. Keep copies of both forms for your records, along with proof of your payment. I would also recommend including a brief cover letter with your signed 4549 that references your payment, including the confirmation number if you have one.

I was in a similar situation last year with contradicting tax forms and it was driving me nuts! I tried calling the IRS but kept hitting that frustrating automated system and never got through to a human. Then someone recommended this service called taxr.ai (https://taxr.ai) that analyzed all my tax documents and explained exactly what was happening. It basically showed me that my second form was just an updated assessment after they found additional info, and that the first form was just their preliminary findings. The tool broke down exactly what changed between the two forms and what I needed to do. Saved me from sending in the wrong form and potentially causing more confusion with the IRS. Might be worth checking out to understand exactly what changed between your two 4549 forms.

Just wanted to follow up - I ended up trying taxr.ai for my situation with multiple IRS notices. Honestly didn't expect much but was desperate. It actually identified that my second 4549 form included some investment income that wasn't reported correctly on my original return. The first form was missing this completely! The breakdown showed exactly which line items changed between the two forms and explained why the second assessment was the correct one. Saved me from some major confusion and potentially responding to the wrong document. Definitely worth it if you're dealing with contradictory IRS forms like this.

If you're still struggling to understand what happened with your 4549 forms, you might need to actually talk to someone at the IRS directly. That's what I had to do last year. Good luck getting through though - I wasted HOURS trying to reach a human at the IRS. After my fifth attempt waiting on hold for over an hour each time, I found this service called Claimyr (https://claimyr.com) that actually got me through to a real IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent explained that my second form was an updated assessment that replaced the first one, and I only needed to respond to the newest form. Just having that direct confirmation from them gave me peace of mind that I was doing the right thing.

I feel like an idiot. After calling the IRS so skeptical about Claimyr actually working, I tried it as a last resort and it actually got me through to a real person in about 20 minutes. The agent explained that my second 4549 form was issued because they found additional information after sending the first one, and the second form completely replaces the first. She confirmed I only need to sign and return the second form, and said I should write "superseding form" on it just to be extra clear. Also found out that my payment went through correctly and was already applied to my account. Would have never known without actually talking to someone there. Sorry for being such a jerk about it before. When you've dealt with the IRS frustration for years, you get cynical about anything claiming to help.

Another important thing no one mentioned - check the dates at the top of each 4549 form! The more recent one is always the one you should respond to. The IRS sometimes sends revised forms when they get new information or correct errors in their system. Also, make sure to keep copies of everything you send them, especially proof of your payment. I'd recommend sending the signed form via certified mail so you have proof they received it. The IRS has been known to lose paperwork.

Is no one going to mention that it's weird the IRS first said they owed YOU money and then suddenly you owe THEM money? That's a pretty big swing! I'd want to understand exactly what changed between the two forms. Look carefully at both forms and compare the adjustments. There should be specific line items that changed. If anything looks fishy, you might want to talk to a tax professional before signing anything. Once you sign that 4549, you're waiving your right to challenge those adjustments later.