Employment Tax Examination Resulting in Both Change and No-Change Periods

In general, when an agreed examination results in changes to some quarters and no change to others, treat the employment tax case as an agreed "change" case. One letter and one report will be issued that addresses the no-change periods, and the periods with the changes, following the procedures outlined in IRM 4.23.10.10.3 (9). Specifically, the following guidance should be followed:

Always use Form 4666 to summarize all examined periods.

Report the no-changes in the summary section of Form 4666 by entering the period and return form number, writing "No-Change" in the tax column, and entering a dash in the page column.

Do not complete Forms 4668 for the quarters no-changed.

Enter the adjustment information on Form 4668 for only the quarters being changed. On a multiple-year examination, if no quarter during the year is changed, then no Form 4668 is necessary.