What year is the IRS asking about? If it's before 2020, line 7 of Form 1040 is something different.
Is the $49 on Form 1040 line 7 a gain (positive number) or a loss (negative number)?
Does the IRS notice say that they think line 7 should be a higher amount, or that the $49 should be somewhere else, not on line 7 at all? Does the notice say there are errors on your tax return anywhere else besides Form 1040 line 7?
Where did the $49 on line 7 come from? If you're talking about 2020 or 2021, and the box on line 7 is checked, the $49 should be capital gain distributions from box 2a of a Form 1099-DIV that you received. Is that where it came from? Does the 1099-DIV have any amounts in boxes 2b, 2c, or 2d? If the IRS is saying that they will increase your tax or reduce your refund, that means they think that line 7 should be more than $49, or that the $49 is ordinary income, not a capital gain distribution. Did you get any other 1099-DIV forms with amounts in box 2a that you forgot to enter? Did you mistakenly enter the amount from 1099-DIV box 2a incorrectly, or enter an amount in box 2a that was actually in a different box on the 1099-DIV?
If you're talking about 2020 or 2021, and the box on line 7 is not checked, there should be a Schedule D in your tax return, and line 16 on Schedule D (at the top of page 2) should be $49. Is that what you have? If the IRS is saying that it should be more than $49, you may have entered a Form 1099-B incorrectly, or omitted investment sales that were on a 1099-B.
Also note that forms 1099-DIV or 1099-B might be sections of a consolidated brokerage statement, rather than separate forms.
