IRS notice CP49
CP49 notice: your refund was used to pay a tax debt
A CP49 means the IRS applied all or part of your refund to a tax debt you owe. Whether you need to do anything depends on what is left: a remaining balance to pay, part of the refund still coming to you, or a debt that was not yours.
If you still owe after the refund was applied
Pay the remaining balance; paying online is fastest. If you already have a payment plan for that tax year, keep making the payments. If you cannot pay now, the IRS lists a payment plan, an offer in compromise and a temporary delay of collection as options for those who qualify.
If you already set up a payment arrangement for the balance, the IRS says to disregard the notice.
If only part of the refund was used
The IRS says you will receive a check for the rest within three weeks, unless you owe other taxes or debts it is required to collect.
If you paid the whole balance in the 21 days before the notice and your account now shows a credit, the IRS refunds it, again provided you owe nothing else it must collect.
If the debt was your spouse’s
If the refund on a joint return went to a tax debt that belongs only to your spouse, and you do not owe any taxes yourself, you may be able to claim your share of the refund by filing Form 8379, Injured Spouse Allocation.
If you disagree with the notice for any other reason, call the number on it, with your tax return or amended return to hand.
Returns to file before you can set up a plan?
The IRS generally wants every required return filed before it agrees to a long-term payment plan, and a notice can be the first sign that a year is missing. USTAXX prepares current and past-due returns, one year at a time, so the account is complete. We are an IRS Authorized e-file provider and work with clients remotely through a secure portal, by phone or video, and in person at our office in Naperville, IL.
Questions people ask
Why did the IRS take my refund?
Because you had a tax debt. A CP49 tells you the IRS applied all or part of your refund to it, and shows what, if anything, is still owed.
Will I get the rest of my refund?
If only part of it was used, the IRS says the remainder should arrive by check within three weeks, unless you owe other taxes or debts it is required to collect.
My refund paid my spouse’s debt. What can I do?
If you do not owe any taxes yourself, you may be able to claim your share of the refund by filing Form 8379, Injured Spouse Allocation.
Where these rules come from
- IRS: Understanding your CP49 notice
- IRS: About Form 8379, Injured Spouse Allocation
- IRS: Payment plans and installment agreements
- IRS: Publication 594, The IRS Collection Process
General information, current when written, not advice about your situation. Fees and forms change; the official pages above are the authority.