IRS notice
IRS Notice CP49: Your Refund Was Used to Pay a Tax Debt
The IRS used all or part of your refund to pay a tax debt you owe; the notice shows how it was applied and any amount still due.
Read it and keep it
The IRS page sets no response date for a CP49; if a balance remains, pay it as soon as you can to limit interest, and an injured spouse claim has its own filing window.
A CP49 generally means the IRS used all or part of your refund to pay a federal tax debt. If a balance remains, pay it or set up a payment plan; if part of the refund is left, it should arrive by check. If the debt belonged only to your spouse on a joint return, you may be able to claim your share with Form 8379.
What this notice is telling you
- Your refund was reduced, or eliminated, to pay federal tax you owe for another period.
- The notice shows how much was applied and whether any balance is still owed.
- If only part of the refund was used, the rest should arrive by check within about three weeks, unless you owe other federal taxes or debts the IRS must collect.
- If you already have a payment arrangement for that tax, the IRS says to disregard the notice and keep paying.
What to do
Match the debt to a year you recognize
Find the tax period the refund was applied to. If you don't recognize it, check your Online Account or account transcript before assuming the IRS is wrong.
Check whether anything is still owed
If the refund covered the full debt, you may have nothing more to do. If a balance remains, pay online or set up a payment plan.
Decide whether you're an injured spouse
On a joint return, if the debt was your spouse's alone and you weren't responsible for it, you may be able to recover your share of the refund with Form 8379, Injured Spouse Allocation.
If you disagree, call with paperwork ready
Call the number on the notice with your tax return or amended return in hand.
CP49 versus a Treasury offset notice
Not every reduced refund comes with a CP49. When the IRS applies your refund to federal tax you owe, it is an adjustment to your account and the IRS explains it in its own notice. When the refund goes to a non-tax debt, such as past-due child support, a federal agency debt, state income tax or certain state unemployment compensation debt, the Bureau of the Fiscal Service handles it under the Treasury Offset Program and sends its own notice naming the agency that received the money. Questions about a non-tax offset go to that agency, not the IRS.
Claiming your share as an injured spouse
- You may qualify if you filed jointly, your share of the refund was applied to your spouse's past-due debt, and you weren't responsible for that debt.
- File Form 8379 on its own after the offset, mailed to the IRS service center where you filed the original return, or attach it to the joint return when you file.
- File within three years of the return's filing date or two years of the date the tax was paid, whichever is later.
- A Form 8379 filed by itself can take up to eight weeks to process; file a separate form for each year.
- In community property states, the refund is divided under state law.
If the refund didn't cover everything
| Your situation | What the IRS suggests |
|---|---|
| You can pay the rest now | Pay online through the IRS payments page |
| You can't pay it all | Apply for a payment plan (Form 9465), or ask about a temporary collection delay |
| The balance is more than you can ever pay | Look at an offer in compromise (Form 656-B booklet) |
| You already have a plan for this tax | Keep making those payments and disregard the notice |
Want a CPA to deal with it?
Bring the notice to a free consultation, in person on James Island or by video. We read it with you, tell you what it means for your account and, if you want us to, take over the response once you sign Form 2848.
IRS & SCDOR letters — Find your notice number below, see what it means and which date matters, then let a licensed CPA deal with the IRS or SCDOR on your behalf.
By Haigler CPA Group. Updated . Notices are revised from time to time, so go by the wording and dates on your own notice. The information on this site is general in nature and is not tax, legal, or accounting advice for your situation. Tax law changes and the right answer depends on facts we would need to review with you. Please speak with a qualified professional before acting on anything you read here.
Questions about CP49
When will I get the rest of my refund?
If only part of your refund was used, the IRS says the remaining amount should arrive by check within three weeks, unless you owe other federal taxes or debts it must collect.
The debt was my spouse's from before we married. Can I get my part back?
If you filed jointly and weren't responsible for the debt, you may be able to claim your share with Form 8379, Injured Spouse Allocation. The IRS calculates how much of the refund is yours.
Why doesn't the CP49 mention my child support offset?
Offsets for non-tax debts like child support are handled by the Bureau of the Fiscal Service, which sends its own notice. A CP49 covers refunds applied to federal tax debt.
I already have a payment plan for that tax. Do I need to do anything?
The IRS says that if you already have a payment arrangement, you can disregard the notice. Keep making your plan payments as agreed.
Other notices
- CP14: Balance due on your tax accountThe IRS's first bill after a return shows tax that was not fully paid: the amount, the due date and how to pay.
- CP521: Monthly payment plan reminderA reminder that your monthly IRS payment plan installment is due by the date shown, with the amount and how to pay it.
- CP71C: Annual reminder of a balance you still oweAn annual IRS reminder of the tax, penalties and interest you still owe, with a warning about passport denial for seriously delinquent debt.
- IRS notice lookupEvery IRS notice carries a code. Find yours below to see what it generally means, which date matters, and what to do before that date passes.
Talk to a tax expert
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