A CP49 notice tells you that the IRS used some or all of your tax refund to pay a federal tax debt you owe, usually for a different tax year. This is called an offset. It may be disappointing if you were counting on the money, but it is not a penalty and it doesn't mean anything new went wrong. Your main jobs are to check that the numbers make sense and, if you still owe, decide how to pay the rest.
Why you got a CP49
The law lets the IRS apply a refund to unpaid federal taxes before sending you any money. If your account shows a balance due for another year, the IRS applies your refund to it and mails a CP49 to explain what happened.
The CP49 is about federal tax debt. If your refund was reduced to pay other kinds of debt, such as past-due child support, a federal agency debt, state income tax or certain state unemployment debts, that is a different offset run by the Treasury's Bureau of the Fiscal Service (BFS) through the Treasury Offset Program. The BFS sends its own notice, and the IRS doesn't receive the details. If you didn't get a BFS notice, the IRS says to contact the BFS at 800-304-3107.
What the CP49 says
Look for:
- The refund amount from your return.
- The tax year or years the refund was applied to.
- How much was applied and whether any balance remains.
- Any amount still due and the due date, or any amount still being refunded to you.
- A phone number for questions.
What to do
- Compare the notice with your records. Make sure the refund amount matches your return and that the year it was applied to is one where you really owe. Your IRS Online Account and transcripts show balances by year.
- If a balance remains, pay it online, or set up a payment plan if you can't pay in full.
- If you already have a payment plan for that tax year, keep making your payments.
- If you already made a payment arrangement for the balance, the IRS says you can disregard the notice.
- If you disagree, call the number on your notice. Have your tax return or amended return and other paperwork ready.
Example: part of a refund applied. Say your 2025 return showed a refund of $2,150, and you still owed $1,375.40 for 2023. The IRS applies $1,375.40 to the 2023 balance, which pays it off, and $774.60 is left. The IRS says you'd receive that remaining amount within about 3 weeks, unless you owe other taxes or debts it's required to collect.
If you can't pay what's left
The IRS lists these options for those who qualify:
- A payment plan (installment agreement) to pay over time. See our payment plans guide and payment plan calculator.
- An offer in compromise, which settles the debt for less in limited situations. See our offer in compromise guide.
- A temporary collection delay if you can't pay anything right now. See currently not collectible status.
Interest and, in many cases, penalties continue on any unpaid balance until it's paid. Our IRS interest guide explains how that works.
If the refund went to your spouse's debt
If you filed a joint return and the IRS used the refund to pay taxes that only your spouse owes, you may be able to get your share back. The IRS says you can file Form 8379, Injured Spouse Allocation. "Injured spouse" relief is different from "innocent spouse" relief, which is for when you are being held responsible for tax on a joint return that you believe your spouse should owe. Read about the difference in our innocent spouse relief guide.
What happens if you ignore it
If the refund paid your balance in full, there's nothing more to do. If a balance remains and you ignore it, the IRS will keep sending balance-due notices, such as the CP14 and later the CP501, while interest and penalties grow. Unpaid tax debts can eventually lead to a federal tax lien or levy. Future refunds can also be applied to the debt until it's paid.
Is this notice real?
A real CP49 arrives by U.S. mail and refers to a refund on a return you actually filed. You can confirm by checking your account balance and transcripts in your IRS Online Account at irs.gov, or by calling the IRS at a number listed on irs.gov. A CP49 never asks you to pay with a gift card, wire transfer or cryptocurrency. See our IRS scams guide.
Frequently asked questions
Can the IRS take my refund without warning me first?
The IRS applies refunds to existing federal tax debts and then sends the CP49 to explain. You may have received earlier bills about the balance. Check your transcript if you weren't aware of the debt.
What happens to the rest of my refund?
The IRS says you'll receive the remaining amount within 3 weeks, unless you owe other taxes or debts it's required to collect. See our refund delays and offsets guide.
I paid my balance recently. Why did I still get a CP49?
If you paid your full balance within the past 21 days and your account now shows a credit, the IRS says it will refund it as long as you owe no other taxes or debts it must collect.
My refund went to a child support debt, not taxes. Who do I call?
That's a Treasury Offset Program offset, not a CP49 offset. The Bureau of the Fiscal Service handles it and sends its own notice. You can call the BFS at 800-304-3107.
Can I get my refund back if I set up a payment plan?
Generally, no. The Form 9465 instructions say any refund will be applied to what you owe even if you have an installment agreement, and that you must still make your regular monthly payment. If the offset is causing serious financial hardship, contact the Taxpayer Advocate Service to ask about options.
Sources
IRSV.com is an independent guide and is not affiliated with the IRS. This page is general information, not tax or legal advice. Rules change; confirm details on IRS.gov or with a tax professional. Found an error? Tell us.