IRS Notice CP49: Refund Applied to Prior Balance

What does an IRS CP49 notice mean?

A CP49 informs you that all or part of your expected tax refund was applied to a past-due federal tax balance you owed for another year. The notice shows how much of your refund was used, which year it paid, and any remaining refund or balance.

Why did you receive a CP49?

You had an outstanding federal tax liability from a prior period, so the IRS automatically offset your current-year refund against that debt under its standard offset authority.

How to respond to a CP49 notice

If you agree that you owed the prior balance, no action is needed; any leftover refund will be sent to you. If you believe the prior debt was already paid or is incorrect, contact the IRS with documentation. If the offset paid a spouse's separate debt, you may qualify for injured-spouse relief.

What happens if you ignore it?

The offset stands. If a balance remains after applying the refund, normal collection notices follow; if you were entitled to the full refund, failing to dispute means losing it.

Common resolutions

• No action if you agree
• Contact the IRS if you disagree

Related IRS notices

• CP39 — Refund Offset to Spouse's Debt
• CP14 — Balance Due
• CP21B — Adjusted Return — Balance Due