IRS Letter CP49
Why are you receiving this letter?
You received IRS letter CP49 because the IRS applied your refund toward a previous year’s tax balance.
- No further action is required if you have an arrangement with the IRS.
- You owe less than $10,000 and would like to set up an installment agreement. You can call the number on the top right hand corner of your IRS letter and the IRS will give you up to 72 months to pay back the taxes.
- You should have received a refund because your spouse owes the taxes and you don’t.
- Your tax balance is less than $25,000.
- You don’t have unfiled tax returns.
- You are unable to pay back the taxes in full.
- You would like to discuss this with someone not working for the IRS to understand what is going on and the options you have.
- You should have received a refund because your spouse owes the taxes and you don’t.
- Your tax balance is greater than $25,000.
- You have unfiled tax returns.
- You are unable to pay back the taxes in full.
- You would like to negotiate down the tax balances.
What you should do?
Read notice CP49 carefully. It will explain which tax year and tax form the IRS used your refund to pay. In our Notice example, the IRS applied a 2006 Form 1040 overpayment to a 2004 Form 1040 outstanding tax balance.
If you disagree, contact the IRS at the telephone number listed at the top right corner of the Notice to find out if you owe any back taxes. Contact our office if the IRS says you owe taxes, but you believe this is an error.
If you agree, there is a remaining tax balance due and owing to the IRS.
What can you expect next?
If the refund does not fully pay the outstanding tax balance, then IRS letter CP49 considered a tax bill. The IRS asks that you pay the balance due in full.