A CP49 notice is one of those “sometime later” notices, a part of  automated correspondence series, used by Internal Revenue Services (IRS) to speak with individual citizens concerning discrepancies related to tax returns. Getting one implies you have got a tax refund with your latest return, however the IRS held onto it to fulfill outstanding duty obligations. This is the notice generally sent around the time when one files a tax return form.

CP49 is possibly sent assuming an individual owes back taxes that were evaluated but due to a tax refund on the most recent return one filed. It can come as a disagreeable shock in the event that you were expecting a tax refund and didn’t get it. There are millions of tax refunds processed every year, wherein the IRS will undoubtedly commit a few errors.

They likewise need to make collections as productive as conceivable without charging you or taking the time and desk work to put you on a payment plan, so it’s more straightforward for them to simply hold onto any future tax refunds really. CP-49 notification is sent sometime later, so that one can’t stop the automated seizure when it works out assuming you previously had a due balance. While you can answer the notification assuming you feel they unjustifiably took your tax refund, you can’t stop the initial adjustment.

To keep it away from getting processed, you can maintain withholding your taxes and additionally assess payment installments so that you don’t get a tax refund that could be seized. On the other hand, you can take care of your taxes to be paid in advance assuming that you can, and be mindful of you owing the charges. We just discussed things briefly, and now let us look at things in more detail.

Why does the IRS send CP49 Notice?

At the point when you filed your most recent annual taxes, you get to know that you deserve some kind of a refund. Nonetheless, the IRS says there are some taxes you need to still pay from the past. This is the notice telling not to expect a direct return but instead the IRS would utilize that cash to settle your funds to be paid.

This isn’t an IRS review or a proposed change. You could get CP49 notice after a review. In such cases, the IRS has resolved what you owe.

How to have a CP49 Notice Verified?

You will possibly get IRS Notice CP49 assuming that you owe the IRS money. As a rule, you should definitely realize that you do. Never call the number on an IRS notice you don’t know about, supposing it’s a scam number going to the tricksters.

What needs to be done if you owe the IRS Money?

In the event that you owe the IRS cash, there is very little you can do. The IRS will keep your tax refund in essentially all circumstances. You ought to likewise demand tax transcripts or check records online to check whether you actually owe cash.

Assuming you should pay the money owed as quickly as time permits, it would lessen punishments and penalties. You can face a possible tax lien on a federal level, it’s normally to take advantage to make payment with the IRS for the leftover taxes. Penalties and punishments will continue to gather assuming you sit tight for them to take your refund in later years, and down the line you may likewise confront a potential government charge lien assuming you owe a lot for a really long time.

How to Stop the IRS from Taking Your Refund?

The best way to prevent the Internal Revenue Service from taking your refund is to try not to have one. You should adjust your saved portion or assess tax payments from the start of a year. This surely guarantees you owe a little when it is the ideal time to file your return.

What needs to be done if you don’t owe the IRS Money?

If you didn’t owe the IRS cash, you ought to promptly call them. Furthermore, demand your records, or view your records online to see what fiscal year you say you owe for. Possible explanations behind a surprising CP49 Notice include:

  • IRS blunders.
  • Fake notices.
  • Fraud related to identity like somebody documenting a false assessment form under your data.
  • Never receiving CP49 notices or letters in the past from the IRS letting you know owing extra tax.

Your choices will fluctuate in light of what caused the CP49. You don’t need to battle the CP49 right away, however, rather you need to challenge the first IRS notice or IRS letter that prompted the tax obligation. See a rundown of IRS notices and letters and decide how to challenge them.

CP49 Notice From IRS: Refund Applied to Back Taxes or Debts

Whenever the IRS utilizes some or all of your tax refund to take care of assessments from an earlier year, leaving you with a lower sum than you expected, you will get a CP49 notice. Getting IRS notice in the form of CP49 when expecting a major refund can be agitating – particularly when you had plans for how to spend that tax refund in cash. If in case the IRS made a blunder, a tax professional assists with sorting out what the IRS has done and question the dispute related to tax refund.

What could be the possible reason for receiving a CP49 Notice?

You got a CP49 notice on the grounds that the IRS held onto your tax refund to apply to back taxes. The IRS sends a CP49 letter ahead of your tax refund processing as a heads-up that you will get less refund than you were expecting, or maybe no refund by any means.

Does a CP49 Notice Specify what Debts the IRS Offsets with the Tax Refund?

Your CP49 notice records your obligations, the sums, and years in which they caused them. Assuming that you need more particulars, you can contact an IRS professional by calling the number on a CP49 notice. Other than government back taxes, the IRS could balance state tax associated with income, state debts associated with unemployment, kid support, and other taxes like student loans.

Could a Dispute be Raised against a CP49 Notice if one disagrees?

Indeed, you can debate regarding CP49 notice by calling the number recorded on the CP49. Before you call, you should be having an undeniable case ready for why the IRS should not hold onto your tax refund, and you likewise have complete documentation – duplicates of earlier years’ tax forms, payment receipts of taxes, and so forth – to help your argument stand strong.

How much Time do you have to Respond to a CP49 Notice?

You have 60 days from when you get a CP49 notice to raise a question, however the prior you start this cycle, the better. Besides the fact that beginning early assists you with trying not to face any cutoff times,  the sooner you file a CP49 dispute, the sooner you get the things reversed and accept a full tax refund.

If CP49 Notice Shows only a Part of  Tax Refund being Seized, will the IRS send what is left over of the Refund?

Assuming a CP49 notice demonstrates the IRS utilized just a piece of your tax refund to cover back taxes from an earlier year, you will get the rest of your refund like typical. You need to make no further move to get your IRS refund.

What can really be done if Tax Refund was Seized and you still owe the IRS Back Taxes?

Assuming a CP49 notice shows you actually owe back taxes after the IRS applied your refund to neglected taxes, make arrangements and the sooner, the better, as you will cause interest and penalties to accrue consistently for neglected taxes.

If you can’t stand to pay the everything you the owe the IRS, get in touch with an experienced professional who can assist with working out an alternative course of action with the IRS, like an Offer in Compromise (OIC), IRS payment plan/portion understanding, or CNC status (Currently Not Collectible).

Can an Individual Qualify for Injured Spouse if a CP49 Notice Indicates  Tax Refund Was Used to Pay for Spouse Back Taxes?

If you can prove the fact that your life partner or mate is the person who caused the tax debts to be recorded on a CP49 notice, then, at that point, you could meet all requirements for injured spouses. Demand injured spouse help by submitting IRS Form 8379 via mail or by electronic means.

How does a CP49 Notice differ from a CP16 Notice?

A CP49 notice and CP16 notice are basically the same with just one basic difference. A CP16 notice not just illuminates on the tax refund  utilized to take care of taxes, but even  blunders on a tax refund form. A CP49 notice is sent rigorously to tell  that some or all of your tax refund is being seized by the IRS.

3 Ways to Respond to a CP49 Notice

You can contact the IRS by mail or phone when you get a CP49 notice, taking note of the following:

  • I agree with the tax evaluation.

Assuming you agree, you do not really need to answer. However, if the IRS just required a piece of your tax refund to fulfill the assessment obligation and you didn’t get a check for the rest, you should reach them. The equivalent is valid for your spouse tax commitments.

  • I agree with the tax evaluation, yet can’t pay.

Assuming you still actually owe tax charges even after tax refund was seized, contact an IRS professional expert in regards to tax burden goal.

  • I disagree with the tax evaluation, and can’t pay.

You are probably not going to get your tax refund in full unless there is evidence you got the CP49 notice accidentally. You surely need to get in touch with an IRS handling tax firm or individual for accessing the IRS dispute choices.

CP49 Notice is no Mistake by any means

If you previously paid all your tax dues prior to filing your tax return, the IRS might send you this kind of a notice by mistake. Simply contact the IRS immediately and show evidence of payment dues already cleared and the specific sum you expected. The CP49 notice isn’t quite as complicated as other IRS notices, despite the fact that it very well may be a reality check when expecting a tax refund and didn’t get it.

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Mr. Michael D. Sullivan

Michael D. Sullivan is the founder of MD Sullivan Tax Group. He had a distinguished career with the Internal Revenue Service for 10 years. As a veteran IRS Revenue Officer / Agent, he served as an Offer in Compromise Tax Specialist and Large Dollar Case Specialist.

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