Notice CP49 from the IRS states, "We applied your [year] Form 1040 overpayment to an unpaid balance" or "Your [year] Form 1040 overpayment was applied to tax you owe". The IRS uses Notice CP49 to inform you they have taken your refund to be applied to other taxes. This may be a surprise to many people who weren't aware of the problem or its effects. It is obvious the IRS believes you owe the taxes. Yet, often no tax is due.
Response to Notice CP49
Your problem can be resolved in several different ways, depending on the facts. So, it is important to investigate your specific case before reacting! You need to get the IRS file & compare it to your records. You could call the IRS at 1-800-829-1040 and order your Account Transcripts which will tell you what is happening with your IRS file. But, avoid talking to IRS Collections - you're not ready for them yet.
If you owe other taxes an Action Plan needs to be devised to help you escape the liability. We'll review the Account Transcripts & your records to construct a direct plan to eliminate or reduce the debt.
Usually, you will be required to complete a Form 433A or Form 433F, which can be very difficult. The IRS requests a lot of personal information from you. They also demand the evidence be arranged correctly. If not, they will continue to enforce collection.
Fortunately, we have designed Webinars for you to prepare these forms to your advantage. Please visit the "Webinars" page for more information!
If your refund was taken because of the debt of a spouse or ex-spouse, you might file for Innocent Spouse relief or for a state divorce court adjustment, if appropriate.
Further Action
To prevent any further refunds from being seized make sure you don't overpay your current taxes by adjusting your Form W-4 with your employer.
TaxHelpLaw repairs the old and new taxes to get refunds when due! Please follow the IRS Notice CP-49 Prep Steps and see Mr. Hopkins in Pueblo or Colorado Springs before proceeding!
Various IRS Notices CP49:
