The IRS notifies you with CP92 that they have taken your refund to pay for other taxes. The notice invites you to Appeal (Collection Due Process) this seizure. However, it is not always wise to appeal this IRS action, mainly because you extend the statute of limitations for all purposes, even if the appeal is unsuccessful. Plus, appeals are often futile. See Appeals Prep Steps.
Respond to Notice CP92
Rather than aggravate your problem with unnecessary procedures it is usually better to find methods to reduce or eliminate the debt. Then, initiate those procedures. Don't follow the IRS advice & make your situation worse!
Instead, it is smart to use other procedures, such as Court, penalty abatements, claims for refund or even amended returns to reduce or dissolve this tax liability. Or, simply follow the normal channels of IRS Collection to resolve the account. IRS Revenue Officers can accomplish as much for you (& more in some cases) than Appeals.
You might get a refund of these state taxes seized. But, don't be surprised if it is lost. Please review the Collection Prep Steps for more detailed information, forms & tactics!