IRS Form CP49 is simply a letter indicating that an overpayment that you had was applied to a tax that you owe.

In simple terms, in common English, it means that you had a tax refund coming to you for a particular year, but you owe the IRS money from another year, and so they took your refund and instead of giving you a refund check, they applied it to the balance that you owe.

It’s important to note, and people screw this up all the time, that if you have a refund coming to you and you file more than three years late, you don’t get the refund and you don’t get any credit for it towards any other balances that you owe. I think that that’s a really unfortunate situation.

On the flip side, if you have a refund coming to you and you file that return late, you also have no penalties and interest because penalties and interest are calculated upon the amount that you actually owe.


A CP49 simply says, “Hey, you had a refund coming, but we snagged it and we put it towards a balance that you owe us.”

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