Key Points of IRS CP49 Notice
When reviewing the CP49 notice, you'll see the specific amount of your refund used to reduce your debt. If there's still a tax debt after applying your refund, the notice will tell you exactly how much you owe; if the refund was sufficient to pay the debt, any additional refund due to you over the amount used to pay your tax debt.
How to Respond to IRS CP49 Notice
Upon receiving this notice, you should thoroughly review the adjustments to ensure they align with your records. Make sure to update your tax records with this new information. If there is still an outstanding balance, be aware that you must still pay this amount. If you spot any discrepancies or need more information, contact the IRS using the contact information provided.
Possible Consequences of Not Responding
While the CP49 is primarily informational, ignoring any remaining balance in the notice can lead to additional interest and penalties.
When to Seek Professional Help
We can help! Our team of experts can offer invaluable advice and represent and resolve your situation with the IRS on your behalf.
Frequently Asked Questions (FAQs)
What if my refund was more than my tax debt?
Can I designate which tax year my refund is applied to?
Can I have more than one POA?
Conclusion
The IRS CP49 notice is an important piece of communication indicating that your tax refund has been used to offset your existing tax debts. Understanding this notice ensures you are up-to-date with your tax obligations and aware of any further actions you may need.
