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CP49- The IRS overpayment letter

Just received a CP49 letter?

The IRS has different forms of notice which they send out to taxpayers for different purposes. Some of these notices may come as a surprise to the taxpayer while others do not, as the taxpayer may already be aware of the reason for the notice.

The CP49 (otherwise known as the IRS overpayment letter) is one of the automated notices the IRS sends. The IRS uses this notice to communicate to the taxpayer that they should have received a tax refund along with their recent tax return, but they didn’t get it because the IRS diverted the refund to settle the taxpayer’s outstanding debt.

The IRS notice cp49 is usually sent out close to the time an individual files their tax return. Although a CP49 letter is generally harmless, it may be bad news to you especially if you had been looking forward to getting a tax refund and it didn’t come.

However, you may still be able to get your refund. As efficient as the IRS is, they still make mistakes, and sometimes, they just want to make collections easier and more efficient, so they would rather just seize your refunds immediately they see them.


Can I stop the Automatic Tax Refund Seizure?

The short answer to this is No.

You can not stop the IRS from diverting your tax refund to settle your tax debt. This is because when you receive the IRS cp49, the IRS must have already carried out the collection. However, you are at liberty to respond and let the IRS know that they unfairly took your refund.

It is somewhat possible, however, to prevent it from happening in the first place.

You can do this by adjusting your estimated tax payments or tax withholding such that you don’t receive a tax refund that could be seized. Another solution is to pay off every balance due you have, beforehand.


How to Respond to a CP49 Notice

If you receive the IRS cp49, you should respond. Nothing good ever comes out of ignoring IRS notices. Especially notices that require urgent responses.

In the instance of IRS notice cp49, a response is not really required or urgent. Especially if you agree with what the IRS has done.

However, in some cases, you may still need to contact the IRS, for instance, in cases where the IRS used part of your tax refund to satisfy other tax debts and didn’t send you a check as a reminder. This also applies if your tax refund was seized to pay your spouse’s tax obligations.

If you disagree with this tax notice, you can contact the IRS by phone or mail. However, we must reiterate that it is unlikely that you’ll get your tax refund except in a case where there is sufficient proof you got this notice by mistake.

You can read up more information or reach the IRS via their website www irs gov cp49 or Alternatively, you can reach out to a qualified tax professional to explain the notice better to you.

The IRS cp49 is not a complex notice. It is only unpleasant when you have been expecting your tax refund and you’re being told that you won’t get it. Call us at 888-585-8629 for more information about how to recover your wrongly diverted tax refund.


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Internet subscribers, users, and online readers are advised not to act upon this information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this website is not intended to be used for the purpose of avoiding penalties, of any kind, under U.S. federal tax laws.