CP42: Your Refund Was Used to Pay a Past Tax Debt

Why you might get this

• You, your spouse, or a former spouse still owed taxes from a different tax year.
• The IRS took part of your refund and put it toward that older balance.
• There may be money left over after the IRS applied the amount owed.

The deadline

This notice is mainly for your information, and it says you don't need to do anything right now. There is no action deadline printed for you to meet. If you disagree, respond by reaching out using the contact information on your notice — sooner is better so you can protect your options.

This notice doesn't carry a fixed response deadline, but it still deserves attention — see what to do below.

What to do

1. Read the notice carefully to see exactly how much of your refund was used and how much is left.
2. If part of the refund is yours and was used to pay your spouse's debt, look into filing Form 8379, Injured Spouse Allocation, to claim your share.
3. If you disagree, write or call the IRS using the contact details on your notice, and include proof like cancelled checks or an amended return.
4. Watch for a check from the IRS for any part of the refund that was not used.

What happens if you ignore it

This notice doesn't ask you to do anything, so ignoring it usually causes no harm — the IRS already applied your refund. But if you disagree or believe part of the refund is rightfully yours, doing nothing means you may miss the chance to get that money back.

If you think part of the used refund belongs to you (and not the spouse who owed the tax), consider Form 8379, Injured Spouse Allocation. You may also qualify for free help from the Taxpayer Advocate Service or a Low Income Taxpayer Clinic if you need support.

What a CP42 Notice Means

If you got a CP42 notice, the IRS is telling you that it lowered your refund and used part of it to pay off taxes that you, your spouse, or a former spouse owed for a different year. In plain terms, money you expected back was redirected to cover an older tax debt.

The good news: you usually don't have to do anything. The notice explains how much of your refund was used and how much is left. If any of your refund wasn't needed to cover the debt, the IRS will send you a check for the rest.

There are a few times you may want to act. If part of the refund was yours but was used to pay your spouse's debt, you may be able to file Form 8379, Injured Spouse Allocation, to claim your share. And if you simply disagree, you can write or call the IRS using the contact details on your notice — bring proof like cancelled checks or an amended return.

Notices like this can be confusing, and it's easy to lose track of what the IRS does with your money. Solace can keep an eye on your IRS account so you always know where things stand.