Understanding your CP242 notice

What this notice is about

We levied your state tax refund for unpaid taxes. You have the right to a Collection Due Process hearing.

What you need to do

• Read your notice carefully ― it explains our actions.
• Pay what you owe.
• Request a payment plan if you can't pay the full amount you owe.

You may want to

• Visit our payments page for more information about:
  • Payment plans
  • Offers in compromise
  • Temporary collection delays
• Send us a completed Form 2848, Power of Attorney and Declaration of Representative, to allow someone (such as an accountant) to contact us on your behalf.

Frequently asked questions

What should I do if I disagree with the notice?

Request a collection due process hearing on Form 12153, Request for a Collection Due Process or Equivalent Hearing PDF, by the due date on your notice.

Why should I request a Collection Due Process hearing?

You can appeal the levy and other disagreements you have about your tax liability at a collection due process hearing.

What happens if I can't pay what I owe immediately?

You can request a payment plan online or using Form 9465, Installment Agreement Request if you can't pay the full amount you owe immediately. Call us at the toll-free number on the top right corner of your notice to talk about payment options or Payment plans, installment agreements.

You may also be subject to the Fixing America's Surface Transportation (FAST) Act legislation, which generally prohibits the State Department from issuing or renewing a passport to a taxpayer with seriously delinquent tax debt. Additional information on passport certification is available at IRS.gov/passports.