Question about a cp 242 notice i got in the mail today?

Question

I received a CP 242 notice in the mail today, stating the IRS levied my state refund to pay my IRS tax debt. I don't think I owed anything because I received a refund from my federal tax return this year. How do I get to the bottom of this?

Answer 1

CP 242 – Notice of Levy upon Your State Tax Refund

CP 242 notifies you that the IRS levied your state tax refund to pay your unpaid federal tax. This notice and referenced publications explain how to request an appeal if you do not agree. You need to file a Form 12153, Request for A Collection Due Process Hearing and send it to the address shown on your levy notice within 30 days from the date of the letter in order to appeal the action with the Office of Appeals.

Use the search box at the www.irs.gov website for Form 12153 (3-2011) PDF

Request for a Collection Due Process or Equivalent Hearing



http://www.irs.gov/pub/irs-pdf/f12153.pdf



You can find a section explaining the deadline for requesting a Collection Due Process hearing in this form's instructions. If you've missed the deadline for requesting a CDP hearing, you must check line 6 (Equivalent Hearing) to request an equivalent hearing.



Line 9 Signature

I understand the CDP hearing and any subsequent judicial review will suspend the statutory period of limitations for collection action. I also understand my representative or I must sign and date this request before the IRS Office of Appeals can accept it. If you are signing as an officer of a company add your title (president, secretary, etc.) behind your signature.



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Where Can You Get Help?

You can call the telephone number on the lien or levy notice with your questions about requesting a hearing. The contact person listed on the notice or other representative can access your tax information and answer your questions.



You can get copies of tax forms, schedules, instructions, publications, and notices at www.irs.gov, at your local IRS office, or by calling toll-free 1-800-TAX-FORM (829-3676).

Hope that you find the above enclosed information useful.

Answer 2

You need to call the IRS and ask them why they would levy your state return but give you a refund from your federal return, because it may have been a mistake. If the IRS stands by their decision, you should appeal the action. You would need to file a Form 12153 and send it to the IRS. From there you will receive exact instructions on how to proceed. It is very important you follow these instructions precisely. Any mistake can cost you your appeal.

Answer 3

there is a phone number on the form which you can call to ask the reason