CP92 Notice
The CP92 is an IRS notice informing you that the IRS has levied your state income tax refund and applied it to your unpaid federal tax balance. The notice also informs you of your right to request a Collection Due Process Hearing
Why Did You Receive This Notice?
You received a CP92 because you had an outstanding federal tax debt and the IRS, through the Federal Payment Levy Program (FPLP) or Treasury Offset Program (TOP), intercepted your state income tax refund before it was issued to you. The levied amount has been applied toward your federal tax balance.
What Does this Mean for You?
The CP92 means the IRS has already taken your state refund and applied it to your federal tax debt. The notice shows the amount taken and the tax period to which it was applied. If your federal balance exceeds the amount taken, you still owe the remainder.
What Happens If You Ignore It?
Your Options
- Review the notice: Confirm the amount taken and the remaining balance on your federal tax account.
- Pay or arrange the remaining balance: If a balance still exists after the offset, set up a payment plan or pay in full to stop further collection.
- Dispute if incorrect: If you believe the offset was applied in error — for example, to the wrong tax period or taxpayer — contact the IRS and request a correction.
Step-By-Step: What To Do Next
Step 1: Read the CP92 and note the amount levied and the tax year it was applied to.
Step 2: Log into your IRS Online Account to verify your current balance.
Step 3: If a remaining balance exists, set up a payment plan or pay it in full.
Step 4: If you believe the levy was applied incorrectly, call the IRS with your documentation.
Step 5: Monitor future state refunds — if you still have a federal balance, future state refunds may also be levied.
Can You Handle this Yourself?
The CP92 typically requires reviewing your current balance and deciding on your next step. If you already knew about your federal debt, this is a notification that some of it was resolved. Check your remaining balance at irs.gov and set up a payment plan if needed.
Expert Insight From Rockwater Tax
At Rockwater Tax, we see CP92 notices as an opportunity to reassess the client's overall tax debt strategy. If the IRS has started levying state refunds, it signals that active collection is underway. We often recommend formalizing a payment arrangement at this point to prevent more disruptive enforcement — like wage garnishment or bank levies — from following.
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FAQ
Q: Can the IRS take my state tax refund?
A: Yes. Through the Treasury Offset Program, the IRS can intercept state income tax refunds and apply them to federal tax debts.
Q: Can I get the offset reversed?
A: Only if the offset was applied in error. If the federal debt is valid, the offset stands.
Q: Will my future state refunds also be taken?A: Yes, as long as a federal balance remains, future state refunds are subject to offset.
A: Yes. Through the Treasury Offset Program, the IRS can intercept state income tax refunds and apply them to federal tax debts.
Q: Can I get the offset reversed?
A: Only if the offset was applied in error. If the federal debt is valid, the offset stands.
Q: Will my future state refunds also be taken?
A: Yes, as long as a federal balance remains, future state refunds are subject to offset.
