The CP42 means your federal tax refund was reduced because you owe a past-due obligation to another government agency. This is different from the CP49, which applies refunds to IRS debts. The CP42 involves debts owed to other entities that participate in the Treasury Offset Program.
Common Debts That Trigger CP42
Past-due child support is the most common. State tax debts are second. Federal student loans in default, unemployment compensation debts owed to a state, and other federal agency debts (SBA loans, VA overpayments) can also trigger the offset.
The Bureau of the Fiscal Service (BFS) manages the Treasury Offset Program. When you're owed a federal refund and a participating agency has reported a past-due debt, BFS intercepts the refund and sends it to the creditor agency.
What You Can Do
If you believe the underlying debt is incorrect, contact the agency that claimed the offset. The IRS can't reverse an offset made through the Treasury Offset Program — only the claiming agency can release the funds. The CP42 identifies which agency received your refund and provides their contact information.
If you filed a joint return and the debt belongs to your spouse (not you), file Form 8379 (Injured Spouse Allocation) to recover your portion of the joint refund.
Pre-Offset Notice
BFS is required to send you a notice before offsetting your refund for non-tax debts. If you didn't receive advance notice, contact BFS at 1-800-304-3107. The advance notice should have given you the opportunity to dispute the debt before the offset occurred.
If your refund was offset for a debt you've already paid or don't owe, call us at (813) 229-7100.