Educational notice: This page explains, in general terms, what an IRS CP24 notice is and why someone might receive it. It is not tax or legal advice and is not affiliated with or endorsed by the IRS.

CP24 notice explained (What it means when the IRS says your refund was changed because you owe something else)

CP24 notice explained: A CP24 notice generally means the IRS says your refund (or overpayment) was reduced or applied because you owed another tax debt. In plain English: “You had money coming back, but we used all or part of it to pay something else you owe.”

This page breaks down what CP24 usually means, what to check on the notice, how it’s different from CP12 and CP16, what happens if you ignore it, and how CP24 connects to the balance-due letter path. Everything here is educational and general.

What Is a CP24 Notice (Plain English)?

CP24 is commonly a notice about a refund adjustment. It usually shows up when the IRS says: you were owed a refund (or had an overpayment), but the IRS used that money to cover another outstanding tax debt.

The notice typically explains:

  • What refund/overpayment the IRS expected
  • What they changed (reduced, applied, or offset)
  • Where the money was applied (another tax period or balance)
  • Whether anything is still due or whether your account is now settled

Takeaway: CP24 is usually a “refund got used elsewhere” notice.

Common Reasons People Get a CP24 Notice

The IRS can apply (offset) money that would have been refunded if you owe another federal tax debt. CP24 is often how the IRS tells you about that action.

Common general triggers include:

  • Prior-year balance due you didn’t realize was still open
  • Penalties/interest that increased a prior-year balance
  • A payment plan default or partial payments that left a remainder
  • IRS corrections that changed the amounts and created an overpayment that got applied

Sometimes people call this “my refund disappeared.” In many cases, the IRS is saying it didn’t disappear—it was applied to another liability.

Takeaway: CP24 often shows up when an old tax debt meets a new refund.

CP24 vs CP12 vs CP16 (These Get Confused a Lot)

CP24 is easy to confuse with other “refund-related” notices. Here’s a simple way to separate them:

  • CP12 is commonly: “We corrected something on your return, and your refund/amount due changed.”
  • CP16 is commonly: “You had an overpayment and we applied it to another tax debt.”
  • CP24 is commonly: “Your refund/overpayment was reduced or applied because you owe something else.”

The “feel” of CP24 is: you expected a refund, but the IRS is telling you why it was reduced or redirected.

Takeaway: CP12 is often “we changed your return,” while CP16/CP24 are more about “where the money went.”

What to Check on a CP24 Notice

The fastest way to understand CP24 is to locate the “before” and “after” numbers and the “applied to” section. Check for:

  • Tax year the refund/overpayment relates to
  • Original refund amount (what you expected)
  • Offset/applied amount (what was used to pay another debt)
  • Where it was applied (which year/period)
  • Net result: do you still get a refund, or is it zeroed out?

If you’re ever unsure what type of letter you’re reading, start here: What does this IRS letter mean?

Takeaway: CP24 is all about the offset details—numbers, periods, and where the money was applied.

Does CP24 Mean You’re Being Audited?

Usually no. CP24 is typically an account notice about a refund/overpayment being applied elsewhere. It’s not a traditional audit letter.

Here’s the plain-English explanation: Does an IRS letter mean an audit?

Takeaway: CP24 is usually account processing, not an audit.

What Happens If You Ignore a CP24 Notice?

If CP24 is purely informational and your accounts now match what the IRS says, you may not need to do anything. But if CP24 reveals that you still have an unpaid balance (or you disagree with the offset), ignoring it can keep the issue alive and potentially lead to more letters.

This covers the “ignore it” risk: What happens if you ignore an IRS letter?

If there is still a balance due, you may see the common chain: CP501, CP503, and CP504. For the full overview, see: IRS balance due letters explained.

Takeaway: If there’s still a balance after CP24, you don’t want to ignore it.

How CP24 Connects to Collections (Levies, Liens, and the Big Fear Questions)

CP24 itself is not a levy and not a lien. It’s typically a notice about applying a refund/overpayment. But if a balance remains and goes unpaid long enough, collections concepts can become relevant later.

Start here: What is an IRS levy? and What is an IRS lien?.

If your stress is about specific assets, these pages break it down in simple terms:

Takeaway: CP24 is usually a “refund applied” notice, not a “we’re taking your stuff” notice.

Real-World Example (How CP24 Usually Shows Up)

Example: You expect a $1,200 refund. Instead, you get a CP24 notice saying the IRS applied $1,200 to a prior-year balance. Your refund becomes $0, but your prior-year debt is reduced or paid off.

The practical move is to confirm the “applied to” year and whether that old balance is now truly gone (or whether penalties/interest still leave a remainder).

Takeaway: CP24 often answers the question: “Where did my refund go?”

Helpful Related Pages

Frequently Asked Questions

What is a CP24 notice from the IRS?

A CP24 notice generally means the IRS reduced or applied your refund/overpayment because you owed another federal tax debt.

Does CP24 mean my refund was taken?

“Taken” is how it feels, but CP24 usually means the IRS applied your refund to another tax balance. The notice should tell you where it was applied and how much.

Is CP24 an audit notice?

Usually no. CP24 is typically an account notice about a refund being applied elsewhere. See: Does an IRS letter mean an audit?

What should I do first when I get a CP24?

First, confirm the tax year, the amount applied, and the “applied to” period. Then verify whether you still have any balance due afterwards. If you’re unsure what the letter is saying, start here: What does this IRS letter mean?

Could CP24 lead to levy or lien action?

CP24 itself is not a levy or lien. But if there is still an unpaid balance and it remains unresolved over time, stronger collection steps can become relevant. Learn the basics here: What is an IRS levy? and What is an IRS lien?.

This page is for general educational purposes only and does not provide tax or legal advice. WhatThisIRSLetterMeans.com is not affiliated with the IRS or any government agency.