IRS NOTICE REFERENCE
Understanding your CP242 notice
We garnished your state tax refund to pay your federal taxes. You have the right to a Collection Due Process (CDP) hearing if you disagree with this decision.
General information only. Not legal or tax advice.
Notice details
- Notice code
- CP242
- Category
- Appeals and collection due process
- Severity tier
- Tier 4 — Escalation warranted. The notice involves collection enforcement, appeals rights, or significant penalty exposure.
- Governing law
- §6330; §6331 (Internal Revenue Code sections)
- Statutory response window
- 30-day window — always confirm the exact deadline against the date printed on your notice.
- Escalation flag
- This notice carries a forfeitable right, a hard statutory deadline, or criminal-preparer risk. It is flagged for escalation in the TaxRiskOS workflow.
- Source
- IRS.gov — Understanding Your IRS Notice
What this notice is
We garnished your state tax refund to pay your federal taxes. You have the right to a Collection Due Process (CDP) hearing if you disagree with this decision.
Source: IRS.gov. Reproduced for reference. General information — not legal or tax advice.
What the IRS says to do
Pay what you owe. If you can’t pay the full amount, visit our payments page for more information about payment plans , offer in compromise and temporary collection delays . Call us if you’ve already paid in full or think a payment you submitted is missing. If we notified you that collection activity has been suspended because you have a financial hardship, you don’t have to do anything. If you still need help, you can call us at the phone number shown on your notice.
This is the IRS’s own guidance reproduced from the IRS notice page. It describes the IRS’s process — it is not legal or tax advice from TaxRiskOS.
Governing IRS procedure (Internal Revenue Manual)
The IRS’s own internal procedures for handling this notice type are documented in the Internal Revenue Manual:
- IRM 5.1.9 — 5.1.9 Collection Appeal Rights
- IRM 5.19.8 — 5.19.8 Collection Appeal Rights
- IRM 5.12.6 — 5.12.6 Appeals Processes Involving Liens
Reference to published IRS procedure. General information — not legal or tax advice.
Official IRS reference
Read the official notice page on IRS.gov: https://www.irs.gov/individuals/understanding-your-cp242-notice
Related tools
TaxRiskOS is workflow software for practitioners — it captures the notice, computes the deadline, surfaces the escalation tier, and builds a document checklist. It documents process; it does not give advice or draft responses.
Check this notice’s deadline (free tool)