By situation
When the IRS reviews or denies the earned income credit
Returns with the credit are reviewed more often than others, mostly by letter. Answering on time with the right documents usually settles it.
Do you qualify for the earned income credit?
Federal EITC, tax year 2025
You qualify: $4,328
| Earned income above zero | met |
| Income below $50,434 | met |
| Investment income $11,950 or less | met |
| Valid SSNs for work | met |
A qualifying child must also pass the relationship, age, residency and joint return tests. Not filing as married filing separately, unless separated.
When the IRS questions an earned income credit, it usually freezes the part of the refund linked to the credit and sends a letter asking for documents, often to show that a child lived with you more than half the year, that the child is related to you, or that self-employment income was earned. You answer by the date on the letter, with copies of school, medical, lease or business records. If the credit is denied or reduced for a reason other than a math or clerical error, you must attach Form 8862 to the first later return on which you claim it again. If the IRS finds the claim was due to reckless or intentional disregard of the rules, you cannot claim the credit for the next two years; if it finds fraud, for ten years. Several state credits fall with the federal one. You can ask the Taxpayer Advocate Service for help when a delay causes hardship.
IRS and state rules read by Radif Partners · Editorial policy · Method and sources
Common letters
| Letter or notice | What it means |
|---|---|
| Letter 4800C or a request for documents | The IRS needs proof before allowing the credit; part of the refund is held |
| CP09 | You may qualify for the credit you did not claim; a worksheet is enclosed |
| CP27 | You may qualify for the credit without a qualifying child |
| CP75 | Your credit is under audit and the related part of the refund is held |
| CP79 or CP79A | A past denial: you must file Form 8862, and a ban may apply |
Claiming again after a denial
Form 8862, Information to Claim Certain Credits After Disallowance, explains what changed: a child who now meets the residency test, a correct Social Security number, income that is now documented. Without it, the IRS denies the credit on the new return automatically. Form 8862 is also used for the child tax credit and the American opportunity credit after a denial.
The bans
A ban is decided by the IRS, not automatic after any denial. It applies when the claim showed reckless or intentional disregard of the rules (two years) or fraud (ten years), and covers every year in the period, with no Form 8862 possible until it ends. An honest mistake, such as misunderstanding the residency test, leads to repaying the credit, with interest, but not to a ban.
Getting help
The Taxpayer Advocate Service, an independent office within the IRS, helps when a refund is held for a long time and causes hardship, or when the normal process does not work; its help is free. Low Income Taxpayer Clinics represent taxpayers in disputes with the IRS for free or a small fee. Answer every letter by the date it gives: if you do not, the credit is denied and the IRS sends a bill for any part already paid.