IRS notice CP75
CP75 notice: the IRS is auditing your Earned Income Credit
A CP75 means the IRS is auditing your return and needs documents to verify the Earned Income Credit you claimed. Until the audit is finished, it is holding the EIC, Additional Child Tax Credit or Recovery Rebate Credit part of your refund, and possibly any Premium Tax Credit part.
What to send
Read the notice and the enclosed forms. There is a separate form for each item being audited, explaining what documentation the IRS needs to see. Send copies, not originals, of the documents it asks for, and fill in the Response form to show which items each document supports.
Send everything at the same time, and make sure it is legible; the IRS says this avoids confusion and delays. It is worth checking the EIC rules before you send anything: a qualifying child has to meet the relationship, age, residency and joint return tests, and there are separate rules for claiming the credit without a qualifying child.
How to send it
- Upload it with the Campus Correspondence Exam Document Upload Tool, which the IRS describes as quick and secure.
- Fax the form and documents to the number in the notice.
- Mail them, with the notice stub from the end of the notice, to the address at the top of the notice.
If you cannot provide the documents
The IRS will disallow the audited items and send you an examination report showing the proposed changes to your return. If you did not file a return claiming these credits, and someone else may be using your name and Social Security number, call the number on the notice.
Keep filing. The IRS says you should continue to file every required return on time while the audit is open, to avoid more penalties and interest.
Want a second pair of eyes on it?
USTAXX can check the notice against the return it refers to. Where the answer is a return — an amended return, a missing year, a corrected form — we prepare it, and you sign and send your own reply. We are an IRS Authorized e-file provider and work with clients remotely through a secure portal, by phone or video, and in person at our office in Naperville, IL.
Questions people ask
Why was my return selected for a CP75 audit?
The IRS selects returns by random sampling, computerized screening and comparison with information such as Forms W-2 and 1099. It says being selected does not suggest you made an error or were dishonest.
Can I claim the EIC for my fiancé’s child?
No. The IRS says you must be married to the child’s parent during the tax year in question to claim the credit for that child.
What happens to the refund being held?
It stays held until the audit is finished. If you cannot document the credits, the IRS disallows them and sends an examination report with the proposed changes.
Where these rules come from
- IRS: Understanding your CP75 notice
- IRS: Publication 596, Earned Income Credit
- IRS: Publication 3498-A, The Examination Process
General information, current when written, not advice about your situation. Fees and forms change; the official pages above are the authority.