IRS notice
IRS Notice CP75: What It Means and How to Respond
The IRS is auditing the Earned Income Credit on your return and holding the refundable-credit part of your refund until it finishes.
Reply by the date on the notice
Respond by the date printed on your CP75; the IRS page gives no fixed number of days, and missing the date means the audited credits are disallowed.
CP75 means the IRS is examining your return to verify the Earned Income Credit you claimed, and it is holding the EIC, Additional Child Tax Credit and Recovery Rebate Credit parts of your refund until the audit is done (and possibly a Premium Tax Credit portion). Send copies of the documents the notice lists, with its response form, by the date on the notice. If you send nothing, the IRS disallows the audited items and issues an examination report.
What this notice is telling you
- Your return is under examination, which is an audit, focused on the Earned Income Credit you claimed.
- The EIC, Additional Child Tax Credit and Recovery Rebate Credit parts of your refund are on hold until the audit ends; a Premium Tax Credit portion may be held too.
- The IRS says returns are picked through random sampling, computer screening and comparisons with Forms W-2 and 1099, and that selection doesn't suggest error or dishonesty.
- The notice and its enclosures list the exact documents the IRS wants to see.
- If you don't send documents, the credits are disallowed and you receive an examination report proposing the changes.
What to do
Read the enclosures as a checklist
The notice and the forms with it say which items are being examined and what documents verify each one. Work from that list, not from general advice.
Test each child against the qualifying child rules
For the EIC, a qualifying child must meet the relationship, age, residency and joint return tests. For residency, the child must have lived in the same home as you in the United States for more than half the tax year.
Gather documents that prove each test
Collect copies of records that show the relationship, the child's age and where the child lived during the year, plus anything else the notice asks for. Make them easy to read.
Fill in the response form
Complete the Response form that came with the notice, marking which items your documents support, and send everything together in one package.
Send it one of three ways
Upload through the IRS Correspondence Exam Document Upload Tool, fax to the number on the notice, or mail with the notice stub to the address at the top of the notice. Keep copies and proof of the date you sent it.
What a strong CP75 response looks like
An EIC audit turns on facts about your household, so the documents have to prove those facts for the specific tax year. Line them up against the four qualifying child tests the IRS applies.
| Test | What the IRS requires |
|---|---|
| Relationship | Your son, daughter, stepchild, adopted or foster child, sibling, half-sibling or stepsibling, or a descendant such as a grandchild, niece or nephew |
| Age | Under 19 at year-end and younger than you (or your spouse if filing jointly); or under 24 and a full-time student for at least five months; or any age if permanently and totally disabled |
| Residency | Lived in the same home as you in the United States for more than half the tax year |
| Joint return | The child did not file a joint return, except one filed only to claim a refund of withholding or estimated tax |
If you can't support the credit, or don't respond
If no documentation reaches the IRS, it disallows the audited items and sends an examination report showing the proposed changes to your return. The held portion of the refund is not released while the audit is open, so a missing response leaves those credits unsupported.
If you never filed the return the CP75 refers to and someone may be using your Social Security number, call the number on the notice and use the IRS identity theft resources.
Meanwhile, keep filing
The audit covers the year on the notice. Keep filing your other required returns on time; the IRS points out that late filing brings its own penalties and interest.
Want a CPA to deal with it?
Bring the notice to a free consultation, in person on James Island or by video. We read it with you, tell you what it means for your account and, if you want us to, take over the response once you sign Form 2848.
IRS & SCDOR letters — Find your notice number below, see what it means and which date matters, then let a licensed CPA deal with the IRS or SCDOR on your behalf.
Sources
By Haigler CPA Group. Updated . Notices are revised from time to time, so go by the wording and dates on your own notice. The information on this site is general in nature and is not tax, legal, or accounting advice for your situation. Tax law changes and the right answer depends on facts we would need to review with you. Please speak with a qualified professional before acting on anything you read here.
Questions about CP75
Which part of my refund is held under a CP75?
The IRS holds the Earned Income Credit, Additional Child Tax Credit and Recovery Rebate Credit parts of the refund until the audit is complete. If you claimed the Premium Tax Credit, it may hold that portion as well.
How do I send documents for a CP75?
You can upload them through the Correspondence Exam Document Upload Tool, fax them to the number on the notice, or mail them with the notice stub to the address at the top of the notice. Send everything at once with the completed Response form.
Why was my Earned Income Credit picked for review?
The IRS says returns are selected by methods including random sampling, computerized screening and comparisons with information returns such as Forms W-2 and 1099, and that selection doesn't suggest you made an error or were dishonest.
What if I claimed the EIC without a qualifying child?
Separate EIC eligibility rules apply to taxpayers without a qualifying child. The IRS points you to those rules, and your notice lists the documents it wants for the items being examined.
Other notices
- CP05: The IRS is reviewing your return before releasing your refundThe IRS needs more time to verify income, withholding, credits or business income on your return; if you filed it, no reply is needed.
- CP87A: Someone else claimed the same dependentAnother return claimed a dependent or qualifying child with the same SSN as one on your return; check the rules and amend only if needed.
- IRS notice lookupEvery IRS notice carries a code. Find yours below to see what it generally means, which date matters, and what to do before that date passes.
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