A summary of EITC letters and notices

The Earned Income Credit (EITC) is a federal tax refund for workers and families who meet specific eligibility requirements. Employers must provide EITC employees with information when providing W-2, 1099, or comparable forms for a fiscal year.

In 2019, 25 million eligible workers and families received about $ 61 billion in EITC, according to the IRS. The EITC, also known as the income tax credit, is a refundable tax credit with an average of $ 2,504.

EITC Letters and Communications

There are several letters and warnings from the EITC that a taxpayer can receive: Internal Revenue Notification CP74, Internal Revenue Notification CP27, and Internal Revenue Notification CP09. This article will describe each of them and why you might receive each of the letters or communications from the EITC.

• IRS CP74 Notice: Global Income Credit (EIC) Certificate

The IRS CP74 notification will be sent to inform you that you have been recertified for the income tax credit received.

Type of notification: exchange of information or account

The IRS CP74 notification will be sent to inform you that you have been recertified for the income tax credit received.

Why did you receive IRS warning CP74:

• Your accumulated income credit (CPN) was refused a year earlier.
• Ask for the certification certificate for the EIC.
• The IRS submits CP74 to inform you that you have been recertified at the EIC and that you are not required to file Form 8862, Information to claim certain credits in the event of future cancellation. This notification also indicates that the refund is being processed.
• IRS CP27 Notice - Important Income Credit Information

The IRS CP27 notice will be sent to inform you that even if you do not have qualified children, you may still be eligible for the income tax credit.

Type of notice: accuracy of the return

The most common areas with tax issues: IRS refunds and account issues

Why did you receive IRS warning CP27:

• You filed a tax return with the IRS.
• Based on income, the IRS has determined that it is possible to benefit from the Income Tax Credit (EITC).
• The IRS sent CP27 to decide whether you are eligible for the EITC. Complete the worksheet attached to the advertisement to determine if you qualify. If qualified, send the completed and signed sheet to the IRS. If the IRS accepts, you will receive a refund within 6-8 weeks.

Options to respond to the CP27 IRS warning:

• Complete, sign, and date the spreadsheet and send it to the IRS at the address indicated in the letter.
• Do not send spreadsheets if you are not qualified or do not wish to receive credit.

Notification IR09 CP09 - Taxpayers can benefit from an income credit

An IRS CP09 notice will be sent to inform you that you can benefit from an income tax credit due to dependent children, which may result in a refund.

Type of notice: accuracy of the return

The most common areas with tax issues: IRS refunds and account issues

Why you received a notification from the IRS CP09:

• You sent an original declaration to the IRS listing the dependent children, but you did not claim the income tax credit (EITC).
• The IRS has determined that you may be eligible for the EITC and will receive a credit repayment.
• The IRS has sent CP09 to inform you that you can qualify for the credit and request that you complete and return the eligibility worksheet in the EITC Annex if you determine that you are eligible for the CIS. If the IRS confirms your eligibility for the EITC, a refund will be sent within six to eight weeks. If you determine that you are not eligible for credit, no further action is required.

Options to respond to warning IR09 CP09:

• Complete, sign, and date the spreadsheet and return to the IRS at the address indicated on the letter.
• Do not send spreadsheets if you are not qualified or if you do not wish to receive credit.