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Posted by Pat Raskob

A Summary of EITC Letters & Notices

A Summary of EITC Letters & Notices

This article will examine the Earned Income Tax Credit (EITC) letters and other notices a worker could receive from the IRS and why such notices are sent.

The EITC is a refundable tax credit eligible workers receive just as a reminder. Every year, millions of qualified workers receive an income tax credit. The average refund amounts to about $2,500.


Notification Form 797

Typically, employees are required to send employees who qualify for the refund a notice that informs them of their eligibility. In many states, they get the notice as Form 797. When workers receive Form 797, it proves that they can apply for and get refunds. Several factors determine eligibility, but whenever a worker is deemed qualified, employers send the notice to the worker and then submit that notification attached to the workers' Form W-2. It should be noted that not all states require sending this notification.

The IRS may send other letters or notices to eligible workers on the EITC. The letters could serve as warnings or reminders. These are the kinds of letters sent by the IRS.

  • IRS Notice CP09: An IRS CP09 notification indicates that due to dependent children, a person may benefit from a refund

After sending a notification of dependent children to the IRS, you are expected to start claiming the earned income tax credit. Sometimes, the prospective beneficiary may not claim the EITC in the returns due to omission or ignorance. If the IRS determines that you are eligible for the refund, you may receive the IRS Notice CP09. With that notification, you will receive the refund if you follow it up.

When you receive the IRS Notice CP09, you are often required to fill out the necessary forms and complete the spreadsheet sent to you. An address would be on the notification to send it after completion. The IRS would confirm then confirm it. Upon confirmation, your refund will be sent to you within eight weeks. 

Sometimes, you can receive an IRS Notice CP09 even though you're not eligible for the EITC. You are not required to take any action. If you do, you could be penalized.

  • IRS Notice CP27An IRS CP27 notification confirms eligibility for a refund even if the beneficiary doesn't have children who qualify 

You can receive IRS notifications CP27 when the IRS determines that you may be eligible for the EITC even though you may not have eligible children. To be sure, the IRS sends the notification to get information that would help them further determine your eligibility. If you believe you qualify, fill out the worksheet forwarded with the message to the address on the notification. It is left for the IRS to confirm your eligibility, upon which a refund will be sent to you within eight weeks.

  • IRS Notice CP74 IRS CP74 notification confirms the recertification of the beneficiary

If a person has problems with the previous year's income credit due to specific issues and doesn't get the EITC, the recertification may be requested from the IRS. 

Once recertified, the IRS would send a notification IRS Notice CP 74. With that notification, you are informed of your eligibility for the EITC. It also means you no longer have to file Form 8862 anymore. The IRS Notice CP74 implies that work is ongoing and that the refund is under processing.

Filing taxes can be quite a tasking duty. If you don't hire a professional to handle all the documentation, these are some letters and notices that you may have to get familiar with if you're eligible for the Earned Income Tax Credit.



Pat Raskob
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