According to the IRS, nearly half of all audits focus on taxpayers claiming the earned income tax credit (EITC), one of the most common refundable credits. If you have received an IRS CP75 notice, it means the IRS is taking a closer look at your return before releasing your refund. This notice is part of a correspondence audit that happens by mail, and it temporarily puts your refund on hold until you provide the correct information.

The CP75 notice specifically relates to refundable credits such as the earned income tax credit, additional child tax credit, and recovery rebate credit. The IRS uses automated systems and third-party data to match what you reported on your tax return with other records. If something doesn’t match or you were randomly selected, the IRS sends a notice to verify eligibility before approving your refund claim.

Getting this letter can feel stressful, but it does not necessarily mean you made a mistake or committed fraud. This guide will explain what the IRS notice means, why you may have received it, and how to respond quickly and accurately. Following the steps, you can protect your tax refund, provide the requested documentation, and avoid unnecessary delays.

What Is an IRS CP75 Notice?

An IRS CP75 notice is an official letter from the Internal Revenue Service informing you that your tax return is under review for certain credits. It is not a field audit. Instead, it is a correspondence examination that takes place entirely by mail. The purpose of the notice is to verify that you qualify for the credits you claimed before the IRS releases the refundable portion of your tax refund.

This type of notice, CP75, usually affects taxpayers who claimed one or more refundable tax credits. Because these credits can result in a larger refund, the IRS performs extra checks to ensure they are claimed correctly. Receiving this notice does not automatically mean you made an error, but it does mean the IRS needs documentation before approving your refund claim.

Tax Credits Affected

Several major credits may be under review when you receive this letter:

• Earned Income Credit (EIC): One of the most commonly audited benefits, this credit is meant to support working individuals with low to moderate income.
  
  
• Additional Child Tax Credit: A refundable portion of the child tax credit can boost your refund even if you owe little or no tax.
  
  
• Dependent Care Tax Credit: This helps cover expenses paid for childcare or dependent care so you can work or look for work.
  
  
• Premium Tax Credit: This is available to qualifying taxpayers who purchased health insurance through the Marketplace.

The IRS may also check eligibility for certain credits based on your filing status, income, and household composition.

Why Did You Receive This Notice?

The IRS issues a CP75 notice to confirm that you meet the rules for the credits claimed on your tax return. This is often part of its automated compliance program, which reviews returns using computer screening and data matching. Sometimes, your return may be chosen randomly as part of the agency’s audit process.

Common IRS Requests

The notice will include a list of requested documentation to prove eligibility. Examples include:

• School records showing your child lived with you for more than half of the year
  
  
• Birth certificates or adoption papers proving relationship to a qualifying child
  
  
• Divorce decree or custody agreement establishing who can claim the child
  
  
• Medical records or insurance statements with your address
  
  
• Bank statements or proof of household expenses to confirm residency
  
  
• Employer forms, such as W-2s and 1099s, used to verify income

The IRS uses automated systems and information from employers, financial institutions, and government agencies to compare what you reported with third-party data. If something doesn’t match or appears incomplete, the agency may request the same documents you submitted to ensure consistency.

Responding with the correct paperwork by the deadline is critical. Missing or partial responses can delay your refund or cause the IRS to disallow the credits.

Consequences of Ignoring the IRS CP75 Notice

Failing to respond to your IRS CP75 notice can have serious financial consequences. The IRS uses the notice date to calculate your response window, typically 30 days. If you do not provide the requested documentation by the due date, the agency will move forward with its determination using only the information it has on file.

Immediate Consequences

• Credit disallowance: The IRS disallows your earned income credit, additional child tax credit, or other claimed credits.
  
  
• Reduced refund: Your tax refund will be delayed or significantly smaller than expected.
  
  
• Tax owed: If your credits are removed, you may have a tax liability instead of a refund, leading to a bill from the IRS.

Long-Term Financial Impact

• Future tax years: Ignoring the notice can restrict claiming credits for two to ten years.
  
  
• Additional penalties: Penalties and interest will continue to build on any unpaid amount until it is resolved.
  
  
• Collection actions: The IRS may collect unpaid taxes by wage garnishment, bank levies, or filing a lien against your property.

Comparison Table: Respond vs. Ignore

Action

Immediate Impact

Future Impact

Respond promptly

Refund released faster, credits verified

Avoid penalties and remain eligible for future credits

Ignore the notice

Credits removed, tax owed, refund denied

Risk of EITC bans, collection actions, and growing interest

How to Respond to the IRS CP75 Notice

Responding to your IRS CP75 notice correctly and on time is the best way to protect your tax refund. The IRS provides a straightforward process for proving eligibility and resolving the review. Follow these three steps carefully and keep copies of all paperwork you send.

Step 1: Review and Gather Required Documentation

Start by reading the notice carefully and checking the list of required documentation included with Form 886-H-EIC. Gather proof for each credit you claimed:

• Household expenses: Rent or utility bills that show your name and address can be used to prove residency.
  
  
• School records: Enrollment documents can demonstrate that your child lived with you for more than half of the tax year.
  
  
• Medical records: Insurance statements or doctor visit summaries that list your address can help confirm residency.
  
  
• Adoption papers or birth certificates: These documents establish the legal relationship to the child.
  
  
• Bank statements: Statements that show income deposits can verify your reported earnings.

Having the proper supporting documents upfront prevents delays.

Step 2: Complete the Response Form

Fill out the response form included in your notice. Be sure to reference which documents support each credit and double-check that your information is accurate. The IRS expects a completed response form with every submission. This is your opportunity to prove filing status and confirm that the same documents match what you reported on your return.

Step 3: Submit Your Documents

You have three ways to submit documents to the IRS:

Submission Method

Speed

Best For

Digital Upload

Fastest

Taxpayers with an online account who want immediate confirmation

Fax Submission

Quick

Those using an online fax service or office fax for secure transmission

Mail

Slowest

Taxpayers who prefer a paper trail (send copies, not originals)

Whichever method you choose, keep copies of your supporting documents and send them before the due date. This ensures the IRS has time to review them and prevents additional delays.

Relief and Resolution Options

If the IRS determines that you owe additional tax after reviewing your IRS CP75 notice, you still have several ways to resolve the balance. Taking action quickly can limit interest and additional penalties.

Payment Plans

The IRS offers payment plans that allow you to spread your tax liability over time:

• Short-Term Payment Plan: This plan is available if you can pay the full tax owed within 180 days. No setup fee applies.
  
  
• Long-Term Payment Plan: This plan is ideal if your balance is under $50,000. Monthly payments are made over several years, and setup fees may be waived for low-income taxpayers.

[Installment Agreement Guide]

Offer in Compromise

If paying in full would create a financial hardship, you can apply for an Offer in Compromise to settle for less than the full amount owed. The IRS will review your income, expenses claimed, and ability to pay before deciding.

Penalty Relief

You may qualify for first-time penalty abatement or relief for reasonable cause if you have a good compliance history. The IRS reviews additional documentation and circumstances that prevented timely filing or payment. After reviewing your case, the IRS will send an audit report or proposed changes explaining the results and next steps. Respond promptly if you disagree with their findings.

Professional Help and Resources

Responding to an IRS CP75 notice often requires official records such as account transcripts, wage and income statements, or non-filing letters. Instead of spending hours navigating IRS systems, you can use our IRS Transcript Retrieval Services to get the exact documents the IRS is reviewing.

Get Your IRS Records Quickly

Our team securely requests your transcripts through IRS-authorized systems, packages them with plain-English explanations, and delivers them within days. You will know precisely what the IRS sees before you submit your supporting documents. We offer:

• IRS Account & Wage Transcripts: These transcripts verify the income reported by employers and financial institutions.
  
  
• IRS Non-Filing Letters: These letters prove that you were not required to file a tax return.
  
  
• AGI & ITIN Verification: This confirms your prior-year AGI or ITIN status to ensure filing accuracy.

Professional Tax Help

Working with a tax professional can ensure your response form is complete and accurate for complex cases. Low-income taxpayer clinics can offer free or low-cost representation. If you meet income guidelines, call the toll-free number in your notice for further details about deadlines or extensions.

Frequently Asked Questions (FAQs)

How does the IRS CP75 audit affect my earned income tax credit?

Receiving an audit notice means the IRS verifies that you meet all requirements for this tax credit before releasing your refund. You must provide necessary documentation, such as school records or income statements. Your rebate is released once the IRS reviews your examination report and confirms eligibility. If you do not respond, the credit may be disallowed.

Can I still claim the earned income credit on future returns?

Yes, you can continue claiming the credit on future returns as long as you remain eligible. However, if the IRS disallows your credit for the current year, it may impose restrictions on claiming it for future years. To avoid this, effectively respond to the current IRS inquiries with all the requested information before the deadline.

What if I have business expenses or childcare costs under review?

The IRS may ask for receipts or proof of payment if your return includes business expenses or dependent care costs. These are part of the reviewed tax matters to confirm that your claimed deductions and credits are valid. Send copies of all records and keep them organized if further review is required.

Do I need to fill out a specific IRS form for my response?

Yes, your CP75 packet includes a response sheet or IRS form that must be completed. Use this form to indicate which supporting documents you are sending. The IRS uses it to match your records with their files. A clear, complete response helps you effectively respond and avoid delays in closing the audit.

Who can I contact if I need help with this audit notice?

You can seek assistance from a tax professional, a Low Income Taxpayer Clinic, or call the number on your notice. They can help clarify requested information and explain your rights. If you disagree with the results, you can request further review or appeal the IRS decision after you receive the examination report.

Your response to the IRS CP75 notice is time-sensitive. The sooner you submit the required documentation, the faster the IRS can release your refund and close your audit case. If you need transcripts, AGI verification, or help preparing your response packet, we can retrieve your records securely and explain precisely what the IRS sees. Our team makes it easier to respond and effectively avoid additional penalties or delays.

Don’t wait until the due date passes. Protect your refund, verify your eligibility, and quickly resolve any outstanding tax matters.

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