CP75 Notice
The CP75 is an IRS audit notice requesting documentation to verify credits you claimed on your tax return, most commonly the Earned Income Tax Credit (EITC). You must respond with supporting documents to receive the credit.
Why Did You Receive This Notice?
You received a CP75 because the IRS selected your return for examination of one or more credits you claimed, most often the Earned Income Tax Credit. The IRS is requesting documentation to verify that you meet the eligibility requirements for the credit before processing your refund.
What Does this Mean for You?
The CP75 means your refund is on hold while the IRS reviews your eligibility for the claimed credits. You must provide the documentation listed in the notice to substantiate your claim. This is a correspondence audit, you do not need to appear in person, but you must respond by the deadline with the required documents.
What Happens If You Ignore It?
Your Options
- Respond with the requested documentation: Provide proof of qualifying children, residency, income, and any other items the notice requests.
- Respond explaining why you do not have certain documents: If you cannot provide specific documentation, explain in writing and provide alternatives.
- Work with a tax professional: EITC audits have specific documentation requirements, a professional can help you respond effectively.
- If you were not eligible: Withdraw the credit claim by responding and agreeing to the changes.
Step-By-Step: What To Do Next
- Read the CP75 carefully and create a list of every document the IRS is requesting.
- Gather birth certificates, school records, medical records, lease agreements, utility bills, or other documents proving a qualifying child lived with you.
- Organize your documents clearly and include a cover letter explaining each item.
- Send everything by certified mail to the address on the notice before the deadline.
- Keep copies of everything you send.
Can You Handle this Yourself?
Responding to a CP75 on your own is possible if your situation is straightforward. The key is gathering the right documents, the IRS looks for proof of the child's relationship to you, proof they lived with you for more than half the year, and proof of your income.
Expert Insight From Rockwater Tax
EITC audits are one of the areas where we see taxpayers lose credits they legitimately earned, simply because they did not know what documents to submit or submitted them incorrectly. At Rockwater Tax, we have helped many clients win CP75 audits by presenting documentation in the way the IRS expects to see it. The IRS has very specific evidentiary standards for these audits. A well-organized, complete response dramatically increases your chances of the credit being allowed.
Need a hand?
FAQ
Q: Does a CP75 mean I am being audited?
A: Yes, it is a correspondence audit focused on the credits you claimed. You do not need to appear in person, but you must respond with documentation.
Q: How long do I have to respond to a CP75?
A: The notice will specify a deadline, typically 30 days from the date of the letter.
Q: What documents does the IRS typically request?
A: Birth certificates, school records, medical records, lease agreements, utility bills, and income records are commonly requested.
Q: What if the child is mine but I do not have documents?
A: Gather as much alternative documentation as possible, doctors, schools, daycares, and other institutions can often provide letters or records. Contact a tax professional for help.
