What Is a CP75 Notice?
A CP75 is a notice from the IRS informing you that your Earned Income Credit (EIC) claim on your federal tax return is being examined and your refund is being held pending the outcome of that examination. The IRS is not automatically denying your credit. It is not saying you did anything wrong. It is requesting specific documentation to verify that you meet the eligibility requirements before it releases the funds.
The notice arrives on IRS letterhead and will include your name, address, Social Security number, the tax year being examined, a specific list of documents the IRS is requesting, a deadline for providing those documents, and the IRS address where your response should be sent. Until you respond with documentation the IRS accepts as sufficient — or until the IRS completes its review — the portion of your refund attributable to the Earned Income Credit will not be released.
The CP75 is one of the most common audit-type notices issued to individual taxpayers because the Earned Income Credit is one of the most scrutinized line items on individual returns. The IRS examines a significant portion of EIC claims each year — not because every claimant is suspected of fraud, but because the credit's eligibility rules are complex and the error rate across all claims has historically been high.
Why Did You Receive a CP75?
The IRS's automated systems select EIC claims for examination based on specific factors that create uncertainty about eligibility. Your return was selected because one or more of those factors was present.
A qualifying child was also claimed on another return. This is the most common trigger. In situations involving divorce, separation, or multiple family members helping raise a child, the same child is sometimes claimed by more than one taxpayer in the same year. The IRS receives both returns, identifies the duplicate, and examines both to determine which taxpayer actually meets the qualifying child residency requirements.
The qualifying child is approaching the age limit. The EIC requires a qualifying child to be under age 19 (or under 24 if a full-time student). When a child on a claim is close to an age threshold, the IRS may examine the claim to verify the child's age and student status.
The claimed filing status raises questions. Head of household filing status combined with an EIC claim is examined more frequently than other combinations. The IRS wants to verify that the taxpayer actually maintained a home for the qualifying child and did not simply claim the status to maximize the credit.
Earned income amounts appear inconsistent. The EIC is calculated based on earned income — wages, salaries, self-employment income. If your earned income is unusually low or unusually high compared to prior years in a way that maximizes your EIC, the IRS may examine the claim. Self-employment income reported at levels that appear designed to optimize the credit is a particular focus.
The claim is for a child with an unusual relationship. The EIC qualifying child rules allow claims for grandchildren, nieces, nephews, siblings, and other relatives under specific conditions. Claims involving non-parent relatives are examined at higher rates than those involving biological or adoptive children.
It is your first EIC claim after years of not claiming it. A taxpayer who has filed for several years without claiming the EIC and then claims a large credit — perhaps because a qualifying child moved in — may be selected for examination to verify the new claim is legitimate.
What Is Physically on the CP75?
The CP75 will identify the specific aspect of your EIC claim that is under review. It will contain a detailed list of the documentation you are required to submit, which varies depending on the basis for the examination.
For qualifying child examinations, the IRS typically requests: the child's birth certificate or adoption papers establishing the relationship; school records for the tax year showing the child's name, address, and attendance; medical records showing the child's address; records from childcare providers showing the child's address; and lease agreements, utility bills, or other official records in both your name and the child's name showing you lived at the same address.
For income examinations, the IRS requests W-2s, 1099s, and in the case of self-employment, business records, bank statements, and Schedule C documentation.
For filing status examinations, the IRS may request documentation showing you maintained a household, paid household expenses, and that the qualifying child lived with you for more than half the year.
The notice will also specify the deadline for submitting documentation — typically 30 days from the notice date — and the specific IRS correspondence address where documents should be mailed. It is important to note that the address on the CP75 is a specific correspondence unit address, not the general IRS filing address. Documents sent to the wrong address may not be matched to your case.
What Qualifies Someone for the Earned Income Credit?
The EIC has four main eligibility components, and each can be the subject of a CP75 examination:
Earned income requirement. You must have earned income — wages, salaries, tips, or net self-employment income. Investment income, Social Security, pensions, and similar unearned income do not count. Your earned income must fall within the applicable limits for your filing status and number of qualifying children.
Adjusted gross income requirement. Your AGI must be below certain thresholds, which vary by filing status and number of qualifying children. For 2024, those thresholds range from approximately $18,591 for single filers with no children to $59,899 for married filing jointly with three or more children.
Qualifying child requirements. Each qualifying child must pass four tests simultaneously: the age test (under 19, or under 24 if a full-time student, or any age if permanently and totally disabled); the relationship test (child, stepchild, foster child, sibling, stepsibling, or a descendant of any of these); the residency test (lived with you in the U.S. for more than half the tax year); and the joint return test (the child cannot file a joint return with a spouse except in limited circumstances).
Filing status requirement. Your filing status must be something other than married filing separately.
The residency test is the most frequently examined component. The IRS wants physical evidence that the qualifying child actually lived in your home for more than 183 days of the tax year — not just that you are related to the child, and not just that you financially support the child.
What Happens If You Do Not Respond to CP75?
If you do not submit the requested documentation by the deadline, the IRS will disallow your Earned Income Credit claim entirely. Your refund will be recalculated without the EIC, and the IRS will either issue a reduced refund or, if the removal of the EIC results in a tax liability, issue a balance-due notice.
Additionally, if the IRS determines your EIC claim was made without a reasonable basis — meaning you claimed the credit without having a good-faith belief that you qualified — the consequences go beyond the current year:
Two-year ban. If the IRS determines the claim was made recklessly or with intentional disregard of the rules, you may be banned from claiming the EIC for two years following the disallowance.
Ten-year ban. If the IRS determines the claim was fraudulent, the ban extends to ten years.
These bans are not automatic — they require specific findings by the IRS. But they are real consequences that make it important to respond to the CP75 with whatever documentation you can gather.
Who Receives CP75 Most Often?
Divorced and separated parents. The most common EIC dispute involves two parents each claiming the same child in the same year. The tie-breaker rules for determining which parent is entitled to the EIC are specific: the parent with whom the child lived for more days during the year has the primary right to claim the credit. When custody arrangements mean the child spent close to equal time with both parents, documentation of actual days becomes critical.
Grandparents and other relatives raising children. When a grandparent, aunt, uncle, or sibling is raising a child — either permanently or temporarily — the EIC qualifying child rules allow a claim, but the non-parent relationship is examined more frequently. Documentation of the child's actual residence and relationship is essential.
Self-employed taxpayers claiming the EIC. Self-employment income reported at levels that maximize the EIC is a specific audit focus. The IRS examines whether the reported income level is consistent with business records and bank deposits.
Taxpayers with children who split time between households. Even without a formal divorce or separation order, children who spend time in multiple households create ambiguity about which taxpayer meets the residency test. The taxpayer with whom the child spent more nights during the year generally has the stronger claim — but documentation matters.
Related IRS Notices
- CP11 — Math Error / Balance Due — what can follow if the EIC is disallowed and a balance results
- CP14 — Balance Due Notice — the formal demand for payment if EIC disallowance creates an amount owed
Frequently Asked Questions
What if I qualify for the EIC but cannot find all the documents the IRS requested?
Submit whatever documentation you can locate. Partial documentation is always better than no response. If you are missing specific records, contact the source — your child's school, pediatrician, or childcare provider — and explain that you need records showing your child's address for a specific tax year. Most institutions can provide replacement records, though the process may take time. Request an extension from the IRS if you need more than 30 days.
What if my child lived with me but I have no official documentation?
This is a difficult situation. Self-prepared statements from the taxpayer are not sufficient on their own. Affidavits from neighbors, relatives, teachers, coaches, or others who can independently attest to the child's residence may be submitted, though the IRS weighs third-party affidavits less heavily than official records. If there are any official records connecting the child to your address — medical visits, school enrollment, childcare — those should be the foundation of your response.
Can I still receive the non-EIC portion of my refund while CP75 is under review?
In many cases, yes. The IRS holds the portion of your refund attributable to the Earned Income Credit while the examination is pending. If your refund includes withholding, other credits, or other refundable amounts beyond the EIC, those portions may be released separately. The CP75 will indicate whether the full refund is held or only the EIC portion.
What if I claimed the EIC but now realize I did not qualify?
Respond to the notice indicating that you are conceding the EIC claim. The IRS will remove the credit from your return and either reduce your refund accordingly or issue a balance-due notice if the removal results in a tax liability. Proactively conceding a claim you realize was incorrect is generally treated more favorably than having the IRS formally disallow it.
What happens if I do not respond at all?
The IRS will disallow the EIC and recalculate your return. If this results in a reduced refund, you will receive a smaller check or no check. If it results in a balance due, you will receive a CP11 or similar notice stating the new amount owed. The two-year or ten-year ban on future EIC claims requires additional findings by the IRS and is not automatic upon non-response.
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If you received a CP75 and want to understand how the EIC examination might affect your overall tax situation, the FreshStartGuide eligibility tool can help.