CP75A Notice: What Is It and How Should You Respond?
Summary:
The CP75A Notice from the IRS indicates that your tax return is under audit, specifically to verify items related to the Earned Income Credit (EIC), dependents, and your filing status. Receiving a CP75A notice means you need to provide documentation to substantiate the claims you made on your tax return. This guide explains what to do, how to respond, and how to ensure you remain compliant with IRS regulations during the audit process.
Receiving an IRS notice can be overwhelming, especially when it involves an audit. The CP75A Notice informs taxpayers that their tax return is being audited to verify specific information related to the Earned Income Credit (EIC), dependents, or filing status. This notice typically asks you to submit supporting documentation to confirm your eligibility for these credits and deductions. In this guide, we will break down everything you need to know about the CP75A Notice, how it impacts your tax filing, and what steps you need to take to respond efficiently.
Understanding the process behind the CP75A audit can reduce stress and help ensure a smooth response, minimizing delays and avoiding penalties.
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What is the CP75A IRS notice?
The CP75A Notice is an official IRS letter informing taxpayers that their tax return has been selected for audit. The IRS specifically seeks to verify items such as the Earned Income Credit (EIC), dependents, and filing status. These items are frequently flagged for review due to common errors or discrepancies.
The notice outlines the documentation the IRS requires to validate the claims made on your tax return. The IRS may question the eligibility of your dependents or your right to claim the EIC, a credit designed to assist low-to-moderate-income working individuals and families.
In essence, the CP75A Notice is a request for additional documentation to substantiate the claims on your tax return. You are not accused of wrongdoing, but rather the IRS needs proof to support the tax benefits you have claimed.
Pro Tip
Set up IRS account alerts online to get real-time notifications on any changes to your tax return or account. This helps you stay updated on adjustments and due dates.
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Why is the IRS auditing your tax return?
The IRS audits returns for several reasons, and in the case of the CP75A Notice, the audit typically focuses on verifying credits and deductions. The most common triggers for this notice are:
- Earned Income Credit (EIC) claims: The EIC is a refundable tax credit aimed at benefiting low-to-moderate-income workers. The IRS regularly audits EIC claims to ensure that individuals meet the eligibility requirements.
- Dependents: The IRS wants to confirm that the individuals listed as dependents meet the necessary requirements related to relationship, residency, and other qualifying factors.
- Filing status: Sometimes, the IRS audits returns to verify that your filing status (e.g., head of household, single, married filing jointly) is accurate and aligns with your financial situation.
What should you do when you receive a CP75A notice?
Receiving a CP75A Notice can feel daunting, but responding promptly and accurately is essential. Here are the key steps to take:
- Read the notice carefully: Review the enclosed forms and instructions. The notice will explain exactly what information the IRS is auditing and the specific documentation they need.
- Gather supporting documentation: Collect the documents requested to verify your Earned Income Credit, dependents, and filing status. This could include birth certificates, school records, medical records, or any documents proving residency or relationship for dependents.
- Complete the response form: The notice will include a response form. Indicate which items your documentation addresses and include it with your response.
- Submit your documents: You can send your documentation by mail or fax. If faxing, ensure you use a secure method to protect your information. Be sure to include the fax cover sheet or mailing instructions provided in the notice.
- Review with your tax preparer: If you used a tax preparer or CPA to file your return, consult them to ensure the correct documentation is being submitted. They can help review the notice and provide guidance.
- Contact the IRS if needed: If you need clarification or assistance, call the toll-free number provided at the top of the notice. The IRS can answer any questions about the specific documents required.
Pro Tip
Always keep copies of the documents you submit to the IRS. This helps if you need to refer back to them later or in case additional information is requested.
How to respond to the CP75A notice
Steps to take when responding
To respond to the CP75A Notice, follow these steps carefully:
- Check your eligibility: First, verify that you meet the eligibility criteria for the Earned Income Credit (EIC) or dependent-related tax credits in question. Make sure your dependents meet the relationship, residency, and joint return tests, as applicable.
- Submit the correct documentation: The IRS will not process your audit unless you provide adequate proof. Double-check that the documentation you are submitting clearly demonstrates your eligibility for the credits or deductions in question.
- Send your documents by mail or fax: Use the IRS mailing address or fax number provided on your notice. When faxing, ensure that you use a secure service, and keep a confirmation receipt for your records.
- Retain copies: Always keep copies of the documents you submit to the IRS for your personal records. This is important in case you need to refer back to them or provide additional information in the future.
What happens if you don’t respond to the CP75A notice?
If you fail to respond to the CP75A Notice within the specified timeframe, there could be significant consequences:
- Your tax return will remain unprocessed, delaying any refunds you may be entitled to.
- You may lose eligibility for the Earned Income Credit or any deductions related to dependents or filing status, resulting in a higher tax liability.
- The IRS may apply additional penalties and interest, depending on the length of time the issue goes unresolved.
- In severe cases, the IRS could take enforcement actions, such as garnishing wages or levying fines.
Further support options for addressing the CP75A notice
If you’re unsure how to proceed after receiving a CP75A Notice, here are some resources you can turn to:
- Consult a certified tax professional, such as a CPA or tax attorney, who can guide you through the audit process and help you gather the necessary documentation.
- Visit the IRS website for additional information on the CP75A Notice, or contact their support hotline for assistance.
- Reach out to your local IRS office or a taxpayer advocate service if you’re facing difficulties in resolving the issue.
Pro Tip
Consult a tax professional before responding to the CP75A notice to ensure all your documentation is correct and complete, reducing the chance of delays or penalties.
Potential penalties or next steps if you don’t respond
If you fail to respond to the CP75A Notice, several negative outcomes are possible:
- Your tax return may remain unprocessed, leading to delayed refunds.
- Additional penalties and interest may be applied to your account, depending on how long the issue goes unresolved.
- In extreme cases, the IRS may escalate enforcement actions, including wage garnishment or fines.
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Frequently asked questions
What should I do if I can’t gather all the required documentation?
If you’re unable to collect all the necessary documentation, it’s important to still respond to the IRS within the deadline. Send the documents you do have and include a written explanation detailing why certain documentation is missing. In some cases, the IRS may grant you additional time to gather the necessary paperwork or provide alternative ways to verify your eligibility.
How long do I have to respond to the CP75A notice?
The CP75A Notice will indicate the exact timeframe by which you must respond, typically within 30 days from the date of the notice. Failing to meet this deadline could result in the IRS disallowing your Earned Income Credit (EIC) or other deductions, potentially increasing your tax liability. If you need more time, contact the IRS directly to request an extension.
Can I dispute the IRS’s findings after submitting documentation?
Yes, if you disagree with the IRS’s determination after submitting the required documentation, you can dispute their findings. The notice you receive from the IRS will include information on how to appeal the decision. You may also want to consult a tax professional for assistance with the appeal process to ensure your rights are protected.
What happens if someone else fraudulently claimed my dependents?
If you believe that someone else has fraudulently claimed your dependents or EIC, you should inform the IRS as soon as possible. The IRS may ask for additional documentation to resolve the issue and verify your rightful claim. You may also want to review your tax return for signs of identity theft, and consider filing Form 14039, Identity Theft Affidavit, if you suspect that your personal information has been compromised.
Can I claim the Earned Income Credit (EIC) if I don’t have any qualifying children?
Yes, it’s possible to claim the EIC even if you don’t have qualifying children, as long as you meet certain income and filing status requirements. The IRS will still review your eligibility during the audit, so be sure to provide all the necessary documentation related to your income, filing status, and residency, as outlined in the notice.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- A CP75A Notice is issued when the IRS audits your tax return to verify the Earned Income Credit (EIC), dependents, or filing status.
- Respond promptly by submitting the requested documentation to avoid penalties or delays in processing your return.
- Failure to respond can result in delayed refunds, increased tax liability, and even wage garnishment or fines.
- Consult a tax professional if you’re unsure about the documents you need to submit or how to proceed.
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