Which credits does CP74 cover?

The IRS says CP74 applies only to credits you claimed using Form 8862 because they were denied in an audit from a prior year. Those may include the Earned Income Tax Credit, American Opportunity Tax Credit, Child Tax Credit, Additional Child Tax Credit, and Credit for Other Dependents.

When will I get my refund?

The IRS says you should receive it within 6 weeks as long as you do not owe other taxes or debts. If not, call the number on your notice.

Do I need to file Form 8862 again next year?

Read the Form 8862 instructions each year. Recertification addresses the prior disallowance, but you still must meet every eligibility rule for each credit you claim.

Does CP74 mean my return cannot be audited?

No. CP74 confirms the credits claimed with Form 8862 were accepted after review. It is not a promise about future examinations.

What if I get a CP79 instead next year?

A CP79 series notice means the IRS denied credits. Read it closely, because some versions apply a ban period and others require recertification again. The response options and deadlines are printed on that notice.

Should I keep the documents I sent with Form 8862?

Yes. Keep copies of everything you used to prove eligibility, together with this notice and the return. They are the first thing you will need if the same credit is questioned later.

IRS CP74: You Are Recertified to Claim Your Credits

CP74 means the IRS accepted your Form 8862 and you can claim EITC or other credits again after a prior denial. What it covers and what to keep.

What CP74 means

CP74 is good news, and there is not much of it in IRS mail. The IRS reviewed the Form 8862 you filed, and you showed that you are eligible for the credits you claimed. The IRM lists it as Successfully Recertified to Claim Credits (Form 8862).

The IRS's own words: you're all set, and you don't need to do anything else.

Why you got it

At some point the IRS denied one or more of your credits in an audit. After that kind of denial, the law does not let you simply claim the credit again the next year. You must first show you qualify.

For the Earned Income Tax Credit, the rule is in IRC 32(k)(2). If the credit was denied through the deficiency procedures, no credit is allowed for a later year unless you provide the information the IRS requires to show eligibility. Form 8862, Information to Claim Certain Credits After Disallowance, is how you provide it. The IRS says the same process may apply to the American Opportunity Tax Credit, Child Tax Credit, Additional Child Tax Credit, and Credit for Other Dependents.

You filed the form. The IRS reviewed it. CP74 is the result.

What it covers, and what it does not

The IRS is careful about scope. CP74 applies only to the credits you claimed on the return using Form 8862. The IRS reviewed those credits only because they were denied in an audit from a previous year.

It does not approve every number on your return, and it does not mean you are permanently cleared. Each year you claim a credit, you must meet that year's requirements: the relationship, residency, and age tests for qualifying children, income limits, valid identification numbers, and the rest.

Recertification opens the door again. It does not hold it open for you forever.

When the refund arrives

The IRS says that if you are expecting a refund, you should receive it within 6 weeks, as long as you don't owe other taxes or debts. If you owe a past-due federal balance, child support, or certain other debts, some or all of the refund may be applied to those instead. If 6 weeks pass and you haven't received it, call the number on your notice.

Bans are different

CP74 is about the recertification requirement after an ordinary denial. Some taxpayers face something more serious: a ban. IRC 32(k)(1) bars the Earned Income Tax Credit for 2 years after a final determination that a claim was due to reckless or intentional disregard of the rules, and for 10 years after a final determination of fraud. During a ban period, the credit is not allowed, and Form 8862 does not change that.

If you received a CP79A or a CP79 in an earlier year, check which situation applied before you claim credits again.

What the IRS actually checked

For a qualifying child, the Earned Income Tax Credit uses the qualifying child definition in IRC 152(c), with changes. IRC 32(c)(3)(C) requires the child's principal place of abode to be in the United States for the residency test, and IRC 32(c)(3)(D) requires the child's name, age, and identification number on the return. Those are the kinds of facts a recertification review looks at, along with relationship and age.

That is useful to know because it tells you what to keep. The same facts will matter next year.

What to do now

Keep the notice. The IRS suggests keeping a copy for your records in case you need it later.
Store it with the return, Form 8862, and the documents you used to prove eligibility.
Watch for the refund within the 6-week window.
Before next filing season, review the credit rules again in Publication 596 (Earned Income Credit), Publication 970 (education credits), and Publication 972 (Child Tax Credit and Credit for Other Dependents).

Records that keep you out of trouble next year

Most credit denials come down to proof that a child lived with you for the required time, or proof of the relationship. Keep school records, medical records, leases, and other documents showing the child's address. Keep birth certificates or other documents showing the relationship. For education credits, keep Form 1098-T and receipts. If the IRS asks again, you will have the answer in one folder instead of scattered across three drawers.

If the refund does not match

If the refund is smaller than you expected, look for an offset notice or an adjustment notice. A change to a different item on the return can reduce the refund even though the credits were accepted. Compare any notice you receive with your copy of the return line by line.

A short checklist for next year

Did the child live with you, in the United States, for the time the rules require?
Is the relationship one the law recognizes, and can you document it?
Does the child meet the age test for the credit you are claiming?
Does every person on the return have a valid identification number?
Is your income within the limits for that year?
Could anyone else claim the same child, and if so, have you agreed who will?

If any answer is uncertain, resolve it before you file. A second denial is far harder to unwind than a first.

What not to do

Do not throw CP74 away because it is good news. It is proof that you completed recertification.

Do not assume a different credit is approved because one was. Recertification applies to the credits reviewed through Form 8862.

Do not let a preparer claim credits without the documents to back them up. The paperwork you gathered for this review is the same paperwork an examiner would ask for.

The law behind CP74

IRC 32(k)(2) requires a taxpayer whose Earned Income Tax Credit was denied through deficiency procedures to demonstrate eligibility before claiming it again. IRC 32(k)(1) imposes the separate 2-year and 10-year bans. Form 8862 is the IRS form for recertification. IRM 3.14.1 lists CP74 among the IMF notices the IRS issues.

If you have questions about claiming credits after a past audit, call us at (813) 229-7100.