The CP75E means the IRS examined your EITC claim and disallowed it. After reviewing the documentation you provided (or didn't provide) in response to the CP75, the IRS determined you don't qualify for the Earned Income Tax Credit as claimed.
Consequences of Disallowance
The immediate impact is financial: the credit is removed and you owe the difference plus interest. If you already received a refund that included the EITC, you owe the EITC amount back. But the longer-term consequence can be worse: a potential 2-year or 10-year ban on claiming EITC in the future.
If the disallowance was due to reckless or intentional disregard of the rules, the IRS imposes a 2-year ban. If fraud was involved, the ban extends to 10 years. During the ban period, you cannot claim EITC regardless of whether you qualify, and reclaiming the credit after the ban requires Form 8862.
Your Appeal Rights
You have the right to appeal the disallowance. The CP75E should include information about requesting a conference with the IRS Office of Appeals. If you have documentation that proves your eligibility, present it during the appeal. Appeals Officers can reverse disallowances when the evidence supports the claim.
If you don't appeal and a statutory notice of deficiency is issued, you can petition Tax Court within 90 days. But Appeals is usually faster, cheaper, and more informal.
Don't Accept Without Review
Before accepting the disallowance, review whether you provided all requested documentation. If the IRS denied the credit because you sent incomplete information, gathering the missing documentation and presenting it through Appeals may reverse the decision.
If your EITC was disallowed, call us at (813) 229-7100. We handle EITC appeals and know what documentation is needed.