What This Notice Means
CP79A tells you that you can't claim certain credits on future returns for two years. The IRS denied credits in an audit and decided your claim was due to reckless or intentional disregard of the rules and regulations. The IRS says the determination was not due to fraud.
You don't need to take any action at this time. The notice shows the year when you can claim the credits again.
Which Credits the Ban Covers
The ban applies to the credits denied in your audit. They may include:
- Earned Income Tax Credit
- American Opportunity Tax Credit
- Child Tax Credit and Additional Child Tax Credit
- Refundable Child Tax Credit
- Credit for Other Dependents
During the Ban
Don't claim the banned credits until the year shown on your notice. A claim during the ban period won't be allowed.
After the Ban
When the two years are up, you must show you're eligible before you can claim the credits again. Complete Form 8862, Information to Claim Certain Credits After Disallowance, and attach it to your return. Make sure you meet the rules first. Publication 596, Publication 970, and Publication 972 explain them.
If You Disagree
You may request a reconsideration of the audit. Send information showing you were entitled to the credits for the audited year, or showing your claim wasn't due to reckless or intentional disregard of the rules. Publication 3598 explains audit reconsideration.
What to Keep
Keep this notice with your tax records, along with the audit results. Start collecting proof of eligibility now: records of where your children lived, proof of relationship, and education records. When the ban ends, you'll need that file.
If you received a CP79A and want to know whether to challenge it, call us at (813) 229-7100.