What This Notice Means
You can't claim certain credits on future tax returns for ten years. This is the 10-year ban.
It applies to credits the IRS denied in an audit of your return where it determined your claim was due to fraud. The credits may include:
- Earned Income Tax Credit
- American Opportunity Tax Credit
- Child Tax Credit and Additional Child Tax Credit
- Credit for Other Dependents
What to Do Now
You don't need to take any action at this time. Review the notice with your tax preparer if you have one, and review the rules for claiming these credits.
Don't claim the banned credits until the year shown on your notice.
If You Disagree
You can request reconsideration of the audit. Send proof that you were entitled to the credits for the audited year, or proof that your claim wasn't due to fraud. A fraud finding is serious and a 10-year ban is a long time. If you have evidence, use it.
Claiming the Credits After the Ban
When the 10 years are up, you can't simply claim the credits again. You must show you're eligible by completing Form 8862, Information to Claim Certain Credits After Disallowance, and attaching it to your return.
Keep Filing
The ban limits which credits you can claim. It doesn't change your obligation to file your returns on time.
Keep this notice in a safe place. You'll need the end date of the ban when the time comes.
If you received a CP79B notice and want to challenge the fraud finding, call us at (813) 229-7100.