CP 75/CP 75A/CP 75B - EIC Portion of the Refund Delayed - Z Tax & Accounting

Receiving IRS Notice CP75, CP75A, or CP75B means the IRS is reviewing or examining the Earned Income Credit (EIC) claimed on your tax return before releasing the refund. At Z Tax & Accounting, we help taxpayers respond to IRS examinations, verify eligibility for tax credits, and resolve federal and state tax issues professionally.

These notices are commonly issued when the IRS needs additional information to verify eligibility for the Earned Income Credit before issuing the refund.

What Are IRS Notices CP75, CP75A, and CP75B?

The CP75 series notices inform taxpayers that the IRS is delaying all or part of the refund while reviewing the Earned Income Credit (EIC), also known as the Earned Income Tax Credit (EITC).

The notices generally explain:

• Why the IRS is reviewing the return

• Which portion of the refund is being delayed

• What documentation is required

• Deadlines for responding

• Additional forms that may need to be completed

The IRS may request supporting documentation to verify eligibility for the claimed credit.

Why Did the IRS Send a CP75 Series Notice?

The IRS may issue CP75 notices when additional verification is needed involving:

• Qualifying children

• Residency requirements

• Earned income amounts

• Filing status

• Dependent relationships

• Income documentation

• Taxpayer identification information

Because the Earned Income Credit is a refundable credit, the IRS closely reviews returns claiming the credit to reduce fraud and improper payments.

What Is the Earned Income Credit (EIC)?

The Earned Income Credit is a refundable tax credit available to certain low-to-moderate income taxpayers who meet specific eligibility requirements.

The credit may provide significant tax refunds even if no taxes are owed.

Eligibility generally depends on:

• Earned income

• Filing status

• Number of qualifying children

• Residency requirements

• Social Security number requirements

• Investment income limitations

What Documentation May the IRS Request?

IRS Notices CP75, CP75A, and CP75B often request documents proving eligibility for the Earned Income Credit.

Requested documentation may include:

• Birth certificates

• School records

• Medical records

• Lease agreements

• Utility bills

• Daycare records

• Employer statements

• Wage records

• Proof of residency

• Relationship documentation

The IRS may also include forms that must be completed and returned with supporting documentation.

Important IRS Response Deadline

The IRS generally requests taxpayers respond within approximately 30 days from the notice date.

Failing to respond timely may result in:

• Denial of the Earned Income Credit

• Reduction of the refund

• Additional IRS examinations

• Delayed refund processing

Prompt and accurate response is important to help resolve the review efficiently.

What Should You Do After Receiving a CP75 Notice?

If you receive IRS Notice CP75, CP75A, or CP75B, you should:

• Carefully review the notice

• Identify the documents requested

• Gather supporting documentation

• Complete any forms included with the notice

• Respond before the IRS deadline

Only copies of requested documents should generally be sent unless the IRS specifically requests originals.

Common Reasons the IRS Delays EIC Refunds

The IRS frequently reviews EIC claims involving:

• Shared custody situations

• Multiple taxpayers claiming the same child

• Income inconsistencies

• Incorrect filing status

• Identity verification concerns

• Missing documentation

• Prior EIC disallowances

Professional review of the notice and supporting documents may help avoid delays or denials.

What Happens If the IRS Denies the EIC?

If the IRS determines the taxpayer is not eligible for the Earned Income Credit:

• The refund may be reduced

• Additional taxes may be assessed

• Penalties or interest may apply

• Future EIC claims may be restricted in some situations

Taxpayers generally have rights to appeal or dispute IRS determinations.

Professional IRS Examination Assistance

At Z Tax & Accounting, we assist taxpayers with:

• IRS Notices CP75, CP75A, and CP75B

• Earned Income Credit reviews

• IRS examinations and audits

• Refund delay issues

• IRS document responses

• Tax credit eligibility reviews

• IRS appeals and collections

• Federal and state tax issues

Our experienced IRS Enrolled Agents are admitted to practice before the IRS and provide professional representation for taxpayers nationwide.

Contact Z Tax & Accounting Today

If you received IRS Notice CP75, CP75A, or CP75B and need assistance responding to an Earned Income Credit review or refund delay,  contact Z Tax & Accounting today.

We help taxpayers resolve IRS notice issues, protect their rights, and navigate complex tax matters with professionalism and confidence.

Call us today at (214) 699-4790 for professional IRS notice and tax resolution assistance.