EITC Electronic Rejects, Notices and Correspondence

 

Number

What Does it Mean?

How to Respond

Electronic Reject Code

504

Dependent's Name and SSN do not Match our Records

Secure SSN card

Correct record and re-transmit  

501

Qualifying Child's Name and SSN do not Match our Records

506

Qualifying Child has been Claimed as Qualifying Child on Another Return

Secure SSN card

Correct record

If SSN is correct and client is entitled to claim dependant, file a paper return

535

Qualifying Child SSN and Year of Birth do not match Social Security Data

Secure SSN card

Correct record and re-transmit

Changes Made at Processing

CP 11-A

Changes to Tax Return, Balance Due 

Changes were made to return including adjustment to EIC during processing resulting in a balance due.

If client agrees with adjustment then pay the amount due 

If client doesn't agree with adjustment, call the number on the notice.

CP 12

Changes to Tax Return, Overpayment

Changes were made to return during processing resulting in a refund

If client agrees with adjustment, no action necessary

If client doesn't agree, call the number on the notice

CP 13-A

Change Made to Return, No Tax Impact

Changes were made to return during processing resulting in a change in EIC - No refund or balance due 

Audit Notices

CP 75/75-A

EIC Portion of Refund is Being Held Pending Review Client must supply information requested in the letter within 30 days

525/915/950

Standard 30 Day Letter

Audit has been conducted.

Conveys audit report.

Client has 30 days to respond and request appeal.

Review audit report 

  • If client agrees, sign report and pay any tax  due  
  • If client doesn't agree, prepare protest

Respond to letter timely to protect appeal rights.  

531

Statutory Notice of Deficiency 

Legal notice sent to taxpayers by certified mail.  Notice gives taxpayers the right to file a tax court petition.  If a petition is not filed within 90 days, the IRS will assess tax.  

Client has three choices for action:

  • TIMELY Petition tax court
  • Agree
  • Don't respond and let the IRS assess the tax

CP 79

What You'll Need To Do The Next Time You Claim an Earned Income Credit  

Notification that client will need to file Form 8862, Information to Claim Earned Income Credit After Disallowance,  the next time they claim EIC because it has been  reduced or disallowed

No action necessary until the client files another return claiming EIC

 8862 must accompany next return claiming EIC

CP 79A

Why We Assessed 2 Year Ban  

Notification that 2 year ban has been assessed and indicates the earliest year client may be able to claim EIC again

No action necessary until the ban expires.

Client must file Form 8862 with their next return claiming EIC

CP 85A/B/C

Please Help Us Confirm Your -  

IRS questions whether the client filed a return claiming EIC using an incorrect filing status, claiming a child who is not a qualifying child, or claiming incorrect Schedule C income

Review the applicable tax law and eligibility issues with the client

  • If the return is correct, no action is necessary
  • If the return is incorrect, file an amended return

CP 87A/B/C/D

You Need to Make Sure Someone is Your Dependant or Qualifying Child    

IRS questions whether the client filed a return claiming a dependent in error. These notices cover individuals claimed as dependents on more than one return, individuals who filed as  primary on a return and are claimed as a dependant on another return, returns claiming a dependant who filed a return and claimed income above the guidelines set out in IRC ยง 152, or individuals claimed as dependents who also filed a joint return

Review the tax law and eligibility issues with the client

  • If the return is correct, no response required
  • If the return is not correct, prepare and file an amended return      

CP 2000

The income and/or payment information documents that IRS has on file do not match entries on the tax return.

Review the tax return and disputed information with the client 

  • If notice is correct, have client complete the attached response form and mail 
  • If client does not agree with the notice, either call or submit documentation to support return by mail 

Respond in timely manner

 

 Return to Tools and Tips main page

 

Page Last Reviewed or Updated: 31-Jan-2014