What this notice is about
We're auditing your tax return and need documentation to verify the income and withholding you reported. This may affect your eligibility for the Earned Income Credit (EIC), dependent exemption(s), and other refundable credits you claimed. We’re holding your refund pending the results of the audit.
What you need to do
- Read the notice and the enclosed forms carefully. They explain the information you must send to us.
- Provide copies of the documentation we request to verify the items we're auditing.
- Complete the Response form by showing which items your supporting documentation addresses and return the form with the documents you are submitting.
You may want to
- Review this notice with your tax preparer.
- Review the rules for claiming EIC and make sure your child meets the four tests: the relationship, age, residency and joint return tests, to qualify for the credit. Read more about the qualifying child rules.
- Find out if you can claim EIC if you don't have a qualifying child. Find the rules for those without a qualifying child here.
- Call us for assistance at the toll-free telephone number listed in the top right corner of your notice
Frequently asked questions
While we accept most returns as filed, we select some for examination. We examine (or audit) some federal tax returns to determine if income, expenses, and credits are reported accurately. We select returns for examination using various methods including random sampling, computerized screening, and comparison of information we receive, such as Forms W-2 and 1099. Having your return selected for examination doesn't suggest you made an error or were dishonest.
The amounts you reported on the wages and withholding lines of your tax return appear incorrect.
No. You must be married to the child's parent during the tax year in question to receive the credit.
Refer to the enclosed forms we sent with your notice. A separate form for each audited item explains what supporting documentation to send.
We'll disallow the audited items and send you an examination report showing the proposed changes to your tax return.
Contact us at the number listed on the top right corner of your notice. You can also refer to our identity theft resource page for more information.
Yes, you should continue to file all required tax returns before the due date to avoid additional penalties and interest.
- Publication 596, Earned Income Credit (PDF)
- Publication 970, Tax Benefits for Education (PDF)
- Publication 972, Child Tax Credit (PDF)
- Publication 3498-A, The Examination Process (Audits by Mail) (PDF)
- Publication 3598, The Audit Reconsideration Process (PDF)
Tips for next year
Avoid errors that can delay your refund or result in us denying your EIC claim. Find out the most common errors in claiming EIC.