The IRS conducts audits-by-mail to verify a taxpayer’s eligibility for child-based refundable credits such as the Earned Income Tax Credit. Typically, we hold the refund until the audit is complete.
For Earned Income Tax Credit audits, you’ll usually need to provide documentation verifying your relationship to the children claimed and that they lived with you for more than half the year. For information on the documents you can submit, visit the Form 886H-EIC Toolkit at irs.gov/f886htoolkit.
If you aren’t sure you qualify for the credits claimed, you can visit the Interactive Tax Assistant at irs.gov/ita or the EITC Assistant at irs.gov/eitc.
Send us copies of the requested documents with the reply sheet to show that you can claim the credits. You can securely upload your documents through the Document Upload Tool on irs.gov or send them by mail or fax. If you are mailing your information, do not send original documents.
If we accept your return as filed, you will receive your refund in 6 to 8 weeks if you owe no other taxes or legal debts.
If the documents don't verify the audit issues or you don’t respond, we’ll send you a Form 4549 audit report. The report shows the amount of tax owed or the corrected refund amount.
If you agree with our proposed changes, sign and return the second page of the Form 4549.
If you don’t respond to the Form 4549, or the information that you provide is not sufficient, you’ll receive a Statutory Notice of Deficiency which is the next legal step and allows you to petition the U.S. Tax Court. You can continue to work with us to resolve your issue. However, the IRS cannot extend the time to petition the U.S. Tax Court.
If we don’t accept your documents and you disagree with our findings, you may request an appeal by filing a written protest and sending it to the address on the letter.