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CP79 key facts
| Official name | CP79: Before you can claim certain credits on a future tax return, you must show you're eligible to receive the credits for the audited year. |
|---|---|
| Who gets it | Individuals |
| Severity | 2 of 5: Low: check it and respond if asked No action is needed now, but it affects how you claim valuable credits on future returns. |
| Response window | No response deadline. The IRS says: "You don't need to take any action at this time." To claim the affected credits on a future return, you must attach Form 8862. |
| Deadline basis | No fixed deadline. |
Severity is RAHA Financials' own 1 to 5 rating of how urgent the notice usually is. It is not an IRS classification.
How long do I have to respond to a CP79?
No fixed response deadline. The IRS doesn't set a fixed response window for CP79. Read the notice to see whether it asks you to do anything.
The date printed on your notice always controls. Open CP79 in the IRS Notice Decoder.
Why did I get a CP79?
Common reasons include:
- An audit denied or reduced your Earned Income Tax Credit
- An audit denied or reduced your Child Tax Credit, Additional Child Tax Credit, or Credit for Other Dependents
- An audit denied or reduced your American Opportunity Tax Credit
- You couldn't show that a child met the qualifying child tests (such as relationship or residency) for the audited year
What should I do?
- Read the notice to see which credits were denied or reduced and for which year.
- Review the notice with your tax preparer, if you use one.
- Review the eligibility rules for the credits before you claim them again.
- When you next claim an affected credit, complete Form 8862, Information to Claim Certain Credits After Disallowance, and attach it to your return.
- If you disagree with the audit result, you may ask for reconsideration and send documents showing you qualified for the credits in the audited year.
What documents do I need?
- The CP79 notice and the audit report or letters from the audited year
- Proof of each child's relationship to you (for example, birth certificates)
- Proof the child lived with you (for example, school, medical, or lease records)
- Proof of your earned income for the year
- For the American Opportunity Tax Credit, education records such as Form 1098-T and receipts
What should I avoid?
- Don't claim the affected credits on a future return without attaching Form 8862.
- Don't assume this notice is a bill; it doesn't ask for payment.
- Don't send reconsideration requests without documents that support your claim for the audited year.
What if I disagree with a CP79?
The IRS says you may request a reconsideration of the audit and send documentation showing you are entitled to the credits for the audited year.
What happens if I ignore a CP79?
No immediate action is required. However, if you claim the affected credits on a future return without attaching Form 8862, the IRS may not allow them.
What else should I know about CP79?
CP79 is the mildest of the credit-disallowance notices. It doesn't bar you from the credits. It adds a step: next time you claim them, you must attach Form 8862 to show you now qualify. IRS guidance treats bans separately. A final IRS decision that a claim was due to reckless or intentional disregard of the rules brings a 2-year ban, which the IRS communicates with a CP79A notice. A decision of fraud brings a 10-year ban. Two details are easy to miss. First, the IRS says you may still claim the Earned Income Credit without qualifying children without attaching Form 8862. Second, IRS guidance says you may not need Form 8862 if you received a CP74 notice saying the IRS recertified you.
Want a professional to handle your CP79 response?
IRS Notice Response Plan
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- Review of your notice and account transcript
- A written plan: agree, partly agree, or dispute
- Draft response and list of supporting documents
- Deadline tracking so nothing lapses
CP79: frequently asked questions
What do I need to do to claim these credits in the future?
The IRS says you must complete Form 8862, Information to Claim Certain Credits After Disallowance, and attach it to your return.
Which credits does this notice cover?
The IRS lists the Earned Income Tax Credit, American Opportunity Tax Credit, Child Tax Credit, Additional Child Tax Credit, Refundable Child Tax Credit, and Credit for Other Dependents.
Can I still claim the Earned Income Credit without children?
The IRS says you still may be able to claim the Earned Income Credit without qualifying children and without attaching Form 8862.
Does a CP79 mean I'm banned from claiming the credits?
The CP79 page doesn't describe a ban; it says you must show eligibility with Form 8862. Separate IRS guidance says a 2-year ban applies when the IRS makes a final decision that a claim was due to reckless or intentional disregard of the rules, and a 10-year ban applies when it was due to fraud. The IRS uses a different notice, CP79A, to tell you about a 2-year ban.
What if I disagree with the audit?
You may request a reconsideration and send documentation showing you were entitled to the credits for the audited year.