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CP02 notice: what it means and what to do
Got an IRS CP02 notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP02 notice freeWhat the IRS says this notice is about
You may not be entitled to some or all of the Earned Income Tax Credit (EITC) you claimed on your tax return, and you may need to amend your return.
What you need to do
- Review the rules for claiming the EITC.
- Use the online EITC Assistant tool to determine your eligibility for the credit and to verify if your children meet the criteria for claiming the credit.
- If you correctly claimed the EITC, you don't need to do anything.
- If you claimed the EITC in error or claimed more of a credit that what you qualify for, file Form 1040-X, Amended U.S. Individual Income Tax Return , to remove or recalculate the credit.
Your deadline
Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.
What to check before you answer
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
You may want to
- Learn more about the most common errors when claiming the EITC.
- Download any needed forms and publications online .
Common questions
What will happen if I didn't qualify for the EITC and don't amend my taxes for that year?
We may audit your claim and deny all or part of the credit. We may also impose a 2- or 10-year ban for claiming the credit or assess a penalty against you.
IRS denied or reduced my EITC in the past, but I now qualify for the credit. What do I need to do to claim it on future tax returns?
You may need to file Form 8862, Information to Claim Certain Credits After Disallowance , with your next tax return.
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