When the EITC is Denied

If a taxpayer has had an claim denied for any year after 1996, or if the claim was reduced, and not due to a mathematical or clerical error, the taxpayer is required to attach Form 8862 the next time he tries to claim the . If not, the claim is automatically denied. This type of denial is considered a clerical or mathematical error however the taxpayer still can’t claim the without completion of Form 8862.

If the EITC claim was denied due to a determination of reckless or intentional disregard of the EITC rules, the taxpayer is unable to claim the EITC for the next 2 years. If it’s determined the error was fraudulent, the ability to claim the EITC is blocked for the next 10 years.

Documents You’ll Need

Make copies of all the documents you’ll be sending to the IRS, and never send the originals. If you receive a Form 886-H-EITC, it’s because the IRS need additional documents to verify dependency exemptions or the EITC. The documents will be listed on the form and can include:

  • Paystubs, W-2s, 1099s, and other proof of income for the questioned tax year.
  • Social security card
  • Child’s birth certificate and social security card if claiming as a dependent
  • Mortgage or lease documenting at least 183 days in the residence (in most cases 6 months). If you have a P.O. Box, you’ll need to request Postal Form 1093 to show your geographical address.
  • School records for qualifying children, including date of attendance, guardian’s name, and child’s home address.
  • Notarized letter (or on official letterhead) from childcare provider documenting dates childcare was provided, along with the name of the guardians and child’s home address.
  • Medical records for the child showing service dates and child address.
  • Affidavits from friends, family and neighbors.