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What should I do about the conflicting information regarding my Earned Income Credit (EIC) eligibility? I received a check for the EIC amount and a letter stating I was eligible after a long process, but now I've received a new letter stating I do not qualify. Should I be concerned about this letter, and what steps should I take to resolve the issue with the IRS?
What should I do about the conflicting information regarding my Earned Income Credit (EIC) eligibility? I received a check for the EIC amount and a letter stating I was eligible after a long process, but now I've received a new letter stating I do not qualify. Should I be concerned about this letter, and what steps should I take to resolve the issue with the IRS?
Robert James, 20+ years of experience in IRS matters
Answered on September 27,2023
Answered on September 27,2023
Can you check your Account transcript online for 2021?
The last three transaction codes you see should be 768 EIC, 846 Refund Issued, and 776 Interest credited to your account.
If you see anything after that, like 765 EIC reversal, that would indicate that IRS removed the EIC. If you don't see anything after the Refund issued & Interest credit transactions, I think it's safe to assume this was some kind of booboo.
You can also check your 2022 Account transcript - you might see a 290 Additional tax assessed transaction for $0, which is an indication that IRS checked your account but didn't make any changes.
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