Help With IRS Tax Audit, Representation for Earned Income Credit, Former IRS Agent

August 3, 2020
Written by: Fresh Start Tax



The IRS Earned Income Credit Audit, Call Former IRS Agents, Since 1982.

Fresh Start Tax

 

There’s nothing worse than receiving a nasty gram from the Internal Revenue Service to find out they are going out audit parts of your tax return.

One of the favorite audits that are going on with IRS right now is the earned income credit.

That is happening because the abuse that’s going on with preparers taking the earned income credit to taxpayers that are not eligible.

The IRS is going crazy on the tax returns with the EIC.

 

If you are going through an IRS tax audit need help calls today and have former IRS agents who have a combined 100 years professional tax experience in working for the IRS defend your IRS tax audit.

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Learn about the Tax Audit and what is required.

Your package to IRS should include a Form 886-H-EIC that lists all the different documents you can send to prove you may claim the EIC with one or more qualifying children.

You can send any combination of these documents to provide the information the IRS needs.

Look at the Schedule EIC you filed with your tax return and complete the following steps for each qualifying child listed:

1. you must prove you lived with your child in the U.S. for more than half the tax year:

a. If your child lived with you at the address shown on your notice, you need to send a document showing your child lived at that same address for more than half the tax year.

b. If you moved and you and your child lived at another address, you must send documents showing the same address for both of you for more than half the tax year.

c. If your child didn’t go to school, you can send in copies of medical records or a statement from a daycare provider.

d. If you need to get a statement from your child’s school, daycare or medical care provider, you can find templates here. Your school or provider can copy and paste the template to their letterhead to make sure all the required information is provided.

e. Don’t forget to check the Form 886-H-EIC for more examples of documents you can send.

f. If you can’t prove your child lived with you for more than half the tax year, you cannot get the EIC.

You must verify how you’re related to the child.

The child must be related to you in one of the ways listed on the Form 886-H-EIC.

The form gives examples of what to send to prove how you’re related.

If your child is age 19 years old or over, you must verify either that:

a. Your child was under age 24 and a full-time student for at least five months of the tax year (you can do this by sending copies of official school records), or

b.Your child is permanently and totally disabled (you can do this by sending a copy of one of the official documents shown on Form 886-H-EIC).

You must verify you, your spouse (if filing a joint return) and your child have a valid SSN:

a. To claim the EIC, you (and your spouse, if filing a joint return) must have a valid SSN issued by the Social Security Administration (SSA) by the due date of your 2019 return (including extensions).

b.Any qualifying child listed on Schedule EIC also must have a valid SSN by the due date of your 2019 return (including extensions).


You can only claim the EIC if your child lived with you for more than half the tax year in the United States. Your child must also be related to you in one of the ways listed on the Form 886-H-EIC, and be an eligible age.

Your child must meet all three of these requirements to qualify you for the EIC.

If you can’t show that your child meets all the requirements, you may still be eligible for the EIC without a qualifying child.


The IRS Dependents Test

The next item is the dependents you claimed. Your dependents are listed in the middle of the first page of your tax return. The Form 886-H-DEP lists all the documents or combination of documents you can use to prove you can claim each child listed as your dependent.

To claim a child as a dependent qualifying child, the child must have lived with you for more than half the tax year (the residency test), be related to you (the relationship test), be a certain age (the age test), and not have provided over half of his or her own support (the support test).

a. If each child listed on your Schedule EIC is the same child you claimed as a dependent, you can use the same documents you used to prove you may claim the EIC to prove the child met the tests for a dependent qualifying child. You don’t have to send in copies of the same documents or look for different ones. But, you must use the Form 886-H-DEP to see what information must be provided to verify that the child meets the support test.


The IRS Support Test

a. To meet the support test, the child can’t pay more than half of his or her own support.
b. You don’t need to send proof of support at this time.

If you received this CP75 notice, you claimed a child as a dependent qualifying child. If you find the child doesn’t meet the rules to be your qualifying child, you may be able to claim the child as a dependent qualifying relative. See the rules on the Form 886-H-DEP for a qualifying relative. If the child meets the rules, you need to send the documents listed on the Form 886-H-DEP for a qualifying relative.

The IRS Filing Status Requirement

The next item listed is filing status. Look at the first page of your tax return, the first line shows your filing status.

If you filed as head of household, you need to look at the Form 886-H-HOH that lists all the different documents or combination of documents you can send to prove that you may claim this filing status.

To file as head of household, you must pass three tests: the marriage test, the qualifying person test, and the cost of keeping up a home test.

First you must meet the marriage test:

a. If you were never married or you’re a widow or widower, don’t submit anything for the marriage test. Only submit documents for the qualifying person and cost of keeping up a home test.

b. If you’re still married and lived with your spouse at any time during the last six months of the year, you can’t file as head of household, unless your spouse was a nonresident alien at any time during the tax year. Instead, you must file either as married filing jointly or married filing separately.

c. If you were divorced or legally separated by December 31 of the tax year shown on your notice, you must send a copy of your divorce decree or separation papers.

d. If you’re still married but lived apart for the last six months of the tax year shown on your notice, you must send us documents, such as a copy of a lease agreement, showing you and your spouse lived at different addresses.

Next is the qualifying person test:

The documents you send for the EIC and to prove you had a qualifying dependent will show you meet this test. So, you don’t have to send us any more documents for this test.

The cost of keeping up a home test:

a. If you didn’t meet both the marriage and the qualifying person tests, you can’t file as head of household.

b. If you met both the marriage and the qualifying person tests, you must send documents showing you paid more than half the cost of keeping up the home that the qualifying person and you lived in for more than half the tax year.

Documents must show you paid more than half the household expenses, such as rent, utilities, groceries, repairs and maintenance. If the qualifying person was your parent, you did not have to live with your parent, but you must prove that you paid more than half of the cost of maintaining a home for your parent for the entire tax year.

c. If any other filing status other than head of household is used, no documentation is needed at this time.

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