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A CP79 notice means the IRS has disallowed your Earned Income Tax Credit (EITC) claim — typically after a CP75 audit in which the documentation you submitted wasn't sufficient to establish your eligibility. The notice will tell you the credit has been denied, explain the reason, and inform you of your right to appeal the decision.
One of the most serious consequences of a CP79 is the two-year ban on claiming the EITC. If the IRS finds that you claimed the credit without meeting the eligibility requirements — whether due to reckless or intentional disregard of the rules — you may be barred from claiming the EITC for two tax years following the year of the disallowance. If the IRS determines the error was fraudulent, the ban extends to ten years. These bans are enforced at the system level — even if you file a correct return in a future year, the IRS will automatically deny the credit for the duration of the ban period.
If you disagree with the disallowance and believe you do qualify for the EITC, you have the right to appeal. The CP79 will explain how to file a protest with the IRS Office of Appeals, and you typically have 30 days from the date of the notice to request reconsideration or appeal. In your appeal, you can submit additional documentation you weren't able to provide during the initial audit — for example, a letter from your child's school confirming the address, or additional records establishing the child's residency.
If the disallowance is based on a misunderstanding or lack of documentation (rather than actual ineligibility), winning an appeal is possible with the right evidence. If you genuinely don't qualify — for example, the child claimed didn't meet the residency test — accepting the disallowance and avoiding the credit in future years unless you clearly qualify is the right course of action. To claim the EITC in a future year after a disallowance, you'll need to file Form 8862 (Information to Claim Certain Refundable Credits After Disallowance) with your return to certify eligibility.