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Earned Income Credit disallowed?
In 1999 and 2000 the Irs disallowed my earned income credit for my niece who I was financially supporting because I didnt have legal custody of her and for some reason my own son who I did have and was the sole providor for because the school that he attended shut down and I didnt have any proof of records that he attended, so they disallowed my earned income credit for 1999, then in 2000, I claimed only my son and they disallowed it AGAIN. Now, 8 years later, the IRS is trying to garnish my wages and I requested an audit, but they tell me I have to pay it first, then they will give me an audit. What should I do? This is not fair and my tax situation is a mess. I owe them like 1900$
These are both really good answers. Thank you. My sister and my niece were both living with me and my sister was not working and I was supporting them both financially ie; food, living, etc. I have always had sole custody of my son and was the sole provider for him and no one was able to claim him. I can agree with my niece, but now what do I do to get my credit back for my son and why should I be disallowed? Thank you in advance.
2 Answers
- Anonymous1 decade agoFavorite Answer
So figure out a way to pay it.
You flunked the first exam/audit (that was when they asked you for proof, didn't like the information you provided and disallowed the EIC). You were eligible for an audit reconsideration, but that requires NEW information that wasn't considered the first time. If you didn't have then, why would you have it now???
EIC is a benefit provided from other taxpayers' dollars. If you weren't eligible, you shouldn't have gotten the money. Due the sheer amount of fraud, the IRS MUST question all claims.
It appears you were put in currently not collectible status until you started working again. CNC does not make the debt go away...it was out there growing and growing and when you finally started working again, the IRS noticed and is now asking you to pay. Unless you moved and the IRS no longer had a valid address for you, you would have received an annual notice of how much you owed.
PS, in 1999 and 2000, to claim EIC, you had to prove a legal relationship to the child. If you were asked to show legal custody, either this wasn't the daughter of your brother or sister (thus not really a niece) or someone else was also claiming the child and the IRS was trying to figure out who had a valid claim.
The same is true for your son. Who else would have been trying to claim him? Why wouldn't the IRS think he was living with you? Where were you living? Could you show that you were in fact supporting both the yourself and the child? School records weren't the only documents you could use, but it sounds like you had nothing.
- JudyLv 71 decade ago
Had your niece been living with you for over half that year, or were you supporting her and she lived somewhere else? If so, you weren't allowed to claim EIC for her. For your son, was the issue that they wanted proof he lived with you and you couldn't provide that? Other items than school records can be used as proof.
Once EIC that you claimed has been disallowed, you aren't eligible to get it for a number of years even if you otherwise qualify - that's probably what happened the next year.
If you got EIC for 1999 that you weren't entitled to, yes they expect you to pay it back. There is a huge amount of fraud with EIC claims, so they do audit things and require proof.
