Now that the IRS is putting the wraps on the last installment of the Advance Child Tax Credit payments for 2021, some taxpayers who didn’t apply for other credits might get a reminder to do a little extra checking.
For some taxpayers, these notices may be the gateway to an additional refund from the IRS.
Taxpayers could get one or both of two possible notices—either a CP08 or a CP09, depending on their circumstances—and they may not understand why they suddenly got a letter from the IRS out of the blue.
Here’s a brief rundown.
Understanding the CP08 Notice
Both notices could be considered a reminder of sorts, dealing with IRS tax credits. The CP08 notice is for taxpayers who may qualify for the Additional Child Tax Credit and could be eligible to receive additional money.
This notice urges taxpayers to read its instructions carefully and to fill out the Additional Child Tax Credit worksheet that’s attached to Form 15110.
If the worksheet verifies that the taxpayer has at least one qualifying child, the taxpayer should sign and date the Form 15110 and fill out Form 1040 Schedule 8812, Additional Child Tax Credit.
The Form 15110 and the Schedule 882 should be mailed to the IRS in the provided envelope.
If the envelope that’s provided is lost or otherwise cannot be used, the address for the correct IRS service center is printed in the top left corner of the notice.
Once mailed, the documents go to the IRS for review. Taxpayers who successfully claim the credit should get their refunds in about eight to 10 weeks. Those who are denied will get a letter from the IRS telling them why they were turned down.
To find more information about the Additional Child Tax Credit, see Publication 972, the Child Tax Credit and Credit for Other Dependents; and the Instructions for Form 1040.
Understanding the CP09 Notice
The CP09 notice reminds taxpayers they may qualify for the Earned Income Tax Credit, also known as the EITC, but they failed to claim the credit the last time they filed a return.
The EITC is a credit for taxpayers who work and have earned income. The credit could give some taxpayers a refund, even if they don’t owe any tax.
After reading this notice carefully, recipient taxpayers should fill out the Earned Income Tax Credit worksheet on Form 15111 that accompanies the notice.
If the worksheet shows the taxpayer is qualified for the credit, Form 15111 should be signed and dated, then mailed in the envelope that came with the notice. Like the CP08 notice, the CP09 notice must be sent to the proper IRS processing center.
If the provided envelope isn’t available, taxpayers should mail their completed documents to the IRS address in the top left of their notice.
Taxpayers who are not qualified for the credit should not mail Form 15111 to the IRS; no other action is needed in that case.
Taxpayers who are eligible after review for the credit should get their refund checks in about six to eight weeks, if they don’t owe any back taxes or other debts that the IRS is required to collect.
Taxpayers who are rejected by the IRS review are sent letters of explanation.
For more information on the Earned Income Credit, see Publication 596, Earned Income Credit, or visit the EITC webpage on IRS.gov.
Sources: Understanding Your CP08 Notice; Understanding Your CP09 Notice
Trussell Tax