My 2020 return was audited

[cduncan0310]

My 2021 return was just rejected stating that I have to complete and file form 8862 with my return to claim the EIC and ACTC after disallowance. I never rec'd a letter from the IRS stating that I would have to file any additional forms after the audit. How could the credit have been disallowed when I successfully proved that my tax return was legitimate and that I could claim HOH and my children and the IRS sent me my entire refund amount originally submitted?

[JamesG1]

If you have successfully demonstrated to the IRS your eligibility for EITC or CTC claimed on a previous year's tax return, you should have received an IRS CP74 Notice.

If the facts are as you outline, the IRS may not have issued a CP74 Notice and may still have a 'hold' on your tax account.  Perhaps a review of your tax transcript would shed some light on the matter.

This may be a case where you are correct but you still have to include an IRS Form 8862 with your tax return to allow you to file for the 2021 tax season.

This IRS FAQ states:

File Form 8862

If we denied or reduced your EITC for a tax year after 1996 (CTC, ACTC, ODC or AOTC for a tax year after 2015) for any reason other than a math or clerical error, you must include Form 8862, Information to Claim Certain Credits After Disallowance with your next tax return.

You don’t have to include the form with your next tax return, if:

• You already filed Form 8862 and we then allowed you to claim the credits and we didn’t reduce or deny your credit again for any reason other than a math or clerical error, or
• You are claiming the EITC without a qualifying child and the only reason we reduced or denied your EITC was because of a qualifying child or
• You received a CP74 notice from us saying we recertified you.