Understanding IRS Notice CP79: Earned Income Credit Disallowed — 2-Year Ban Imposed and How to Respond
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🔥 The Detangler — Plain English Translation
"Not only did they kill your EIC — they banned you from claiming it for 2 years. That's a serious penalty with real financial consequences."
CP79 is a dual penalty: your current EIC is gone AND you're locked out for 2 years. If your EIC was $5,000/year, that's a $10,000+ impact. Fight this within 30 days if you have documentation proving eligibility.
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Step 1 of 3 — Who are you?
Official IRS Summary
Threat Level & Action
Severity
Extreme
- ✦ Do NOT ignore this notice
- ✦ Respond within the stated deadline
- ✦ Contact a licensed IRS Collection EA
- ✦ Document all communications
- ✦ Review Penalty & Interest exposure
Frequently Asked Questions — CP79
What is IRS Notice CP79?
CP79 informs you that the IRS has disallowed your Earned Income Credit claim and imposed a 2-year ban from claiming EIC due to what they determined was reckless disregard of the rules.
How long does the EIC ban last?
A 2-year ban for reckless disregard, or a 10-year ban if the IRS determined the claim was fraudulent. The ban applies to federal returns only.
Can I fight the CP79 EIC ban?
Yes. File a formal protest within 30 days of the notice. You must prove your EIC eligibility with documentation. An EA who specializes in EIC audits can build your case.
What do I do when the ban ends?
File Form 8862 (Intent to Claim EIC After Disallowance) with your next eligible return. The IRS will review before granting the credit again.