Question

My tax refund is frozen?

I called the IRS today, and they told me they are sending me a form CP75, meaning I have to prove my children are my dependents. I'm confused about this, since they been on my tax returns since they were born, and even since I divorced. Isn't this weird? Meanwhile, my tax refund is frozen until I prove they are my children with various documents. I haven't gotten their review letter yet, so I'm going by my phone conversation with them. Am I wrong to think they are trying to delay refunds like the insurance companies delay payments, just to hold on to the money on their end as long as they can?

Answers

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CP75 is not used when 2 taxpayers claim the same dependent. CP75 is an EIC review. Until recently it was normally only used when an EIC claim looked suspicious, such as with children being claimed by different taxpayers from one year to the next or returns with undocumented self-employment income and suspiciously low business expenses that tended to increase the EIC entitlement.

It appears that this year the IRS is getting more proactive on EIC claims and is pulling EIC claims for random audit. The reason is that there have been a lot of fraudulent EIC claims in recent years as the amounts have risen steadily. The IRS has to be a guardian of public monies and this is one of the tools that they use to stop fraud.

#1

I doubt they are trying to hold out. You sure no one else claimed your kids? That could cause this sort of problem.

#2

No....they have an issue with your tax return..........do what they tell you to do ...........your ex may have claimed them......

#3

I don't think they would hold it for no reason. Sounds like someone else tried to claim your kids! Hope it all works out for you! Good luck!

#4

You are wrong. You entered something incorrectly or someone else is trying to claim the children

#5

I am thinking your ex has claimed them as dependents as well...His return beat yours to the irs...good luck, dealing with the irs isn't fun.

#6

The IRS may have a conflict due to someone else claiming the children, or someone may have used one of your children's SSN at some point. Fill out the form and I'm sure everything will sort itself out in a few years.

#7

It means that someone else claimed your children. Possibly the father. It is common for parents to take turns claiming children. Maybe custody gets changed. Numerous reasons why a kid would be counted different for one year. Only one person can claim a dependent so now you just need to supply the records.

#8