Q1. What is the EITC QC residency certification test?
A1. The EITC QC residency certification test is a new approach we are testing to improve tax administration of the EITC program and reduce the high rate of erroneous EITC claims. The most recent study of these erroneous claims found that between one-quarter and one third of EITC claims in 1999 were erroneous.
The test comprises 25,000 taxpayers who claimed EITC on their 2002 individual federal income tax returns and for whom we cannot verify they lived with their qualifying child or children for more than one-half of the year. We are asking these individuals to provide proof of the qualifying child’s residency when filing their 2003 returns.
Compared to the overall EITC population (approximately 21 million taxpayers claimed the credit in 2002) the test is extremely small –about one-tenth of one percent of taxpayers have been selected to participate.
Our goal is to give all qualifying taxpayers the EITC they deserve, while ensuring only qualifying individuals receive the credit.
Q2. Why is IRS conducting the EITC QC residency certification test?
A2. EITC, which helps lift millions of taxpayers, especially single mothers, out of poverty each year, has a very high erroneous payment rate. A task force commissioned by the Secretary of the Treasury recommended that the IRS consider imposing a certification requirement on certain taxpayers as a means of reducing erroneous payments. The certification process we are testing is designed to be less burdensome to taxpayers and less costly to the government than more extensive EITC audits.
Prior to implementation, we sought and received input from tax professionals, low-income advocacy groups, and the general public that helped us improve the certification test and strengthen the integrity of the EITC program.
Q3. How do I know if I'm in the EITC QC residency certification test group?
A3. If you are in the EITC QC residency certification test, we notified you by mail in December 2003. Our correspondence included Notice 84A; Form 8836, Qualifying Child Residency Statement; either Schedule A or B, Third Party Affidavit; Publication 3211M, Earned Income Credit Questions and Answers; and Publication 4134, Free/Nominal Cost Assistance Availability for Low Income Taxpayers.
Q4. What do I do if I moved and don't know whether I'm in the EITC QC residency certification test?
A4. If you moved since filing your 2002 federal income tax return and have not contacted us with your new address, you can call 1-800-829-1040 to determine whether you are in the EITC QC residency certification test group.
Q5. What do I do if I lost my notice and Form 8836?
A5. If you need replacements, call a special toll-free number dedicated to the EITC certification test — 1-800-294-2723 — and we will send you the appropriate forms. Schedules A and B are not available on our website and are only available by calling this special number.
Q6. What do I do if I'm in the certification test?
A6. If you were selected for the certification test, you should complete and return Form 8836, plus any required documentation to prove your qualifying child lived with you for more than one-half of the tax year.
If you are filing your tax return electronically, please mail your documentation to:
Internal Revenue Service
STOP 4300, Annex R2
Kansas City, MO 64999-0065
Or, you can fax Form 8836 and your documentation to 1-913-266-9640 (not toll free).
If you are filing a paper tax return, attach Form 8836 and proof of your qualifying child’s residency to your return. Do not use the envelope in your tax package. Mail your return and documentation to the appropriate address shown below:
| If you are filing | And are not enclosing a payment | And are enclosing a payment |
| Form 1040 |
Internal Revenue Service
Kansas City, MO
64999-0002 | Internal Revenue Service
Kansas City, MO
6499-0102 |
| Form 1040A |
Internal Revenue Service
Kansas City, MO
64999-0015 | Internal Revenue Service
Kansas City, MO
6499-0115 |
Q7. What kind of documentation do I need to prove my qualifying child lived with me for more than one-half the tax year?
A7. Acceptable proof of your qualifying child’s residency includes copies of records, such as school, child care, social service, or medical records, signed letters on official letterhead, or Third Party Affidavit (Schedule A or B). You may need to obtain more than one document to prove the child lived with you more than one-half of the tax year.
Your documentation must clearly show:
Photocopies are acceptable. Keep original documents for your records.
Q8. Can I e-file my return if I'm in the EITC certification pilot?
A8. Yes, you can e-file your return, but you must mail or fax your Form 8836 and supporting documentation. Mail the information to:
Internal Revenue Service
STOP 4300, Annex R2
Kansas City, MO 64999-0065
Or, fax Form 8836 and your documentation to 1-913-266-9640 (not a toll free number).
Q9. What do I do if my child didn't live with me for more than one-half of the tax year during 2003?
A9. If your qualifying child did not physically reside with you for more than one-half of tax year 2003, you do not qualify for, and should not claim the EITC with a qualifying child. You may still qualify for a reduced EITC if your income meets certain requirements.
Q10. What do I do if I received Form 8836, but am not claiming the EITC this year?
A10. If you are not claiming EITC on your 2003 individual federal income tax return, disregard the notice and instructions. You do not need to attach Form 8836.
Q11. What will happen after I file Form 8836 and provide proof of my child’s residency?
A11. We will review your documentation and, if we need additional information, we will notify you. We will advise you of our determination, usually within 4 to 6 weeks, and if you are eligible for EITC, you should receive any refund attributable to your EITC, less offsets to back taxes, delinquent child support, or other federal debts you owe, soon afterward.
Q12. What will happen if I don't complete and mail Form 8836?
A12. If you were selected for the QC certification test and file a return claiming EITC without submitting Form 8836 and the requested documentation, we will send you Notice 75B. We will then send Letter 3726 with a Form 8836 and the applicable Third Party Affidavit, again asking you to verify that your qualifying child lived with you for more than one-half of 2003 or to agree to a proposed report of Examination changes. If you still do not respond we will send a Letter 3826 giving you another opportunity to send in information or agree to changes. If you still do not respond we will send you a Statutory Notice of Deficiency and will deny your EITC claim.
You will not receive the EITC portion of your refund until you provide the requested information and we determine your eligibility for the credit.
Q13. Will my refund be affected if I'm in the QC residency certification test?
A13. You will receive the EITC portion of your refund by check after we review your documentation and determine you are eligible for the credit. If you qualify for the EITC, you should receive your check approximately 60 days after you provide proof of your qualifying child(ren)’s residency. The sooner you provide the requested information, the sooner we can make the determination and send you the EITC you deserve.
The certification test will not affect any refund you are expecting due to federal income tax withholding or other refundable tax credits. You will receive this part of your refund separately within 2 – 8 weeks of filing, depending on whether you file electronically or on a paper return and whether you request a direct deposit to a financial institution account or a check mailed to your address.
Electronic filing with direct deposit is the fastest, safest, easiest way to receive your refund.
Q14. What can I do if I have an emergency and need my EITC quickly?
A14. If you have a hardship, call the Taxpayer Advocate Service toll-free telephone number at 1-877-777-4778.
Q15. What happens if IRS determines I don't qualify for the EITC?
A15. If we disallow your EITC claim, we will send you a letter explaining why the information you provided did not verify your qualifying child(ren)’s residence. If you have other information you want us to consider, mail the information to the address in our letter. If you have questions, call the number on the letter.
Q16. What if I disagree with IRS' determination?
A16. If you disagree with our determination, you may appeal our decision through the IRS Appeals Division or petition the Tax Court. For more information about your appeal rights, see Publication 1, Your Rights as a Taxpayer.
You may qualify for assistance through a Low Income Tax Clinic. See Publication 4134, Free/Nominal Cost Assistance Availability for Low Income Taxpayers, for more information.
Q17. Will my state tax return be affected if I don't qualify for the EITC?
A 17. If you claimed a state tax credit comparable to the EITC and we determine you do not qualify for the EITC, there may be a corresponding adjustment on your state tax return. Contact your state tax office for information.
We advise state tax departments of adjustments on federal income tax returns under a federal/state exchange agreement.
Q18. If I don't qualify for the EITC, what is the effect on the Advance Earned Income Tax Credit (AETIC) I received last year?
A18. If you are not eligible for the EITC, you may need to repay part or all of the AEITC payments you received during 2003, depending on your tax liability, total withholding, and other refundable tax credits. If you owe additional tax, we will notify you after determining your EITC eligibility.
Q19. How can I get help if I have questions about Form 8836?
A19. You can get help by calling a special toll-free telephone number dedicated to the EITC QC residency certification test – 1-800-294-2723. Assistance is available Monday through Friday, from 8.a.m. to 11 p.m. Eastern Standard Time. If you normally seek professional help preparing your return, your tax professional also can assist you or you may qualify for help through a Low Income Tax Clinic. See Publication 4134, Free/Nominal Cost Assistance Availability for Low Income Taxpayers, for more information.
Q20. Is Form 8836 available in Spanish?
A20. Form 8836 and Schedules A and B are available in Spanish. You can get copies by calling the special EITC certification hotline at 1-800-294-2723. You also may ask to speak with a Spanish-speaking assistor.
Q21. Will I need to complete Form 8836 again next year?
A21. We will notify you if you need to certify your qualifying child(ren)’s residency in future years. At this point the QC residency certification is a test, which we will not implement further without full analysis, careful evaluation, and additional stakeholder input.
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