IRS Notice CP02: What It Means & What to Do
CP02 means the IRS thinks you may not be entitled to some or all of the Earned Income Tax Credit you claimed. Learn when to amend and what happens if you do not.
Written and maintained by Joseph Lancaster, Settlement Officer since January 2013
Published · Checked against IRS sources on
Quick answer
What is an IRS CP02 notice and what should I do?
CP02 means the IRS thinks you may not qualify for some or all of the EITC you claimed. Check your eligibility; if the claim was wrong, file Form 1040-X. If it was right, you do not need to do anything.
Who this applies to: Taxpayers who claimed the Earned Income Tax Credit.
What can change this answer
- No action if the claim was correct
- Amend with Form 1040-X if it was wrong
- Possible audit, 2- or 10-year ban or penalty if not corrected
The IRS says you may not be entitled to some or all of the Earned Income Tax Credit (EITC) you claimed, and you may need to amend your return.
Immediate Steps to Take
- 1Review the IRS rules for claiming the EITC
- 2Use the IRS EITC Assistant to check your eligibility and whether your children qualify
- 3If you claimed the credit correctly, you do not need to do anything
- 4If you claimed it in error or claimed too much, file Form 1040-X to remove or recalculate the credit
What CP02 means
CP02 tells you the IRS believes you may not qualify for some or all of the Earned Income Tax Credit on your return. It is a chance to correct the claim yourself by filing Form 1040-X, Amended U.S. Individual Income Tax Return. If your claim was correct, no action is needed.
If you did not qualify and do not amend
The IRS says it may audit your claim and deny all or part of the credit. It may also ban you from claiming the credit for 2 or 10 years, or charge a penalty. If that creates a balance you cannot pay, see installment agreements.
Claiming the EITC again later
If the IRS denied or reduced your EITC in the past and you now qualify, you may need to file Form 8862, Information to Claim Certain Credits After Disallowance, with your next return.
Frequently Asked Questions
Do I have to respond to CP02?
Only if your EITC claim was wrong. If you claimed the credit correctly, the IRS says you do not need to do anything. If not, file Form 1040-X to remove or recalculate the credit.
Where can I get free help amending my return?
The IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic return preparation for certain people. You may also qualify for help from the Taxpayer Advocate Service or a Low Income Taxpayer Clinic.
Authority Citations
This content is based on the following official IRS sources. All links open in a new tab.
Information current as of 2026. Tax laws change frequently. Verify with official IRS sources before taking action.
Important information