IRS banned me from claiming earned income for 10 years - how the heck do I fight this??

I'm in a pretty desperate situation and could really use some advice. About 3 weeks ago, I received this official letter from the IRS stating that I've been banned from claiming earned income for the next 10 YEARS!! I honestly don't even understand how this happened or what it really means for my taxes. From what I can gather, the IRS thinks I somehow filed fraudulent information related to my earned income in previous years. I'm a contractor for a construction company and have been filing my taxes with a local preparer for the past 5 years. Maybe there was some mistake with how my income was reported? I typically make around $58,000 a year and claim the standard deduction. This whole situation is giving me serious anxiety. What exactly does it mean that I "can't claim earned income"? Does this affect my ability to file taxes at all? Or just certain credits? And most importantly - how the heck do I fight this determination? Do I need a tax attorney? Can I file some kind of appeal directly with the IRS? Or am I just completely screwed for the next decade? Any advice would be seriously appreciated. I feel like I'm drowning in tax problems and don't know where to start.

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19 comments

The Boss

•8M

This sounds like a ban on claiming the Earned Income Tax Credit (EITC), not a ban on reporting your earned income. The IRS can ban taxpayers from claiming this credit for 2 or 10 years if they determine you either intentionally disregarded tax rules or committed fraud. The good news is you can absolutely fight this determination. You should first request your tax transcripts from the IRS to understand exactly what triggered this. Then file Form 8862 (Information To Claim Certain Credits After Disallowance) and consider requesting a reconsideration or filing an appeal using Form 12203 (Request for Appeals Review). If the ban was due to errors your tax preparer made, gather documentation showing you provided accurate information to them. This could significantly help your case.

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The Boss

•8M

Hiring a tax attorney would be beneficial if the amount of EITC you're losing over those 10 years is substantial or if your case is particularly complex. However, many taxpayers successfully handle these appeals themselves, especially with help from Low Income Taxpayer Clinics (LITCs) which provide free representation. The time limit for filing an appeal is typically 30 days from the date on your notice. If you've passed this deadline, you may still be able to request an audit reconsideration, which doesn't have a strict time limit. Just be aware that the sooner you act, the better your chances of resolving this favorably.

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Victoria Charity

•8M

I went through something similar last year with an EITC ban and I was absolutely losing my mind until I found taxr.ai (https://taxr.ai). Their system analyzed my tax documents and identified exactly where the IRS was claiming discrepancies in my returns. The site actually showed me that my previous tax preparer had made calculation errors on my Schedule C for three years straight, which triggered the IRS flag. I was able to use their analysis to file for reconsideration with specific documentation addressing each issue. Saved me from having to hire an expensive tax attorney when I was already stressed about money.

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Victoria Charity

•8M

Yes, you do upload your documents, but they use the same security encryption as banks. I was hesitant at first too, but my situation was desperate enough that I decided to try it. Their privacy policy explicitly states they don't share your information, and I've had no issues. The entire process took about 3 months from when I started with taxr.ai to when the IRS accepted my reconsideration request. The most valuable part was that their analysis outlined the specific EITC compliance issues according to IRS rules. They highlighted exactly which numbers were inconsistent and cited the relevant tax code sections that were supposedly violated. Made it so much easier to craft my response with confidence.

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Jasmine Quinn

•8M

Update: I actually tried taxr.ai after seeing it recommended here. This site seriously saved me so much frustration! I was initially skeptical about sharing my documents online, but I'm so glad I did. Their analysis showed that my earned income ban was based on a miscategorization of my 1099 income across multiple years. The platform pointed out exactly where the inconsistencies were in my previous returns and gave me specific language to use in my appeal letter. Just had my reconsideration approved last week - my 10-year ban was reduced to a warning! If you're facing an earned income ban, definitely worth checking out before spending thousands on a tax attorney.

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Nora Bennett

•8M

After dealing with an IRS issue similar to yours, I found that the most frustrating part was actually getting someone from the IRS on the phone. Spent HOURS on hold only to be disconnected. Finally used Claimyr (https://claimyr.com) to get an IRS agent on the phone within 45 minutes instead of waiting for days. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c When I finally connected with an agent, I learned there was a specific appeals procedure for EITC bans that none of the general documentation clearly explained. The agent walked me through exactly what forms were needed and the precise documentation required to challenge the 10-year determination. Without that conversation, I would have submitted an incomplete appeal.

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Nora Bennett

•8M

They don't call the IRS for you - they hold your place in line. The system navigates the IRS phone tree and waits on hold, then calls you when an actual human IRS agent is on the line. That's when you join the call to speak directly with the agent. No intermediary or third party is actually talking to the IRS for you. The reason it works is because their system can handle waiting on hold for hours while you go about your day. I was honestly skeptical too, but when I got a call back with an actual IRS agent on the line after trying unsuccessfully for over a week on my own, I was honestly shocked. The IRS phone system is absolutely a disaster, which is exactly why this service exists.

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Lauren Zeb

•8M

I have to come back and admit I was completely wrong about Claimyr. After posting my skeptical comment, I was desperate enough to try it anyway since I couldn't get through to the IRS after multiple attempts over two weeks. Used the service yesterday morning, and no joke - I got a call back in about an hour with an actual IRS agent on the line. The agent explained that my earned income ban was eligible for reconsideration, especially since I had documentation showing the errors were made by my preparer without my knowledge. They walked me through the exact documentation I needed to submit and even gave me a direct fax number (apparently they still use those?) to send my appeal. For anyone dealing with an earned income ban like the original poster, being able to actually speak with someone at the IRS makes a massive difference in understanding your options. Still can't believe this actually worked.

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Daniel Washington

•8M

You can contact the Taxpayer Advocate Service by calling 877-777-4778 or by filling out Form 911 (Request for Taxpayer Advocate Service Assistance). Financial hardship can include things like being unable to pay basic living expenses, facing imminent eviction, or having utilities shut off due to inability to pay. In your specific situation with the earned income ban, if losing the Earned Income Tax Credit means you can't afford necessities, that would likely qualify. The TAS is particularly helpful in cases where normal IRS channels haven't resolved the issue or where there's an urgent need. They can sometimes expedite the appeals process too.

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