IRS Notice CP74: What It Is and Why It’s Good News
Most of the IRS notices we write about on this blog deliver bad news.
IRS Notice CP74 is a rare exception: it’s the IRS telling you that you succeeded.
Specifically, the CP74 Notice means you have successfully recertified for tax credits — such as the Earned Income Tax Credit or the Child Tax Credit — that the IRS had previously disallowed.
You filed Form 8862 with your return, the IRS accepted it, and your credits are being allowed.
If those credits produce a refund, it’s on the way.
In this article, I’ll walk you through the current IRS Notice CP74 part by part — what it means, why you received it, when your refund should arrive, and the one thing buried in the notice that could trip you up in a future tax year if you miss it.
Key Takeaways
- IRS Notice CP74 is good news: it confirms you successfully recertified for credits the IRS previously disallowed, based on the Form 8862 you filed with your return.
- If your allowed credits produce a refund, the IRS says you’ll receive it within 6–8 weeks — as long as you don’t owe other taxes or debts the IRS is required to collect.
- No action is required right now. Just keep a copy of the notice for your records.
- Read the fine print: the notice may tell you that you must file Form 8862 again in the future to claim certain other credits — on our sample notice, the Earned Income Tax Credit.
- If your refund doesn’t arrive in 8 weeks, it may have been offset against other debts or held for review — and it’s worth investigating.
Table of Contents
IRS Notice CP74 At a Glance
| Question | Answer |
|---|---|
| What is it? | Confirmation that you successfully recertified for previously disallowed tax credits |
| Is it good news? | Yes — your credits are being allowed, and any resulting refund is on the way |
| Why did I get it? | You filed Form 8862 (Information to Claim Certain Credits After Disallowance) with your return, and the IRS accepted it |
| Do I need to respond? | No — just keep a copy for your records |
| When will my refund come? | Within 6–8 weeks, unless you owe other taxes or debts the IRS must collect |
IRS Notice CP74 Explained, Part by Part
Here is a full explanation of the Notice CP74, part by part, based on the IRS’s current CP74 format.
Part 1: Notice Header
At the top of the notice, the IRS identifies it by name — “IRS Notice CP74” appears in the upper-right corner — along with the IRS service center that sent it and your mailing address.
Near the bottom of the page, the IRS lists the notice name and the tax year it applies to (tax year 2024 on our sample notice).
Part 2: “You Successfully Recertified for the Credits You Claimed”
The headline says it all.
Based on the Form 8862 — Information to Claim Certain Credits After Disallowance — that you filed with your tax return, the IRS is allowing the credits you claimed.
On our sample notice, that’s the Child Tax Credit/Credit for Other Dependents or Additional Child Tax Credit (CTC and ACTC); on your notice, it could also include the Earned Income Tax Credit or the American Opportunity Tax Credit.
The IRS then delivers the line everyone wants to read: if you’re expecting a refund, you’ll receive it within 6–8 weeks — if you don’t owe other taxes or debts the IRS is required to collect.
More on that caveat below.
Part 3: What You Should Know
This section is refreshingly short: you don’t need to do anything at this time, and you should keep a copy of the notice for your records.
That second part matters more than it looks — if a future return gets questioned, having proof that you recertified is genuinely useful.
Part 4: What You Need To Do in the Future
Here’s the part of the CP74 Notice that people skim right past — and regret later.
The IRS may tell you that you must complete a Form 8862 again in the future to claim certain credits.
On our sample notice, the taxpayer recertified for the Child Tax Credit, but must still file Form 8862 the next time they claim the Earned Income Tax Credit.
Miss this, and your EIC claim on a future return can be denied automatically — even though everything else on the return is correct.
If a tax professional prepares your return, make sure they know about this requirement.
Part 5: Additional Information
Finally, the IRS provides a phone number to call with questions about the notice — 800-829-8374 on our sample.
Part 6: Notice Footer
The footer restates the notice number, the tax year, and the page count — useful reference points if you call the IRS about the notice.
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Call 866-8000-TAXWhen Does the IRS Send Notice CP74?
The IRS sends the CP74 Notice after it processes a tax return that includes Form 8862, Information to Claim Certain Credits After Disallowance — and accepts it.
Some background: if the IRS denies certain refundable credits on a past return through an audit or examination — the Earned Income Tax Credit, Child Tax Credit, Additional Child Tax Credit, Credit for Other Dependents, or American Opportunity Tax Credit — you generally can’t just claim them again the following year.
You must “recertify” by attaching Form 8862 to your next return claiming the credit.
The CP74 Notice is the IRS’s confirmation that your recertification succeeded.
Our sample notice, dated March 17, 2025, covers tax year 2024 — a typical timeline, arriving a few weeks after a recertifying return was filed during filing season.
What Should You Do After Receiving Notice CP74?
There’s not much you have to do — but here’s what I’d recommend.
Step 1: File the Notice Away — Permanently
The IRS asks you to keep a copy for your records, and I’d go further: keep it with your permanent tax records.
It’s your proof that you recertified for the credits, which can save you real headaches if a future return is questioned.
Step 2: Watch for Your Refund — and Know Why It Might Not Arrive
If your allowed credits produce a refund, the IRS says to expect it within 6–8 weeks.
But note the caveat: the refund comes only “if you don’t owe other taxes or debts we’re required to collect.”
Federal tax debts, state income tax debts, past-due child support, and defaulted federal student loans can all offset your refund partially or entirely.
If eight weeks pass with no refund, check your status at Where’s My Refund or your IRS Online Account.
And if the IRS ends up holding your refund for review, you may receive a follow-up notice — such as the CP05 Notice (return under review) or the CP63 Notice (refund held because of unfiled returns).
Step 3: Calendar the Future Form 8862 Requirement
If your notice says you must file Form 8862 in the future to claim a particular credit — like the Earned Income Tax Credit on our sample — write that down where you (or your tax preparer) will see it at filing time.
A missed Form 8862 is one of the most preventable ways to lose a credit you’re otherwise entitled to.
Step 4: Get Help If Your Credits Story Is Complicated
If your credits were disallowed in the past and you’re not sure where you stand — or your refund got offset against a tax debt you didn’t know about — that’s exactly the kind of thing we untangle for clients every day.
Call us at 866-8000-TAX for a free consultation.
IRS Notice CP74: Frequently Asked Questions
What is IRS Notice CP74?
IRS Notice CP74 confirms that you successfully recertified for tax credits the IRS had previously disallowed — such as the Earned Income Tax Credit or Child Tax Credit — based on the Form 8862 you filed with your tax return. The IRS is allowing the credits you claimed.
Is Notice CP74 good news?
Yes. It means your recertification was accepted and your claimed credits are being allowed. If those credits result in a refund, the IRS says you’ll receive it within 6–8 weeks, provided you don’t owe other taxes or debts the IRS is required to collect.
Do I need to respond to Notice CP74?
No. The IRS says you don’t need to do anything at this time — just keep a copy of the notice for your records. Do check whether the notice says you must file Form 8862 again in the future for other credits.
When will I get my refund after a CP74 Notice?
The IRS says within 6–8 weeks — unless your refund is offset against other taxes or debts the IRS is required to collect, such as federal or state tax debts, past-due child support, or defaulted federal student loans. You can track it with the IRS’s Where’s My Refund tool.
Why does my CP74 Notice say I still need to file Form 8862 in the future?
Recertification applies credit by credit. You may have recertified for one credit — such as the Child Tax Credit — while a different previously disallowed credit, like the Earned Income Tax Credit, still requires a Form 8862 the next time you claim it. If you skip it, that credit can be denied automatically.
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Author:
Logan Allec, CPA, Founder and Owner
Logan Allec has been serving taxpayers as a CPA for over 14 years. After leaving his role at a "Big 4" firm, he started Choice Tax Relief to help everyday Americans who have found themselves behind on their taxes. He also educates thousands of people daily about tax relief on his YouTube channel. In addition to his CPA license, Logan also has a Master's Degree in Taxation from the University of Southern California (USC). He lives with his wife and children in the Los Angeles area. Learn more about Logan here.
