If you’ve received a CP27 Notice from the IRS, it could be a pleasant surprise—it means you might have money waiting for you in the form of an unclaimed tax refund. But this opportunity doesn’t last forever. To receive your refund, you’ll need to take action before the deadline passes.
This guide breaks down everything you need to know about the CP27 Notice, from what it means to how to claim your unclaimed refund before it’s too late.
Why Do Refunds Go Unclaimed?
Each year, millions of dollars in tax refunds go unclaimed. While it may seem surprising, there are a few common reasons why this happens:
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You didn’t file a tax return for a year when you were owed a refund.
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You earned too little income to be required to file—but still qualified for a refundable credit.
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You moved and didn’t update your mailing address with the IRS.
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You lacked the necessary documents at the time and forgot to follow up later.
The CP27 Notice exists to alert eligible taxpayers that they may be entitled to a refund they didn’t claim.
What Is a CP27 Notice?
A CP27 Notice is a letter from the IRS sent to taxpayers who may be eligible for the Earned Income Credit (EIC) but didn’t claim it on their original return.
Here’s what the notice typically means:
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The IRS believes you qualify for the Earned Income Credit based on information in their records.
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You did not claim the EIC on your tax return.
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You may be owed a refund if you qualify and take action.
This is not an audit or warning—it’s actually a second chance to get money that belongs to you.
How the IRS Identifies and Notifies Taxpayers
The IRS uses its internal data systems to match income and filing records. If you filed a return but didn’t claim the EIC (and appear eligible based on your income), you might be flagged for follow-up.
Here’s how the IRS handles it:
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The system identifies unclaimed credits from past tax returns.
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A CP27 Notice is generated and mailed to qualifying individuals.
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The notice includes instructions for determining eligibility and filing to claim your refund.
You won’t receive this notice if the IRS doesn’t have a valid mailing address—so make sure to keep your contact info updated.
How To Claim an Unclaimed Refund
The CP27 Notice will guide you on how to claim your refund, but here’s a more detailed step-by-step process:
1. Review the notice carefully
It will explain that you might qualify for the Earned Income Credit and how to proceed.
2. Confirm your eligibility
Use IRS resources or consult a tax professional to make sure you meet the EIC qualifications, which depend on:
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Income
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Filing status
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Number of qualifying children (if any)
3. File an amended return (Form 1040-X)
If you determine you’re eligible, you’ll need to file an amended return for the year in question and include the Earned Income Credit. Attach all required documentation.
4. Mail your amended return
Follow the instructions in the CP27 Notice or visit the IRS website to determine the correct mailing address. Keep copies of all forms and documents for your records.
Deadline for Taking Action
Refunds tied to unclaimed credits like the EIC are time-sensitive. By law, you have three years from the original filing deadline to claim a refund.
For example:
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If you didn’t file your 2021 return, the deadline to claim a refund is April 15, 2025.
Miss the deadline, and the money becomes the property of the U.S. Treasury—you won’t be able to get it back.
That’s why acting quickly after receiving a CP27 Notice is essential.
What Happens to Unclaimed Refunds?
When refunds aren’t claimed within the deadline:
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The IRS cannot legally issue them.
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The funds are absorbed into the federal budget.
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The taxpayer loses the money permanently.
It’s a silent loss that impacts millions each year, especially those who may not realize they were entitled to a refund in the first place.
How To Prevent Unclaimed Refunds in the Future
Missing out on a refund is entirely preventable. Here’s how to make sure it doesn’t happen again:
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File a tax return every year, even if you think you don’t owe anything.
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Check for all available credits and deductions before submitting.
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Use IRS Free File tools or hire a tax pro to ensure accuracy.
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Keep your contact info up-to-date with the IRS and USPS.
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Respond promptly to IRS notices, even if they seem unimportant.
If your income is low or your situation seems simple, you might be tempted to skip filing—but that could mean missing out on money the IRS owes you.
How an Unclaimed Refund Affects Your Tax Record
While an unclaimed refund doesn’t hurt your credit or result in penalties, it does have other impacts:
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Loss of refundable credits that could have supported your household.
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Lower reported income if you miss out on tax filings that prove earnings.
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Delays in future refund processing may occur if your IRS account shows inconsistencies.
It’s important to maintain a clean and consistent tax record. Filing even simple returns each year can protect your financial future.
Common Issues That Delay or Prevent Refunds
Whether you’re claiming a refund for the first time or responding to a CP27 Notice, certain errors can delay the process:
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Incomplete or inaccurate tax forms
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Missing documentation for EIC or dependents
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Incorrect mailing address
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Filing the wrong year’s return
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Not signing your return or Form 1040-X
These issues may trigger another notice—or worse, result in the IRS denying your refund altogether. Always double-check before submitting anything.
When To Get Legal or Tax Help
If you’re unsure about your eligibility for the EIC, how to file an amended return, or whether your refund is still available, it’s a good idea to consult a tax professional or legal advisor.
At Silver Tax Group, we help taxpayers:
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Determine EIC eligibility
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File amended returns properly
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Respond to IRS notices like the CP27
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Protect and recover unclaimed refunds
We have decades of experience dealing with the IRS and can help you make the most of your tax situation before deadlines expire.
Schedule a Free Consultation
The CP27 Notice may come as a surprise, but it’s one of the rare times the IRS reaches out to offer you money. If you qualify for the Earned Income Credit but didn’t claim it, this notice gives you a second chance.
Don’t ignore it. Review the notice, confirm your eligibility, and take action before the deadline passes. And if you need help along the way, Silver Tax Group is ready to assist.
Your money shouldn’t be left on the table—and with the right support, you can claim what’s yours. Contact us for a free consultation.
