IRS letter help
Got IRS Letter 566? What an Audit Letter Means and What to Do
Letter 566 is the IRS’s initial contact letter for an audit. Most are handled entirely by mail and focus on a few specific items, and the outcome depends largely on the documents you send back.
Reviewed by LaToya Clark-Thompson, FounderLast updated
What this letter is
Letter 566 is the IRS notifying you that your return has been selected for an examination, which is the IRS word for an audit. It comes in several versions with a letter after the number. Letter 566S, for example, focuses on specific items, and Letter 566E is typically used for wages, withholding and refundable credits. Whichever version you have, it lists the items under review and the documents the examiner wants.
Selection does not automatically mean something is wrong. The IRS checks some returns to confirm that income, expenses and credits were reported accurately.
Why you got it
Returns are selected in different ways: computer screening that flags items that look unusual for a return like yours, comparison with forms reported by third parties, and random selection. Common items in mail audits include Schedule C expenses, charitable gifts, dependents and the credits tied to them, education credits, and business use of a vehicle. Our post on IRS audit red flags covers the patterns.
What to do now
- Find the due date printed on the letter and put it somewhere you will see it
- List every item the letter asks about, and only those items
- Gather the records for each one: receipts, bank and card statements, mileage logs, acknowledgment letters from charities, school records for dependents
- Send copies, never originals, using one of the methods the letter lists, and complete any questionnaire it encloses
- If you fax or upload, put your name and taxpayer identification number on every page
- If you need more time, call the number on the letter before the due date, not after
- If you want to keep your right to an Appeals conference later, follow the letter’s instructions on requesting one before the response date
What happens if you ignore it
If you do not respond by the due date, the items in question are disallowed, and the IRS sends an examination report showing the proposed changes, usually with Letter 525. That turns a request for documents into a proposed tax bill. If that is still unanswered, a notice of deficiency such as the CP3219A follows.
How we help
Most of an audit response is records. We go through the items the IRS listed, organize the support for each one in the order the examiner asked for it, and, where receipts are missing, rebuild the figures from bank and card statements. If the original return got something wrong, we tell you and prepare the correction. See missing receipts and records.
Speaking with the examiner, attending a meeting, or requesting Appeals on your behalf is representation. That is handled by the independent licensed CPA we work with, with our office preparing and coordinating the documents. Our IRS audit defense page explains how that works.
What to send us
- Every page of Letter 566 and any enclosed questionnaire or form, through the secure client portal
- The return that is being audited
- Whatever records you already have for each item on the list, even if incomplete
- Bank and card statements for the year, if expenses are being questioned
Frequently asked questions
How do I know which items the IRS is auditing on my return?
The letter lists them. A mail audit is usually limited to the items named, often a few lines from Schedule C, Schedule A or the credits section. Answer those items thoroughly and do not send a full set of every record for the year, which makes the examiner’s job harder and can raise new questions.
Is an IRS audit by mail serious?
It should be taken seriously, but most mail audits are narrow and resolve on documents. The examiner may accept the return as filed, ask for more information, or propose changes. Responding by the due date with organized, legible support is the single most important thing you can do.
Can I ask for more time to answer an audit letter?
Often, yes. Call the number on the letter before the due date and ask. Explain what you are gathering and why it is taking time. Ask what new date applies and write it down along with the name of the person you spoke with. A late reply sent without asking risks the items being disallowed.
Should I call the examiner myself?
You can, and for a simple question about what the letter wants, that is fine. Keep it brief and stick to the items listed. If the audit involves business income, large amounts or anything you are unsure about, it is usually better to have the conversation handled for you, which in our office is the independent licensed CPA we work with.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
Related pages
Letter 525 (proposed audit changes)
The mail audit ended with proposed changes. Agree, disagree with support, or ask for Appeals by the date on it.
Learn moreCP75 notice (refund held for audit)
An audit of your Earned Income Credit, with part of your refund held until you send documents.
Learn moreCP3219A notice of deficiency
The 90-day letter. A proposed change to your tax and a Tax Court deadline that cannot be extended.
Learn moreHow to respond to an IRS letter
Check it, decide whether you agree, gather support, reply by the date, and keep proof.
Learn morePart of IRS & SC Letter Help. Not sure which service fits? Answer a few questions.
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