Receiving an IRS Letter 566 means the IRS has initiated a correspondence audit of your tax return. This type of audit is conducted by mail and requests documentation to verify specific items on your return.

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🚨 What Letter 566 Means

  • Letter 566 is a correspondence audit letter.
  • It indicates that the IRS is reviewing your tax return and needs additional documentation.
  • The IRS will specify which records you must provide (e.g., receipts, bank statements, proof of deductions).
  • You must submit the requested records by the due date to avoid adjustments or penalties.

🎯 Purpose of Letter 566

The purpose of Letter 566 is to:

  • Verify the accuracy of your tax return.
  • Request supporting documentation for deductions, credits, or income reported.
  • Allow you to respond by mail rather than attending an in‑person audit.

⚖️ What the Taxpayer Should Do

  • Read the letter carefully: Identify which items are under review.
  • Gather documentation: Collect receipts, statements, or other records requested.
  • Submit records on time: Mail or fax the documents by the due date listed.
  • Keep copies: Retain copies of everything you send to the IRS.
  • Seek representation: Contact CPA Clinics or a tax professional for guidance.

⚠️ Common Complications

  • Missed Deadline: Failing to respond can result in disallowed deductions or added tax.
  • Incomplete Records: Missing documentation may lead to unfavorable adjustments.
  • Financial Burden: Adjustments can increase your tax liability significantly.
  • Language Barriers: ESL taxpayers may struggle to understand the notice and requirements.

🛡️ How CPA Clinics (LITC) Helps

The Low Income Taxpayer Clinic (LITC) at CPA Clinics provides free or low‑cost representation for qualifying taxpayers. If you receive Letter 566:

  • We review the IRS’s request and explain what documentation is needed.
  • We help you organize and submit records correctly.
  • We represent you if the IRS proposes adjustments you disagree with.
  • We assist ESL taxpayers in understanding their rights and responsibilities.
  • We provide guidance to reduce or eliminate penalties and negotiate manageable payment options.

📖 Commonly Asked Questions

Q1: Is Letter 566 an audit?

👉 Yes. It’s a correspondence audit conducted by mail.

Q2: What happens if I ignore Letter 566?

👉 The IRS may disallow deductions or credits, assess additional tax, and add penalties and interest.

Q3: Can I request more time to respond?

👉 Yes. You can contact the IRS to request an extension if you need more time to gather documentation.

Q4: Do I qualify for LITC help?

👉 If your income is within IRS guidelines (≤250% of the federal poverty level) or you speak English as a second language, you may qualify for free representation.

Q5: What if I don’t have the requested records?

👉 CPA Clinics can help you explain your situation to the IRS and explore alternative documentation or resolution options.

Contact Us – We’re Here to Help

If you’ve received IRS Letter 566, act immediately. Relief and representation may be available.

📞 Call our LITC Hotline today: 516‑464‑1844
📧 Email: info@cpaclinics.com
🌐 Website: www.cpaclinics.com
📍 Locations: Bronx, Manhattan, Hempstead, Hicksville