IRS notice
IRS Letter 566: Your Return Has Been Selected for Examination
The IRS's first contact in an audit by mail: it lists the items in question and asks for documents by the due date on the letter.
Reply by the date on the notice
The due date on the letter is the one that matters; if nothing arrives by then, the questioned items are disallowed and an examination report follows.
Letter 566 is an initial contact letter: the IRS has selected your return for examination and lists the specific items it is questioning, along with the documents it wants to see. Being selected doesn't automatically mean something is wrong. Send copies of records that support each listed item by the due date on the letter, because items you don't support will be disallowed.
What this notice is telling you
- The IRS has opened an examination of your return, usually handled by correspondence.
- The letter names the items being questioned, or items it believes are missing from the return.
- It asks for specific documentation and may include a questionnaire to complete.
- The examination can end with the return accepted as filed, a request for more information, or proposed changes.
What to do
Identify your letter's variant
Check the letter number in the corner. A 566-S generally audits a specific item; a 566-E typically covers wages, withholding and refundable credits; a 566-B or 566-J combines the first contact with a proposed report and a 30-day appeal window.
Make a checklist from the letter
List every item the IRS questions and every document it asks for. Answer only what is asked, completely.
Send copies, never originals
If you fax or upload, put your name and taxpayer identification number on each page. Complete and return any questionnaire included with the letter.
Call or write if something is unclear
Use the number or address on the letter if you're unsure what records will satisfy a request. If you need more time, ask before the due date rather than after.
Keep a record of what you sent
Note the date, method and contents of your response. If the examiner later asks for more, you'll know exactly what is already in the file.
The Letter 566 family
| Letter | What it generally signals |
|---|---|
| 566-S | An examination of a specific item on the return |
| 566-E | Questions about wages, withholding and refundable credits |
| 566-B, 566-J | First contact combined with a proposed report (Form 4549) and a 30- or 45-day response window |
| 566 (IN/PR) | A version used for international or Puerto Rico addresses |
When the first letter already includes a report
Some taxpayers receive a combined letter, a 566-B or 566-J, that encloses Form 4549 showing what the IRS will change if you don't support the items. These letters give 30 or 45 days from the letter date. You can sign the report if you agree, respond in writing with documents if you don't, ask for a conference with the examiner's manager, or request a conference with the IRS Independent Office of Appeals before the response date in the letter.
What happens if you don't respond
The Taxpayer Advocate Service is direct about this: if you don't respond by the due date, the items in question will be disallowed, and the IRS will send an examination report showing the proposed tax changes. For a mail audit that report usually arrives with Letter 525, the general 30-day letter. Responding to the first letter is the cheapest point in the process to resolve an item, since the examiner is still gathering facts rather than defending a proposed result.
Where this notice sits
- Letter 566
- Letter 525
The usual order. Not every account gets every notice, and some steps can be skipped.
Want a CPA to deal with it?
Bring the notice to a free consultation, in person on James Island or by video. We read it with you, tell you what it means for your account and, if you want us to, take over the response once you sign Form 2848.
Tax Controversy — IRS audits, penalty abatement, appeals, and back-tax resolution.
Sources
By Haigler CPA Group. Updated . Notices are revised from time to time, so go by the wording and dates on your own notice. The information on this site is general in nature and is not tax, legal, or accounting advice for your situation. Tax law changes and the right answer depends on facts we would need to review with you. Please speak with a qualified professional before acting on anything you read here.
Questions about Letter 566
What should I send in response to Letter 566?
Copies of the records the letter asks for, organized by the items it lists, plus any questionnaire it encloses. Don't send originals, and don't send records for items the IRS didn't ask about.
What does Letter 566-B mean?
It is a combined letter: it opens the examination and encloses a proposed report on Form 4549 at the same time, giving you 30 or 45 days from the letter date to respond or request Appeals.
Can the IRS accept my return without changes after a Letter 566?
Yes. After reviewing what you send, the examiner may accept the return as filed, ask for more information, or propose changes.
Is there an IRS publication that explains a mail audit?
Yes. The Taxpayer Advocate Service points to Publication 3498-A, which explains the examination process when the audit is handled by mail.
Other notices
- Letter 950: 30-day letter for an unagreed auditThe IRS 30-day letter for audit changes you haven't agreed to. File a protest to Appeals within 30 days or expect a notice of deficiency.
- CP2000: Proposed changes to your returnThird-party income reports don't match your return, so the IRS proposes a change. Not a bill yet; reply by the date on the notice.
- IRS notice lookupEvery IRS notice carries a code. Find yours below to see what it generally means, which date matters, and what to do before that date passes.
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