Letter 566 Audit Start IRS Letter: Meaning, Records, and Next Steps

Letter 566 Audit Start IRS Letter concerns a correspondence-examination opening letter. The first job is to make an indexed response tied to each requested return item.

This page is a preparation guide, not a prediction about a personal tax result. Start with the exact IRS or court document in front of you, because the tax period, procedural stage, requested action, and date can change the correct response.

What Letter 566 Audit Start IRS Letter changes

Letter 566 Audit Start IRS Letter concerns a correspondence-examination opening letter. The first job is to make an indexed response tied to each requested return item.

The practical question is narrower than “How do I fight the IRS?” Identify the figure, return item, property, payment stream, form, or decision involved. Then identify the record that would confirm or contradict it. A focused file is easier to review than a long narrative that mixes liability, collection, and personal history.

Reconcile the account before explaining Letter 566 Audit Start IRS Letter

A persuasive explanation cannot repair an unreconciled account. Create one row for each relevant assessment, adjustment, credit, payment, refund, penalty, interest entry, or return-processing event. Tie each row to the correct taxpayer, form, and period. Start with Letter 566, then use document request to test whether the account event and the underlying record agree.

Do not net several years together or assume that proof of payment shows where the IRS applied it. List transfers, amended returns, offsets, reversals, and duplicate entries separately. The final difference should be stated as a specific figure or unresolved transaction—not as a general belief that the balance is wrong.

Build the working file

Keep originals secure and work from copies unless an official instruction specifically requires an original. Number the records so a reviewer can move from the issue list to the evidence without guessing.

• Letter 566
• Document request
• Return and schedules
• Receipts
• Logs
• Third-party statements

Common mistakes to avoid

• Responding before reconciling the IRS figures with the filed return and account record
• Separating a page from the notice package or discarding the envelope
• Using a general deadline instead of the date and instructions on this document

Do not add Social Security numbers, bank details, returns, or other private records to an ordinary website message. Use the official IRS portal, the delivery method in the notice, or a secure channel established by a qualified professional.

A careful response sequence

1. Read every page and identify the notice or letter number, tax period, stated amount, and requested action.
2. Compare the notice with the filed return, account or wage transcript, payment confirmations, and prior correspondence.
3. Mark each disputed line as agree, disagree, partly agree, or still unknown; attach only records that answer that line.
4. Use the official mail, fax, online, phone, appeal, or court channel stated in the document.
5. Keep a complete copy and delivery proof, then calendar a follow-up date instead of assuming the account changed.

When qualified help may fit

Consider prompt help when the document involves a Tax Court or appeal deadline, an active levy, a filed lien affecting property, payroll tax, a responsible-person interview, possible fraud or criminal exposure, a business at risk of closing, sensitive spouse facts, or records you cannot reliably reconstruct. Tax attorneys, CPAs, and enrolled agents have different backgrounds; the useful question is whether the person has the credential and experience needed for this exact stage.