Letter 566: the IRS opened an audit of your return

Your return has been selected for examination. The letter names the specific items the IRS wants to verify, such as income, deductions or credits, and lists the proof it wants to see.

Being picked is not an accusation. The audit is a request to back up what you claimed, and good records usually answer most questions. Read the letter twice: it says which year is under review, which items are in question, who your contact is, and when the documents are due.

The deadline is on your letter. The Taxpayer Advocate Service says to "Provide the documentation requested by the due date on the letter." If you can't make it, ask for more time before that date.

The questioned items will be disallowed. Per the Taxpayer Advocate Service, the IRS then sends an examination report showing the proposed tax changes. In practice that turns a records request into a tax bill for the full amount of every item you didn't support.

1. List each item the letter questions.
2. Pull receipts, statements, logs and invoices for those items only.
3. Make complete, readable copies. Never send originals.
4. Put the copies in the same order as the IRS list.
5. Decide whether you want a representative to handle contact with the examiner, and if so, sign Form 2848 early.

Only the records for the items listed in your letter. If the IRS asks about a deduction, send proof of that deduction, not your whole year. Typical support includes bank and card statements, receipts and invoices, mileage logs, canceled checks, and the forms behind any income or credit in question.

Write a short cover note that lists each item and the pages that support it. Number the pages. If something is missing, say so and explain how you are getting it, instead of leaving a silent gap. A clear package makes the examiner's job shorter, and a shorter review is usually a calmer one for you.

Blaga organizes complete, readable copies of the requested documents and represents you with the examiner under a Form 2848 power of attorney. If changes are proposed, she reviews the report and explains your appeal options.

The EA credential is the highest the IRS awards, according to the IRS. Blaga's office sits on FM 1960 W in Houston, and she also works by secure portal. Business owners with messy records can start with catch-up bookkeeping.

After the examiner reviews your records, the audit closes with no change or with a report of proposed changes. That report can come with a 30-day letter such as Letter 525. Read more about the whole process on our IRS audit help page.