Understanding IRS Letter 566 and How an Enrolled Agent Can Help
Steve Perry**IRS Letter 566** notifies taxpayers that their return has been selected for a correspondence audit—typically handled through mail. This letter does not imply wrongdoing but signals the IRS wants more information about specific items on the return. Common areas under review include the Earned Income Tax Credit (EITC), child tax credits, head of household status, business expenses, charitable donations, and self-employment income. The letter outlines the tax year in question, the specific issues being examined, the documents required (like receipts or statements), and a response deadline. Failure to respond may lead to denied credits or deductions, additional tax, penalties, and interest. Taxpayers can respond by submitting complete documentation, requesting more time, or disputing findings with evidence. However, audits can be stressful and complex. **Steve Perry, Enrolled Agent at Books, Taxes & More**, is federally licensed to represent taxpayers before the IRS. He can review the letter, prepare responses, communicate with the IRS, and file appeals if needed—ensuring rights are protected and stress is minimized. Receiving Letter 566 doesn't mean you're in trouble—it means it’s time to respond carefully. Engaging an Enrolled Agent like Steve early in the process increases the chances of a smooth and favorable resolution.