Letter 566 (and variants like 566-S, 566-B, 566-D, 566-T) is the IRS’s way of starting a correspondence examination — an audit conducted by mail rather than in-person visits. Unlike field audits at your business or office examinations, correspondence exams are usually narrower in scope and faster when you respond with the right documents in the right format.

The IRS explains the overall exam process in Publication 3498 and the mail-based workflow in Publication 3498-A.

Why you were selected: The IRS uses filters and data comparisons to flag specific issues like Head of Household filing status, dependents/credits (EITC/CTC/AOTC), Schedule C expenses, child/dependent care, or income mismatches. Your Letter 566 will list the exact items they want you to document.

The key advantage: When you respond clearly and on time with proper documentation, many correspondence exams close without escalation to more intensive audit procedures.

Ed Parsons, CPA builds examiner-ready packages with issue-by-issue exhibits, pagination, index, and cover letters that mirror IRS expectations, reducing back-and-forth and keeping the case narrow. Get expert help with your Letter 566 response.

First, match the notice name/number, your tax year, and the issues listed with what the IRS commonly sends in examinations. The IRS’s official mail-audit guide, Publication 3498-A, describes audits by mail and the kind of documentation you’ll be asked to provide.

Cross-reference with official sources: Check the Letters and notices offering an appeal opportunity page for legitimate notice types. The Taxpayer Advocate Service notice index also maintains plain-English summaries you can compare against.

Red flags to watch for: Anything asking you to plug in a device, pay a non-IRS entity, or call a number that isn’t listed on irs.gov. Legitimate IRS notices don’t demand immediate payment by gift card, wire transfer, or cryptocurrency.

If you’re unsure: Call an IRS number you find directly on irs.gov (not from the letter) and ask them to confirm the notice exists on your account. While verifying, do not share full SSNs or financial data with anyone whose identity isn’t certain.

Ed Parsons, CPA confirms legitimacy against your IRS account/transcripts and prepares a fast but safe response plan so deadlines don’t slip while you’re verifying. Start with professional verification.

Most Letter 566 cases give you 30 days to respond, and that window is real. Missing it can push the IRS to issue a Letter 525 (30-Day Letter) or eventually a CP3219A (90-Day Notice of Deficiency).

The IRS’s Publication 3498-A explains the typical sequence for audits by mail, while Publication 556 covers your appeal rights if the IRS proposes changes.

Extensions are possible — but ask early and be reasonable (for example, an extra 2-4 weeks to collect third-party statements). The key is contacting your examiner before your due date with a specific timeline and valid reason.

Pro tip: If your examiner offers secure messaging/upload, using it can shorten review times. Always keep proof: certified mail receipts, fax confirmations, or upload IDs.

Ed Parsons, CPA calendars every deadline, requests extensions before the due date when beneficial, and keeps a synchronized document log so nothing gets lost. If your case is approaching statute limits, Ed evaluates timing alongside IRS guidelines and negotiates smart, narrow extensions only when needed. Don’t risk missing deadlines—get professional help.

The fastest path to closure is sending precisely what was requested in a clean, organized format. The IRS literally tells you how to package mail-audit evidence in Publication 3498-A.

Follow these essentials:

• Copies only, never originals. Number every page sequentially
• Bundle by issue. Create tabs/sections (Issue 1: Head of Household; Issue 2: EITC; Issue 3: Schedule C expenses, etc.)
• Cover letter (1-2 pages) summarizing each issue, key facts, and an index of exhibits
• Exhibit index: “Exhibit A1-A9: child’s school/medical records showing residency at taxpayer’s address for >6 months”
• Proof of mailing/upload. Keep certified receipts or portal confirmations

Quality over quantity: Don’t overwhelm the examiner with irrelevant documents. Focus on directly addressing each questioned item with the most compelling evidence available.

Ed Parsons, CPA translates your real-world proof into IRS-friendly exhibits, spotting gaps before the IRS does and writing the bridges that connect each document to a return line. That saves weeks of back-and-forth and reduces the chance of a 30-Day Letter. Get professional document preparation.

Different issues demand different proof. Here are the high-frequency examples that actually work:

Head of Household / Dependents — Show that a qualifying person lived with you more than half the year: school enrollment records, medical records, lease/mortgage documents, utility bills — all showing the same address and dates. Tie each page to the dependent’s name and the tax year.

Credits (EITC/CTC/AOTC & Dependent Care) — For AOTC, you’ll need Form 1098-T plus proof of payment (bank statements, receipts). For dependent care, provide statements showing the provider’s EIN/SSN and your payments. For EITC/CTC, provide residency and relationship proof similar to HOH requirements.

Schedule C (Self-employed) — Bank statements showing business deposits, invoices/contracts with clients, contemporaneous mileage logs (not reconstructed), and a simple profit & loss statement that ties to your filed return.

Income verification — 1099s, W-2s, bank statements showing deposits, and reconciliations explaining any differences between reported income and bank deposits.

Ed Parsons, CPA assembles issue-specific evidence packs and, when records are thin, pursues third-party reprints from schools, banks, clinics, and payroll providers. He writes crisp reconciliations so your file is persuasive and complete. Get professional document assembly.

Don’t panic and absolutely don’t fabricate anything. The IRS cares about consistency and corroboration, and they can spot manufactured documents. The audit-by-mail process in Publication 3498-A shows they expect real documentation.

Practical steps for missing records:

• Re-request documents from third parties (banks, schools, clinics, insurers, payroll processors)
• Build corroboration sets: Daycare ledger missing? Combine bank statements showing payments + emails/text confirmations + factual statement explaining what happened
• Explain anomalies upfront: If bank deposits don’t equal reported income, attach a reconciliation showing transfers, cash transactions, app payouts
• Concede weak portions: If part of a claim isn’t supportable, acknowledge it; preserve credibility on the rest

What NOT to do: Don’t submit recreated logs that look too perfect, don’t ignore obvious inconsistencies hoping the examiner won’t notice, and don’t wait until the last minute to gather third-party documents.

Ed Parsons, CPA conducts a pre-IRS quality audit of your documents, identifies gaps, requests reprints on your behalf, and drafts plain-English explanations that make a messy file coherent. He watches the calendar so a missing statement doesn’t spiral into a 30-Day Letter. Fix messy records professionally.

Your Letter 566 will specify what the examiner accepts: postal mail, fax, or a secure messaging/upload option. Secure upload, when offered, is typically fastest and provides immediate confirmation of receipt.

Communication best practices:

• Keep a correspondence log: dates, names/IDs, confirmation numbers
• Use certified mail if mailing documents
• Save all confirmations: certified mail receipts, fax confirmations, upload IDs
• Follow up appropriately: Don’t call daily, but do confirm receipt if you haven’t heard back within reasonable timeframes

Campus exam telephone procedures are documented at IRM 4.19.19. For overall exam expectations, see Publication 3498.

Professional representation advantage: When you authorize Ed Parsons, CPA via Form 2848, the examiner calls Ed, not you. This eliminates phone tag, miscommunications, and stressful calls during your workday.

Ed uses the IRS’s online submission tool for Form 2848 to accelerate representation setup. Let Ed handle all IRS communications.

Yes, absolutely. To let a professional speak to the IRS on your behalf, you’ll file Form 2848, Power of Attorney. The IRS accepts secure online submission of Forms 2848/8821 at this link, which is faster than mailing.

Why representation matters: Good representation converts a vague, open-ended document hunt into a targeted evidence project. Combined with the packaging standards from Publication 3498-A, professional representation often prevents escalation to a 30-Day Letter by giving the examiner exactly what they need the first time.

What changes with representation: Once Form 2848 is processed, the examiner should route all communications through your representative. This reduces miscommunication, eliminates stressful phone calls during your day, and ensures technically accurate responses.

Choosing the right representative: Look for someone with specific correspondence examination experience, not just general tax knowledge. The ability to package evidence according to IRS expectations is crucial.

Ed Parsons, CPA has a calm, methodical style honed over 25+ years in tax controversy. He obtains transcripts, maps out issue-by-issue proof, drafts cover letters and exhibit indices, and keeps your timeline tight. See the kind of technical depth he brings in his Advanced Guide to IRS Transcripts. Hand off the IRS calls and paperwork today.

Form 872 extends the IRS’s time to assess additional tax. You are not required to sign a broad, open-ended extension. The IRS explains your rights and considerations in Publication 1035, Extending the Tax Assessment Period.

When extensions might help you: A short, narrow extension (limited to specific issues and a specific date) can be beneficial when one last crucial document is pending and would avoid a rushed, unfavorable proposal. For example, waiting for school records to prove dependent residency.

When extensions don’t help: If your file is complete and strong, extending time provides no benefit and may just delay resolution. Some taxpayers sign extensions hoping the IRS will “forget” about their case—this rarely works.

Strategic considerations: Coordinate statute decisions with your potential appeal rights under Publication 556. Extending the statute doesn’t require you to concede anything; it just changes the clock. If you don’t sign, the IRS may issue a 30-Day Letter or 90-Day Notice to preserve their rights.

Ed Parsons, CPA audits your statute posture across all tax years, weighs the risk/reward of extensions, and negotiates the narrowest acceptable extension only if it truly helps your case. This is a tactical decision with long-term consequences. Get experienced guidance on statute decisions.

A Letter 525 usually includes Form 4549 (the examination report) and gives you 30 days to either agree with the proposed changes or file a protest. This is your formal opportunity to challenge the examiner’s conclusions before assessment.

The IRS’s Appeals page lists notice types that provide an appeal opportunity and explains the 30-day timeframe. For deeper understanding of your exam and appeal rights, see Publication 556.

If you disagree: Your protest should be organized like your original exam response—issue-by-issue facts, exhibits, and a concise explanation of why the examiner’s conclusion doesn’t fit the law or evidence. Small case procedures may be acceptable for lower dollar amounts; otherwise, draft a full formal protest.

What happens if you do nothing: The IRS can move toward a Statutory Notice of Deficiency (CP3219A), which starts a 90-day clock to petition Tax Court. Missing the 30-day protest window doesn’t end your rights, but it limits your options.

Appeals vs. Tax Court: Appeals is generally less formal, faster, and allows settlement discussions. Tax Court is more formal but provides independent judicial review.

Ed Parsons, CPA writes Appeals-ready protests that respect IRS format requirements and demonstrate credibility. He often wins narrowing concessions or complete no-change determinations where the facts support it, and positions you intelligently if the case needs to advance further. Don’t let your 30 days evaporate—talk to Ed now.

A CP3219A is the IRS’s legal notice that allows you 90 days to petition the U.S. Tax Court before assessment occurs. This is a hard deadline with serious consequences if missed. Read the IRS explainer at Understanding your CP3219A notice.

The Taxpayer Advocate Service also summarizes the notice and timelines. If you miss the 90-day window, assessment occurs automatically and your leverage changes significantly.

Your options with CP3219A:

• Petition Tax Court within 90 days to contest the proposed changes
• Request Appeals consideration while preserving your petition rights
• Do nothing and let the assessment occur (not recommended unless you agree with all proposed changes)

Strategic considerations: Consider whether you’re better served by Appeals before filing a petition, or whether a petition is necessary to protect your rights. Your prior correspondence package should already be organized; expand or refine it so Appeals or Tax Court Counsel can see your story quickly.

Ed Parsons, CPA evaluates forum choice (Appeals vs. Tax Court petition), calendars the critical 90-day deadline, and prepares a comprehensive record so you don’t waste precious time. His goal is the least intrusive path that produces the fairest result. Get urgent help with CP3219A strategy.

TAS helps when you face significant hardship, repeated processing delays, or systemic problems blocking a fair outcome. They don’t replace good documentation, but they can facilitate communication when normal channels stall.

Start with the TAS notice index to understand how TAS approaches common letters. For CP3219A specifically, see their CP3219A guidance.

When TAS can help:

• IRS isn’t responding to your properly submitted documents
• You’re facing economic hardship due to IRS delays
• Normal communication channels have broken down
• You’re close to missing critical deadlines due to IRS processing issues

TAS expectations: They’ll expect you to have tried routine paths first and to present your case coherently with a clear timeline, documents, and specific resolution needed.

Important limitation: TAS doesn’t replace the need for a well-built file. The stronger your documentation package, the faster TAS (or any examiner) can help resolve your case.

Ed Parsons, CPA determines whether you meet TAS criteria, assembles a TAS-ready packet, and continues managing the exam in parallel so momentum isn’t lost. If TAS isn’t appropriate, Ed keeps you on course with standard exam/Appeals procedures. Facing communication breakdowns? Contact Ed immediately.

It can. During an examination, the IRS may hold refunds pending resolution, and if they see the same issues in other years, they may expand their inquiry or open additional periods for examination.

The general exam workflow and “what to expect” are outlined in Publication 3498 and Publication 3498-A. The IRS has broad authority to examine related years and similar issues.

How scope can expand:

• Inconsistencies in your documentation trigger questions about other years
• Pattern recognition—if you claim the same dependent for multiple years, they may examine all related returns
• Income mismatches that appear systematic rather than isolated
• Schedule C issues that suggest ongoing problems with business reporting

Scope protection strategies: Keep your response tight, consistent, and well-documented. Address patterns the examiner will notice proactively. If there are legitimate explanations for year-to-year variations, provide them upfront.

Ed Parsons, CPA reviews IRS transcripts to see what the IRS already sees across all your tax years, then aligns your exhibits so they address patterns the examiner will notice. This reduces surprises, minimizes follow-ups, and provides the best chance of closing the case without expanding scope. Protect your refund and contain the examination.

Interest accrues on any underpayment until resolved. Penalties depend on the specific issue and can include accuracy-related penalties for substantial understatements, negligence penalties, or credit-specific disallowance periods if due diligence requirements aren’t met.

Your baseline rights and appeal options are explained in Publication 556. If assessment occurs and you can’t pay immediately, Publication 594 (The IRS Collection Process) explains payment options.

Common penalties in correspondence exams:

• Accuracy-related penalty (20%) for substantial understatements or negligence
• Credit disallowance periods (2-10 years) for certain tax credits if due diligence requirements aren’t met
• Failure to file/pay penalties if the examination reveals additional tax liability
• Interest on all unpaid amounts from the original due date

Penalty mitigation strategies: Document reasonable cause (records destroyed in disaster, reliance on incorrect professional advice, etc.). Keep your tone professional and timeline clear. Often, winning a no-change determination or smaller adjustment makes penalties moot.

Ed Parsons, CPA builds penalty defenses into the examination response from day one—not as an afterthought—and negotiates practical outcomes that minimize cash impact. If there’s still a balance after resolution, Ed guides you through payment options so collections don’t undo the relief achieved. Get comprehensive penalty defense strategy.

A no-change letter means the IRS accepted your return as filed after reviewing your documentation. This is the best possible outcome—no additional tax, no penalties, no interest, and often a quick release of any held refunds.

The path is straightforward: mirror the mail-audit process in Publication 3498-A with a clean issues list, numbered exhibits tied to each issue, and a concise cover letter that makes it easy for the examiner to verify your claims and close the case.

Keys to no-change success:

• Complete documentation for every questioned item
• Clear organization that allows quick verification
• Consistent story across all documents and explanations
• Professional presentation that builds examiner confidence
• Factual tone—avoid extra commentary or arguments

After no-change closure: Archive your package (digitally and physically) because the same issue can arise in later years. If the exam prompted documentation improvements (mileage logs, daycare receipts), implement those fixes now so you never fight the same battle twice.

Ed Parsons, CPA designs files to be “checkable”—an examiner can verify claims in minutes, not hours. This approach earns credibility and accelerates closure. Ed then provides a post-audit checklist so future years are audit-resistant. Ready for a no-drama no-change win?

Anyone can compile documents, but very few can package and sequence them in a way that makes an examiner’s job easy—and that’s where outcomes improve. Publication 3498-A sets the standard, and Ed Parsons, CPA builds to that standard with issue-by-issue bundles, clean indices, and tight, respectful cover letters.

What Ed provides beyond document compilation:

• Strategic approach: Uses Form 2848 and IRS online tools so he handles all calls and uploads
• Deadline management: Watches statutes and negotiates Form 872 extensions only when beneficial
• Appeals readiness: Prepares protest-ready files if a Letter 525 arrives
• Tax Court positioning: Properly handles CP3219A situations with 90-day deadlines
• Technical depth: Uses transcript analysis to anticipate examiner questions

The “quiet” factor: Most importantly, Ed gives you peace of mind. No more IRS phone tag, no guessing about deadlines, no document chaos—just a credible package, clear strategy, and professional handling from start to finish.

25+ years of tax controversy experience means Ed knows what examiners look for, how Appeals officers think, and what documentation actually works in practice, not just in theory.

Start your professional triage: IRS Tax Resolution Services and Contact Ed Parsons, CPA.

Yes. Start with the IRS’s framework in Publication 3498-A, then use these practical templates:

Cover Letter Skeleton:

• Header with name, masked SSN, tax year, Letter 566 variant
• Bullet list of issues with one-line conclusions
• Index of exhibits with clear descriptions
• Specific outcome requested (e.g., “no change on all issues”)

Exhibit Organization System:

• A-series for HOH/Dependents
• B-series for Credits (EITC/CTC/AOTC)
• C-series for Schedule C issues
• D-series for explanations/affidavits

Transmission Log: Date, method (certified mail/fax/upload), confirmation ID, notes of any phone contact.

Professional enhancement: Ed provides done-for-you versions of these templates aligned to your specific issues, plus uses transcript analysis to anticipate follow-up questions. See his approach in the Advanced Guide to IRS Transcripts.

Get professional templates and guided walkthrough from Ed.

It depends on the findings and your risk tolerance. If the exam revealed a recurring documentation gap (mileage logs, dependent residency proof), fix it immediately and consider amending other years only when it materially reduces risk or saves significant tax.

If you disagree with the outcome: Weigh an Appeals protest using the guidance in Publication 556 and the Appeals notices page for deadlines. If a CP3219A was issued, you have a hard 90-day deadline to petition Tax Court.

Strategic considerations for amendments:

• Does the issue appear in other years with similar fact patterns?
• Would proactive amendment reduce audit risk or save penalties/interest?
• Do you have the documentation to support amendments?
• Are you within the statute of limitations for refund claims?

Building audit resistance: A clean close isn’t just about this year—it’s about preventing the next notice. Build repeatable systems for record-keeping and set annual reminders to pull transcripts so you catch mismatches early.

Ed Parsons, CPA maps out the complete post-audit strategy—whether that’s appealing, amending, payment planning, or documentation system upgrades—so you leave this experience stronger and less likely to see repeat examinations. Get your post-audit strategic debrief.

Hours 0-4: Verify & Map. Ed validates the notice against IRS publications and pulls transcripts to understand the complete examination scope. If other years or issues might be exposed, he identifies them so nothing blindsides you later.

Hours 4-12: Strategize & Calendar. Ed evaluates your documentation status, maps each questioned issue to required proof, and creates a response timeline. If extensions are needed, he contacts the examiner before your deadline with a specific, reasonable request.

Hours 12-48: Document & Package. Ed begins assembling your evidence package with proper organization, identifies any missing third-party documents, and starts the Form 2848 process so he handles all IRS communications going forward.

Continuous support: Throughout the process, Ed maintains a detailed correspondence log, tracks all deadlines, and communicates with you regularly so you can focus on work and family instead of IRS stress.

Ready to hand off the IRS headache? Contact Ed Parsons, CPA for immediate Letter 566 triage and response strategy.

1. Verify legitimacy using Publication 3498-A and official IRS resources
2. Calendar your deadline—typically 30 days from the notice date
3. Identify questioned issues and gather relevant documentation for each
4. Organize evidence by issue with numbered pages and clear exhibit indices
5. Draft cover letter summarizing your position on each issue
6. Submit response via the method specified (mail, fax, secure upload)
7. Keep detailed records of all communications and confirmations
8. Follow up appropriately and respond to any additional requests promptly

Professional shortcut: Skip the stress and learning curve. Ed Parsons, CPA — IRS Tax Resolution handles this entire checklist with 25+ years of experience and a proven track record of successful correspondence examination resolutions.

Don’t wait until the deadline approaches. Contact Ed today for immediate professional assistance.