IRS CP566 Notice: What Is It and How Should You Respond?
Summary:
The CP566 Notice is issued by the IRS when additional documentation is needed to complete your application for an Individual Taxpayer Identification Number (ITIN). This notice often arises when the submitted form is incomplete or incorrect documents have been provided. In this article, we’ll explain what this notice means, its implications, and the steps you should take to resolve it promptly to avoid delays.
Receiving a CP566 Notice from the IRS can be overwhelming, but it’s important to address it quickly. The notice signals that there’s missing or incomplete information in your application for an ITIN, which needs to be resolved before the IRS can proceed. Ignoring this notice may lead to further delays in your application, and in some cases, penalties. This article will guide you on what CP566 entails and how to respond effectively to ensure timely resolution.
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What is the IRS CP566 notice?
The IRS sends the CP566 Notice when your application for an ITIN is incomplete or incorrect. The notice may highlight specific documents that are missing, or it may request additional information for verification purposes. An ITIN is issued to individuals who are not eligible for a Social Security number but need to file U.S. taxes.
Common reasons for receiving a CP566 Notice include:
- Submission of an incomplete ITIN application form (Form W-7).
- Incorrect or insufficient supporting documents (such as identification).
- Failure to provide original documents or certified copies from the issuing agency.
- Errors or discrepancies in the information provided.
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How the CP566 notice affects you
The IRS cannot process your ITIN application until the requested information is provided. This can cause delays in filing your tax return if you need the ITIN to complete your filing. Furthermore, any tax refunds or credits you’re entitled to may be delayed until your ITIN application is processed. If the IRS does not receive the necessary documents within the specified timeframe, your application may be rejected, forcing you to restart the process.
Ignoring the CP566 Notice can lead to complications such as:
- Delay in processing your ITIN application.
- Inability to file your tax return on time.
- Delay in receiving tax refunds or credits that require an ITIN.
It’s crucial to respond promptly and provide the correct documentation to avoid these issues.
Pro tip
Always ensure the supporting documents for your ITIN application are original or certified by the issuing agency. Incorrect or insufficient documentation can cause further delays.
Steps to take when you receive a CP566 notice
When you receive a CP566 Notice, it’s essential to act quickly to avoid delays. Follow these steps to resolve the issue:
- Review the notice: Carefully read through the notice to identify what specific documents or information the IRS is requesting.
- Verify your application: Check the information you initially provided to ensure that all the details are correct and that you included the necessary documents.
- Gather the required documents: Depending on what the IRS is asking for, gather the missing or corrected documents (e.g., identification, immigration status, or a corrected W-7 form).
- Submit the documents: Follow the instructions in the notice to send the requested information. Ensure you submit original documents or certified copies, as photocopies are not accepted.
- Track your submission: Keep copies of everything you send to the IRS and use a method like certified mail with a return receipt to track your submission and confirm it was received.
Responding promptly and accurately ensures your ITIN application will be processed without unnecessary delays.
Pro tip
When mailing documents to the IRS, use certified mail with a return receipt to confirm that your documents were received.
How to respond to the CP566 notice
Key steps to take:
After reviewing your CP566 Notice, the next important step is to respond with the required documentation. Here are the key steps to follow:
- Identify the missing documents: The IRS will specify which forms or information are missing. For example, this could be missing identity verification documents or errors in Form W-7.
- Submit corrections: If there’s a mistake on your application, you may need to correct and resubmit the form with the proper details.
- Send your response: Depending on the notice, you may be required to mail your documents. Ensure that all forms are signed and that original documents or certified copies are sent as per IRS requirements.
- Contact the IRS if needed: If you’re unsure about the notice or what documentation to submit, consider contacting the IRS directly for clarification. You may also want to consult a tax professional to help resolve the issue swiftly.
Other considerations for handling a CP566 notice
If your CP566 Notice involves identity verification or suspected identity theft, you should take steps to protect your personal information. The IRS offers an **Identity Protection PIN (IP PIN)** program, which adds an extra layer of security to your tax filings.
Additionally, while most responses to the CP566 Notice must be submitted by mail, the IRS provides options for online submission of certain forms through their secure portal, which can expedite the process.
Further support options for addressing a CP566 notice
If you’re unsure how to proceed after receiving a CP566 Notice, here are some options for support:
- Consult a tax professional: A CPA or tax attorney can help you resolve complex issues related to your ITIN application, especially if there are discrepancies or potential penalties.
- IRS website: The IRS offers an abundance of resources, including FAQs and guides on how to resolve issues related to ITIN applications.
- Taxpayer Advocate Service: If you’re facing difficulties resolving your ITIN issue, the IRS offers a Taxpayer Advocate Service that provides free assistance to individuals with unresolved tax problems.
Pro tip
If you’ve experienced identity theft, consider enrolling in the IRS’s Identity Protection PIN (IP PIN) program. It helps protect your tax filings from fraudulent activity.
Potential penalties for not responding
Failure to respond to a CP566 Notice can lead to severe consequences. The IRS relies on the requested information to process your ITIN application accurately. If you do not provide the necessary documents, your application may be delayed or rejected.
Consequences for not responding include:
- Rejection of your ITIN application.
- Inability to file your tax return if an ITIN is required.
- Delayed refunds or credits related to your tax filings.
Timely responses are crucial to avoid these complications.
Potential outcomes after you respond
Once you respond to the CP566 Notice, several outcomes are possible based on the completeness of your response:
- If your documentation is complete: The IRS will review your submission, and your ITIN will be issued if all information is correct.
- If more information is needed: The IRS may send a follow-up notice if additional details or corrections are still required.
- If identity theft is suspected: The IRS may take extra steps to protect your account, such as enrolling you in the Identity Protection PIN program.
Responding accurately and promptly will help ensure that your ITIN application is processed as smoothly as possible.
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Frequently asked questions
What documents do I need to submit with my CP566 notice response?
To respond to a CP566 Notice, you will need to provide the specific documents the IRS requested. Commonly required documents include original identification documents or certified copies, such as a passport or national identification card. Make sure to send all documents as originals or certified copies from the issuing agency. Photocopies are not accepted by the IRS.
How long do I have to respond to a CP566 notice?
The CP566 Notice usually specifies a deadline for responding, typically within 45 to 60 days. It’s important to respond within this timeframe to avoid delays in processing your ITIN application or tax return. If you are unable to respond within the given period, contact the IRS as soon as possible to request an extension.
What happens if my ITIN application is rejected?
If your ITIN application is rejected, you will not receive an ITIN, which could prevent you from filing a tax return or claiming certain tax credits. If rejected, you may need to correct the errors on your application or gather missing documents and reapply. Make sure to address any issues highlighted in the rejection notice and follow IRS instructions carefully when reapplying.
Can I file my taxes without an ITIN?
No, you cannot file a federal tax return without either a Social Security number (SSN) or an ITIN. If you’re not eligible for an SSN, an ITIN is required to file your taxes. Failing to obtain an ITIN or provide the necessary documentation can result in penalties, delayed processing of your tax return, and withholding of any refunds or credits.
Can I appeal the IRS’s decision regarding my ITIN application?
If the IRS rejects your ITIN application or you disagree with their decision, you can contact the IRS for clarification or to provide additional documentation. You may also seek the assistance of the IRS Taxpayer Advocate Service or consult a tax professional to help resolve the issue. If necessary, you can submit an amended application with the correct information to reapply.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- The CP566 Notice is issued when the IRS requires additional information to process your ITIN application.
- Responding promptly with accurate documentation can prevent delays in your application or tax return.
- Failure to respond can lead to application rejection and the inability to file your taxes with an ITIN.
- Seek professional help if needed to ensure your application is completed accurately and on time.
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