The LTR 566 is the IRS's shopping list during an audit. It's a formal Information Document Request (IDR) that tells you exactly what records, documents, and information the examiner wants to review. Every item on that list matters. Items you don't provide are items the auditor will resolve against you.
What an IDR Looks Like
The IDR lists specific categories of documents. Bank statements for specific months. Receipts supporting specific deductions. Contracts or invoices for specific transactions. Vehicle mileage logs. Home office measurements. Proof of business use for assets you depreciated. The requests are targeted to the issues under examination.
Some IDRs are broad. Some are narrow. A correspondence audit might request three items. A field audit of a business might request 30. The scope depends on what the auditor is examining and what they've found so far.
How to Respond
Go through the IDR item by item. For each request, gather the exact document or information described. Organize your response to match the order of the IDR. Label each section clearly. If you're providing 200 pages of bank statements, tab them by month so the auditor doesn't have to dig.
The quality of your response directly affects the outcome. A well-organized, complete response signals that you kept good records and have nothing to hide. A disorganized pile of papers signals the opposite and invites the auditor to dig deeper.
What If You Don't Have the Records
If you can't locate a requested document, don't just skip it. Explain what you looked for, why you can't find it, and provide alternative documentation that supports the same item. Bank statements can substitute for missing receipts. Credit card statements can corroborate expenses. Third-party records from vendors or service providers can fill gaps.
The worst response is no response. If you ignore an IDR, the auditor will propose disallowing every deduction or credit that wasn't substantiated. You'll receive a 30-day letter (LTR 525) with proposed changes based entirely on the IRS's assumptions, and those assumptions never favor you.
The Deadline
IDRs come with a response deadline, typically 30 days. If you need more time, request an extension before the deadline. Auditors generally grant reasonable extensions, especially for complex document requests. But requesting an extension after the deadline has passed is much harder and may not be granted.
Get Help for Complex Audits
If the IDR is extensive or the audit involves business income, international transactions, or complex deductions, professional representation can make a significant difference. Tax professionals know what auditors are really looking for, how to present documentation effectively, and when to push back on overly broad requests.
If you've received an LTR 566, call us at (813) 229-7100. We respond to IDRs every week.