What This Letter Means

Letter 566-D, Initial Contact - Request Additional Information, starts an IRS examination of a refund claim. Most often the claim is an amended return, Form 1040-X. The IRS is not paying the refund yet. It wants proof first.

Common triggers include amended returns that claim the Earned Income Tax Credit for the first time or in a larger amount, often with changes to Schedule C self-employment income or expenses. Claims for the Child Tax Credit, Additional Child Tax Credit, or Credit for Other Dependents are also examined this way.

The letter comes with a form listing what to send. For EITC claims that is usually a Form 886-H series form. For child tax credit claims it may be Form 14815. Examiners also review related items such as filing status and dependents.

What to Do

  • Read the enclosed form and send every item it asks for.
  • Send copies, not originals. Include a copy of the letter.
  • Answer every issue listed. A partial response gets a partial result.
  • Keep proof of what you sent and when.

What Happens Next

  • If your documents fully support the claim, the IRS allows it and sends Letter 570.
  • If you don't respond, or your documents don't fully support the claim, the IRS sends Letter 569-B proposing to disallow all or part of it. That package includes Form 3363 and Form 2297.
  • If the IRS also questions amounts on your original return, it can propose additional tax on Form 4549.

If You Disagree

Be careful with Form 2297. Signing it waives the formal notice of claim disallowance and starts the two-year period to file a refund suit. Don't sign it until you understand what you are giving up.

Deadlines

Use the response date in your letter. The IRS holds the case open while it waits, then moves forward with or without your documents.

If the IRS is examining your amended return and you want help proving your claim, call us at (813) 229-7100.