LETTER 2566

LETTER 2566 is a notice sent by the Internal Revenue Service (IRS) to taxpayers who have not filed their tax return for a particular year. The IRS uses income information reported to them by employers, banks, and other payers to compute the taxpayer’s tax, penalties, and interest.

There are a few reasons why you might receive Letter 2566:

• You forgot to file your tax return.
• You didn’t have enough money to pay your taxes, so you didn’t file.
• You didn’t think you had to file a tax return.
• You were unable to file your tax return on time due to a personal or financial emergency.

You have 30 days from the date of the letter to respond to the IRS. You have four options:

1. File your tax return. This is the best option, as it will allow you to claim all of the exemptions, deductions, and credits that you are entitled to.
2. Sign and return the “Consent to Assessment and Collection” form. This means that you agree to the IRS’s proposed assessment.
3. Write a letter to the IRS explaining why you believe you are not required to file a tax return.
4. Appeal the proposed assessment.

If you do not respond to Letter 2566 within 30 days, the IRS will assess the amount of tax, penalties, and interest shown in their computation.

The best way to avoid receiving Letter 2566 is to file your tax return on time and pay your taxes in full. If you can’t afford to pay your taxes in full, you can request a payment plan from the IRS.

Here are some other tips for avoiding Letter 2566:

• Mark your calendar with the tax filing deadline.
• Gather all of your tax documents early in the tax season.
• File your tax return electronically. This is the fastest and most accurate way to file.
• If you have any questions about your tax return, contact a tax professional.

If you do receive Letter 2566, don’t panic. There are steps you can take to resolve the issue. Respond to the IRS within 30 days and explain your situation. If you owe taxes, you can request a payment plan.