IRS Notice CP566: What It Means and How to Respond

If you’ve applied for an Individual Taxpayer Identification Number (ITIN) and received an IRS Notice CP566, you need to understand its implications and the necessary steps to address it promptly. This notice indicates that the IRS requires additional information to process your ITIN application.

What is IRS Notice CP566?

IRS Notice CP566 is a communication from the Internal Revenue Service informing you that your ITIN application is incomplete or contains errors. The IRS needs more information or correct documentation to proceed with your application.

Why Did You Receive This Notice?

You received Notice CP566 because:

• Incomplete Application: Some sections of your Form W-7, Application for IRS Individual Taxpayer Identification Number, were not filled out correctly or were left blank.
• Incorrect or Insufficient Documentation: The supporting documents you provided were either incorrect, insufficient, or did not meet the IRS criteria.

Common Reasons for Receiving Notice CP566

Several factors can lead to the issuance of a CP566 notice:

• Invalid Medical or School Records: For dependents, the medical or school records provided might not meet the IRS’s specific requirements. For instance, medical records are acceptable for dependents under six years old and must be dated within 12 months of the application. School records are valid for dependents under 18 and should pertain to a school term ending within 12 months of the application.
• Expired Documents: The documents submitted might have expired or are no longer valid.
• Non-Certified Copies: If you sent copies of documents, they must be certified by the issuing agency. The IRS does not accept notarized copies.

Steps to Take After Receiving Notice CP566

1. Review the Notice Carefully: Understand exactly what information or documentation the IRS requires. The notice will specify the missing or incorrect items.
2. Gather the Required Documents: Collect the necessary documents that meet the IRS standards. Ensure they are current, valid, and, if copies, properly certified by the issuing agency.
3. Complete the Response Form: Fill out the response form included with your notice. Ensure all information is accurate and matches the supporting documents.
4. Mail Your Response Promptly: You have 45 days from the date on the notice to reply. Send your response form and the required documents to the address provided in the notice. It’s advisable to use a mailing method that confirms delivery.

What Are the Consequences of Not Responding to the Notice?

Failing to respond within the 45-day window will result in the IRS rejecting your ITIN application. If this happens, you’ll need to submit a new application with all the correct information and documentation.

Impact on Your Tax Return

If you submit a tax return along with your ITIN application, the IRS will process your return without an ITIN if your application is rejected. However, to receive any refunds or claim certain tax benefits, you’ll need to reapply for an ITIN and attach a copy of the return to your new application.

Tips to Avoid Future Issues

• Double-Check Eligibility: Ensure you’re not eligible for a Social Security Number (SSN) before applying for an ITIN. The IRS issues ITINs to individuals who are not eligible for SSNs but have a tax filing requirement.
• Use Certified Acceptance Agents (CAAs): CAAs can assist with the application process to ensure all forms and documents meet IRS requirements,  potentially reducing the chances of receiving a CP566 notice.
• Stay Informed: Regularly check the IRS website or consult with a tax professional to stay updated on any changes to ITIN application procedures or documentation requirements.

Need Help Responding to IRS Notice CP566?

If you’re unsure about how to fix the issues listed in your notice, our tax experts at Tax Samaritan can review your application and ensure everything meets IRS requirements. We can help you avoid further delays and improve your chances of approval.

Acting quickly and submitting the correct documents will resolve the notice without complications. If you have questions or need assistance with your ITIN application, contact us today.