Notice Type
A CP2566 notice means the IRS has no record of a return being filed for a given year, and based on income reported to them by employers or other payers, it has calculated a proposed tax, penalty, and interest amount on your behalf. This is a proposed assessment, not a final bill, and it's often based on limited information since the IRS doesn't know about deductions or credits you may be entitled to, and this type of notice often fits within our standard $45 notice review as a starting point, since it usually begins with understanding how the proposed amount was calculated.
Before You Respond
A CP2566 means the IRS is prepared to assess a tax amount without your input, so it's worth attention rather than being set aside. Check the response date printed on your actual notice — CP2566 notices state a specific date by which to file the actual return or respond, and that date is what determines your timeline, not a general rule of thumb. If no return or response is provided by that date, the IRS can finalize the proposed assessment, which is often higher than what a properly filed return would show since it doesn't account for deductions or credits. Responding before that date, ideally with an actual return, generally leads to a more accurate result.
Know Before You Act
Before assuming the proposed amount is accurate or letting the deadline pass, it helps to understand that the IRS's calculation is based only on the income information it received from third parties, without any of the deductions, credits, or filing status adjustments a full return would include. The proposed amount may be substantially higher than what you'd actually owe with a properly filed return. Knowing this is what determines whether filing an actual return, rather than accepting the proposed figure, is the better path forward.
Start with a secure notice upload and a free IRS notice summary. If you want organized next steps, optional $45 Review & Guidance is a one-time purchase with no subscription. It may include an Action Plan, records to gather, response options, and case questions. When the information and supporting documents provided support a written IRS response, you can use the action steps provided to prepare it yourself or unlock the option for Think Twice Tax to draft a personalized response letter for you.