An IRS CP2566 notice can be terrifying—especially when it says the IRS calculated a six-figure tax bill for a return you never filed. But is that proposed amount final? What happens if you cannot file by the deadline printed on the notice? In this video, Logan Allec, CPA, explains: • What an IRS CP2566 notice means • How the IRS creates a Substitute for Return (SFR) • Why the proposed tax bill may be drastically overstated • How missing stock or cryptocurrency cost basis can create a massive proposed balance • Whether filing an accurate original return can replace the IRS’s calculation • What happens if you miss the CP2566 response deadline • How to obtain tax transcripts when you cannot access your IRS online account or locate a W-2 If the IRS only sees gross stock or cryptocurrency proceeds, it may calculate tax without giving you credit for what you originally paid. The same problem can occur when the IRS sees self-employment income but does not account for legitimate business ex...