An IRS field audit is the most thorough form of examination: a revenue agent meets you at your business, your home or your representative's office and reviews your books and records in depth, often across more than one tax year. Because the scope is broad and interviews are part of the process, many taxpayers bring in a representative from the start.
If you have received an examination appointment letter, call (415) 754-0115 to schedule a free consultation before the first meeting, or reach us through the contact page.
How a field examination differs from other audits
A correspondence audit asks for documents by mail. An office audit is an appointment at an IRS office on a handful of issues. A field examination is conducted by a revenue agent, an IRS employee trained in accounting who usually handles business returns, rental activity, larger or complex individual returns and multi-year issues. The agent will typically want to understand how your business works, how you record income, and how your books tie to the return.
The opening letter and what comes next
A field examination starts with a letter that proposes an appointment and often includes an Information Document Request, IRS Form 4564, listing the records the agent wants. Many letters also enclose Publication 1, which explains your rights as a taxpayer.
Typical stages
- Initial interview. The agent asks about the business, bookkeeping, bank accounts, and sometimes personal living expenses.
- Tour of the business. When the audit is at your place of business, the agent may ask to see how operations run.
- Records review. The agent tests income and expenses, often by comparing bank deposits to reported receipts.
- Follow-up requests. Further document requests narrow in on items the agent questions.
- Findings. The agent explains proposed changes, and you can agree, provide more information, or disagree and seek review.
Your rights during an IRS field audit
The law and IRS procedures give you meaningful protections. Knowing them helps you stay calm and in control.
The right to representation
You may be represented by an attorney, a CPA or an enrolled agent. Once a power of attorney is on file, your representative can generally attend meetings in your place. The IRS can require you to appear personally in limited circumstances, such as through an administrative summons.
The right to pause an interview
If you are being interviewed on your own and you decide you want to consult a representative, you can generally ask that the interview be suspended so you can do so. This comes from federal law and does not apply in every situation, but it is an important safeguard.
The right to a reasonable time and place
The IRS tries to schedule meetings at a reasonable time and place. You can ask that the examination be held at your representative's office rather than your home or business, and the IRS will consider the request.
Why the location matters
An agent at your business sees your inventory, your staff and your daily operations. An agent at your home may notice lifestyle details. Neither is improper, but a meeting at a representative's office keeps the examination focused on documents rather than observations.
The right to know the scope
You can ask which years and issues are under examination. Information Document Requests should be tied to those issues, and a representative can push back on requests that stray too far.
Preparing for the first meeting with the agent
The opening interview sets the tone for the whole examination, so preparation matters. Before the appointment, reconcile your bank deposits to the gross receipts on the return, pull the general ledger and the documents listed in the Information Document Request, and make sure you understand every large or unusual item. Decide in advance who will attend. If you will be present, practice answering questions directly and without speculation. Bring only the records requested, organized by issue, and keep a copy log of everything handed over. Revenue agents notice when records are orderly, and a well-prepared first meeting often leads to fewer follow-up requests.
Extensions of the statute of limitations
The IRS generally has three years from filing to assess additional tax. During a long field examination, the agent may ask you to sign a consent extending that period. Refusing is possible, but the IRS may then issue a notice of deficiency on the information it has. Consents can sometimes be limited to specific issues. This is a decision to make with counsel, not on the spot.
Why representation is common in field exams
Field audits involve interviews, broad record requests and a trained accountant on the other side. A representative can prepare the records so they tell a clear story, answer technical questions, and prevent casual remarks from expanding the examination. The Somal Law Firm, led by attorney Bob Somal, Esq., represents individuals and small businesses in Pleasanton, the Tri-Valley, and Alameda and Contra Costa Counties in IRS audits, appeals and disputes. For a broader overview, see our guide to IRS audit help in California.
If you disagree with the agent's findings, you can ask to meet with the agent's manager and then protest to the IRS Independent Office of Appeals. Many disputes are resolved at that stage without going to court.
Frequently asked questions
Does a field audit mean the IRS suspects fraud?
No. Most field examinations are civil reviews of whether the return is correct. If an agent sees signs of fraud, the tone and process can change, and that is a moment to have counsel involved immediately.
How long does a field audit take?
Field examinations commonly last months, and sometimes longer when several years or entities are involved. Well-organized responses tend to keep the timeline shorter.
Can I record the meeting?
Taxpayers can generally audio-record an interview if they give the IRS advance notice, and the IRS may then make its own recording. Ask your representative whether it makes sense in your case.
When you get in touch, the firm will look at your appointment letter and document request, then schedule a free consultation to prepare you for what comes next. Call (415) 754-0115 first, or use the contact form.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.