Correspondence, Office, and Field Examinations: How IRS Audit Procedures Differ

The IRS uses different examination formats depending on the return, issues, records, taxpayer, and anticipated complexity. The format affects how information is requested and discussed, but none of the labels guarantees a particular outcome or limits the IRS from expanding the examination when supported by the facts.

Correspondence Examinations

A correspondence examination is generally conducted through notices, document requests, and written responses. These examinations often involve limited issues that can be substantiated with records, but the taxpayer still must read the notice carefully, organize the response by issue, retain proof of submission, and preserve appeal or petition deadlines. Sending excessive, unexplained records can be as unhelpful as sending too little.

Office Examinations

An office examination generally involves an appointment with a tax compliance officer at an IRS office or through another arranged format. It may cover several identified return items and can require an interview as well as records. The appointment notice and information document request should be reviewed together so the taxpayer understands both the issues and the requested evidence.

Field Examinations

Field examinations are generally conducted by revenue agents and may occur at the taxpayer's business, representative's office, IRS office, or virtually as arranged. They often involve business returns, books and records, internal controls, related entities, balance-sheet items, shareholder or partner issues, and interviews. The initial scope can expand to additional issues or years when authorized by IRS procedures and supported by the examination.

The Same Core Protections Still Matter

Regardless of format, confirm the examiner's identity, tax periods, issues, response dates, assessment statute, prior notices, and representation authorization. Answer the request presented, preserve privilege where applicable, avoid guessing, correct known errors appropriately, and keep a complete copy of every submission and conversation note.

Proposed adjustments generally come with administrative and judicial review procedures, but the available path and deadline depend on the notice and case stage. This article provides general federal tax information; the actual appointment letter, IDR, and account history control.