The Field Audit
That is the scenario that most people associate with an audit — when somebody from the IRS shows up at the door of your home or office.
Field examinations, or field audits, are used for the most complex issues. The method of the audit is governed by the difficulty of the issues. Field audits are defined as in-person audits conducted at the organization’s location, the organization’s representative office, and/or at the local IRS office.
There are two types of field audits:
- General Program – a type of field exam conducted by a revenue agent at the organization’s location.
- Team Examination Program – defined as a type of exam involving a team of examiners; it is more specific to large, complex organizations.
The examining agent will function as a revenue agent — within this context not all revenue agents are considered accountants — who may be an accountant who works for the Internal Revenue Service. Unlike other types of examinations, revenue agents spend considerable time reviewing the taxpayer’s return.
The revenue agent examines and audits financial records of individuals, businesses, and corporations to ensure tax liabilities are met. The revenue agent reviews the taxpayer’s books and records at the place of business or warehousing location. In addition, the revenue agent reviews the taxpayer’s return and related supporting documentation.
The agent may be assisted by an engineer agent, who supports the mission of the IRS by providing “professional and accurate development of issues and efficient and effective resolutions to more significant and complex engineering and valuation issues.
“Engineers provide expertise to issues encountered in all types of tax returns”. The engineer agent plays a key role in supporting all IRS organizations that provide for the examination of taxpayer returns.