Types of IRS Audits — Correspondence, Office, and Field Examinations — Definition Glossary

Defined by Sarah Mitchell, CPA | Reviewed by: James Okafor, EA | Updated May 2026

Full Definition

IRS audits fall into three categories. Correspondence Audits: the most common type — conducted entirely by mail, typically requesting documentation for specific line items on a return (charitable deductions, business expenses, home office). Correspondence audits rarely lead to criminal referrals and are often resolved by submitting supporting documentation. Office Audits: the taxpayer meets with an IRS auditor at an IRS office, covering broader issues than correspondence audits. Office audits for businesses often include income verification, expense substantiation, and basis calculations. Field Audits: IRS agents conduct the examination at the taxpayer’s business location. Field audits are the most comprehensive and are typically reserved for complex returns, large businesses, or situations where the IRS suspects significant underreporting. Employment tax audits (Form 941) are typically field audits that examine payroll records, worker classification, and fringe benefit reporting. A field audit of employment taxes can result in a large 941 assessment plus personal TFRP against business owners.

Why This Matters for Businesses With Tax Debt

Understanding Types of IRS Audits — Correspondence, Office, and Field Examinations is essential for any business owner navigating IRS enforcement or business tax debt. This term directly affects the resolution options available — including whether tax debt financing is a viable solution, how federal tax liens affect the business, and what the IRS can legally collect.

Related Tax Terms

• IRS Revenue Officer
• Trust Fund Recovery Penalty
• IRS Audit Reconsideration

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Sources: IRS.gov; Internal Revenue Code (IRC); IRS Publications 1, 594, 1660, 594. Tax Funds is a financing marketplace — not a lender, CPA firm, or law firm. Content is for informational purposes only and does not constitute tax or legal advice.