Field Audit Law and Legal Definition
Field audit is an examination of the books and records of the taxpayer by the Internal Revenue Service (IRS) to determine the accuracy of income tax return. It is conducted at the taxpayer's place of business or at the office of the individual who prepared the return.
The following is an example of a case law defining field audit:
The field audit contemplates a verification of the facts as reported in the return of the taxpayer and a complete review of the taxpayer's books for the purpose of establishing accurately and finally the facts with respect to its income. The field audit is intended to foreclose any further inquiry into the facts relative to the taxpayer's income for the year or years under audit. [Bechaud v. Wisconsin Tax Com., 235 Wis. 23 (Wis. 1940)].
