Form 4564, not Letter 4564, is the IRS Information Document Request. Examiners use it to request records, explanations, and other information needed during an examination.
Field Audit IDRs Are More Detailed
Field audit IDRs tend to be more extensive than correspondence audit requests. A Revenue Agent examining a business may request general ledger and chart of accounts, all bank statements for business and personal accounts, cancelled checks over a certain amount, invoices and contracts for major transactions, depreciation schedules with purchase documentation, payroll records including Forms 941 and W-2, accounts receivable and payable aging reports, corporate minutes and resolutions, and loan documents and agreements.
The scope reflects the comprehensive nature of field examinations. The Revenue Agent is looking at the entire financial picture, not just specific line items.
IDR Enforcement
Revenue Agents follow a formal IDR enforcement process. The initial IDR sets a deadline. If you don't respond, the agent issues a delinquency notice. If you still don't respond, the agent issues a pre-summons letter. If that fails, the agent can issue an IRS summons compelling production of the records.
A summons is legally enforceable. Failure to comply can result in a federal court order requiring compliance, and contempt of court sanctions for continued non-compliance. Don't let an IDR reach the summons stage.
Working With the Revenue Agent
Field audits work best when there's professional communication between your representative and the Revenue Agent. Negotiate reasonable deadlines for document production. Provide organized, indexed documentation. Address questions promptly. The tone of the audit is often set by the quality of the initial IDR response.
If you've received Form 4564 in an examination, call us at (813) 229-7100. We can help scope and organize the response.