701—7.32 (421) Time and place of taxpayer interviews. The time and place of taxpayer interviews are to be fixed by an employee of the department and employees are to endeavor to schedule a time and place that are reasonable under the circumstances.
	 7.32(1) Time of taxpayer interviews. The department will schedule the day(s) for a taxpayer interview during a normally scheduled workday(s) of the department, during the department’s normal business hours. The department will schedule taxpayer interviews throughout the year without regard to seasonal fluctuations in the business of particular taxpayers or their representatives. The department will, however, work with taxpayers or their representatives to try to minimize any adverse effects in scheduling the date and time of a taxpayer interview.
	 7.32(2) Type of taxpayer interview. The department will determine whether a taxpayer interview will be an office interview (i.e., an interview conducted at a department office) or a field interview (i.e., an interview conducted at the taxpayer’s place of business or residence, or some other location that is not a department office) based on which form of interview will be more conducive to effective and efficient tax administration.
The department will grant a request to hold an office interview at a location other than a department office in case of a clear need, such as when it would be unreasonably difficult for the taxpayer to travel to a department office because of the taxpayer’s advanced age or infirm physical condition, or when the taxpayer’s books, records, and source documents are too cumbersome for the taxpayer to bring to a department office.
	 7.32(3) Place of taxpayer interview. The department will make an initial determination of the place for an interview, including the department region office to which an interview will be assigned, based on the address shown on the return for the tax period to be examined. Requests by taxpayers to transfer the place of interview will be resolved on a case-by-case basis, using the criteria set forth in paragraph “c” of this subrule.
	  a.   	 Office taxpayer interviews. An office interview of an individual or sole proprietorship generally is based on the residence of the individual taxpayer. An office interview of a taxpayer which is an entity generally is based on the location where the taxpayer entity’s original books, records, and source documents are maintained.
	  b.   	 Field taxpayer interviews. A field interview generally will take place at the location where the taxpayer’s original books, records, and source documents pertinent to the interview are maintained. In the case of a sole proprietorship or taxpayer entity, this usually will be the taxpayer’s principal place of business. If an interview is scheduled by the department at the taxpayer’s place of business, which is a small business and the taxpayer represents to the department in writing that conducting the interview at the place of business would essentially require the business to close or would unduly disrupt business operations, the department upon verification will change the place of interview.
	  c.   	 Requests by taxpayers to change place of interview. The department will consider, on a case-by-case basis, written requests by taxpayers or their representatives to change the place that the department has set for an interview. In considering these requests, the department will take into account the following factors:
	 (1) 	 The location of the taxpayer’s current residence;
	 (2) 	 The location of the taxpayer’s current principal place of business;
	 (3) 	 The location where the taxpayer’s books, records, and source documents are maintained;
	 (4) 	 The location at which the department can perform the interview most efficiently;
	 (5) 	 The department resources available at the location to which the taxpayer has requested a transfer; and
	 (6) 	 Other factors that indicate that conducting the interview at a particular location could pose undue inconvenience to the taxpayer.
A request by a taxpayer to transfer the place of interview generally will be granted under the following circumstances:
	  1. 	 If the current residence of the taxpayer in the case of an individual or sole proprietorship, or the location where the taxpayer’s books, records, and source documents are maintained, in case of a taxpayer entity, is closer to a different department office than the office where the interview has been scheduled, the department normally will agree to transfer the interview to the closer department office.
	  2. 	 If a taxpayer does not reside at the residence where an interview has been scheduled, the department will agree to transfer the examination to the taxpayer’s current residence.
	  3. 	 If, in the case of an individual, a sole proprietorship, or a taxpayer entity, the taxpayer’s books, records, and source documents are maintained at a location other than the location where the interview has been scheduled, the department will agree to transfer the interview to the location where the taxpayer’s books, records, and source documents are maintained.
	  4. 	 The location of the place of business of a taxpayer’s representative generally will not be considered in determining the place for an interview. However, the department in its sole discretion may determine, based on the factors described in paragraph “c” of this subrule, to transfer the place of interview to the representative’s office.
	  5. 	 If any applicable period of limitations of assessment and collection provided in the Iowa Code will expire within 13 months from the date of a taxpayer’s request to transfer the place of interview, the department may require, as a condition to the transfer, that the taxpayer agree in writing to extend the limitations period up to one year.
	  6. 	 The department is not required to transfer an interview to an office that does not have adequate resources to conduct the interview.
	  7. 	 Notwithstanding any other provision of this rule, employees of the department may decline to conduct an interview at a particular location if it appears that the possibility of physical danger may exist at that location. In these circumstances, the department may transfer an interview to a department office and take any other steps reasonably necessary to protect its employees.
	  8. 	 Nothing in this rule shall be interpreted as precluding the department from initiating the transfer of an interview if the transfer would promote the effective and efficient conduct of the interview. Should a taxpayer request that such a transfer not be made, the department will consider the request according to the principles and criteria set forth in paragraph “c” of this subrule.
	  9. 	 Regardless of where an examination takes place, the department may visit the taxpayer’s place of business or residence to establish facts that can only be established by direct visit, such as inventory or asset verification. The department generally will visit for these purposes on a normal workday of the department during the department’s normal business hours.
	 7.32(4) Audio recordings of taxpayer interviews.
	  a.   	 A taxpayer is permitted, upon advance notice to the department, to make an audio recording of any interview of the taxpayer by the department relating to the determination or collection of any tax. The recording of the interview is at the taxpayer’s own expense and must be with the taxpayer’s own equipment.
Requests by taxpayers to make audio recordings must be addressed to the department employee who is conducting the interview and must be received by no later than ten calendar days before the interview. If ten calendar days’ advance notice is not given, the department may, in its discretion, conduct the interview as scheduled or set a new date.
The department employee conducting the interview will approve the request to record the interview if:
	 (1) 	 The taxpayer (or representative) supplies the recording equipment;
	 (2) 	 The department may produce its own recording of the proceedings;
	 (3) 	 The recording takes place in a suitable location; and
	 (4) 	 All participants in the proceedings other than department personnel consent to the making of the audio recording, and all participants identify themselves and their role in the proceedings.
	  b.   	 A department employee is also authorized to record any taxpayer interview, if the taxpayer receives prior notice of the recording and is provided with a transcript or a copy of the recording upon the taxpayer’s request.
Requests by taxpayers (or their representatives) for a copy or transcript of an audio recording produced by the department must be addressed to the employee conducting the interview and must be received by the department no later than 30 calendar days after the date of the recording. Taxpayers must pay the costs of duplication or transcription.
	  c.   	 At the beginning of the recording of an interview the department employee conducting the interview must state the employee’s name, the date, the time, the place, and the purpose of the interview.
At the end of the interview, the department employee will state that the interview has been completed and that the recording has ended.
	  d.   	 When written records are presented or discussed during the interview being recorded, they must be described in sufficient detail to make the audio recording a meaningful record when matched with the other documentation contained in the case file.
This rule is intended to implement Iowa Code section 421.60.