Based on the time‐domain integral equation, we derive expressions for the effect of an anomalous body close to the receiver or close to the transmitter on transient electromagnetic measurements. Similar to magnetotellurics, the distortion of electric fields at late times can be described by a constant distortion tensor relating the secondary electric field to the primary field components that would be obtained in the absence of the body. The distortion of a single electric field transient is a static shift only for particular configurations over a layered half‐space. In the general case, the perturbation is time dependent because the direction of the total electric field vector varies with time. The theory nicely explains spatial variations in electric field transients measured during a high‐redundancy long‐offset transient electromagnetics (LOTEM) survey over an underground gas storage site. An inversion example with synthetic data illustrates how distortion can be corrected. The elements of the distortion tensor are determined simultaneously with the model parameters. Ambiguity is reduced by a regularization of the distortion parameters. In the example, the background model is recovered well, even for the difficult case where only one transmitter is used. The distortion of the magnetic field time derivatives caused by bodies close to the receiver is proportional to the time derivative of the primary electric step response. The distortion is generally not limited to early times and cannot be neglected in general. Transmitter overprint effects resulting in static shifts of vertical magnetic field time derivatives may also be understood from the theory.
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