An IRS audit is not an accusation. It is a review. But the examiner can summon records and testimony under IRC 7602, and what you say goes in the file.
Types of audits
Correspondence audits happen by mail. Office audits happen at an IRS office. Field audits happen at your home or business. Each one needs a different level of preparation.
Your rights in the interview
IRC 7521 lets you make an audio recording of an in-person interview with advance notice, and requires the employee to suspend the interview if you clearly say you want to consult a representative, except in an interview initiated by summons.
When an audit is more than an audit
If the returns under review contain problems you know were not mistakes, you are in what lawyers call an eggshell audit. Talk to a lawyer before the next meeting.
You can disagree
Proposed adjustments can be appealed, and a notice of deficiency can be petitioned to the Tax Court. See Tax Court.
General information only, not legal advice. Reading this page does not create an attorney-client relationship. Laws and IRS procedures change; the sources cited were reviewed on the date shown above.