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The Notice of Deficiency
If you are audited and cannot come to an agreement with the examining agent, the IRS will issue what is known as a Notice of Deficiency (sometimes also called the 90 Day Letter).
The Notice of Deficiency contains a calculation of the additional tax, interest and penalties the IRS believes you owe and [...]
The IRS has the legal right to audit any tax return it so chooses for any reason it chooses.
The threat of an audit is what makes most taxpayers take seriously their obligation to comply with the letter of the law.
The odds of being audited are generally very low, therefore, if you get an audit notice, [...]