There are many beliefs to what the Internal Revenue Service (IRS) does and doesn't do. However, one fact about the IRS is that they have the right to send you a legal audit notice if they feel you have committed tax fraud. If case the information provided in your tax returns is not acceptable, they may choose to take a closer look and inspect your financial records. An IRS audit is usually conducted if there is a suspicion of fraud, but there could be errors in paperwork as well. Sometimes tax audits are conducted randomly, and it is important to be prepared in case you do receive an audit notice.