The first reaction by most taxpayers when they find out they are being audited by the IRS is crippling fear. An audit occurs when the IRS has reason to believe that the tax you paid is not what should have been collected. The IRS wants to investigate how you calculated your tax due for the year. If you have received a letter in the mail from the IRS, take a deep breath and don’t immediately panic. You might not even have to meet in person with the IRS, depending on the type of audit.