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Answer: Yes.
Just because you received your refund check, don't assume that the IRS has reviewed your return and has given its blessing - whether you file electronically or with a paper return. The IRS checks for obvious errors and suspicious deductions, and it may hold up your refund check while it investigates, but simply receiving a refund doesn't mean that you will not be audited.
In fact, audit determination is made long after the refund check is issued. After your return has been filed and you've received your refund, your tax return goes through another computer check, comparing it to a computer model. The return then receives a DIF (Discrimination Information Function) score.
The IRS calculates the DIF score with a very closely guarded formula. Returns with high DIF scores are then pulled and reviewed by skilled and experienced IRS agents to determine which ones have the greatest potential for yielding additional taxes, interest, and penalties.
Generally, the IRS has three years from the time a return is filed to perform an audit. While the IRS likes to begin the audit process three to four months after the tax return filing deadline, many returns aren't audited until 18 or even 24 months later.
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