Yes. There are a few different types. The least intrusive is the one you never know about. Their computer system will generate a report. A live person will pull your tax return and determine whether and how they will proceed from there. If they determine that no further action is required, then you will not be notified of anything.
The second type would be the correspondence audit. This is where they send you a letter asking for information or proposing to deny certain deductions, etc. Many times, these are computer generated letters, and are difficult to interpret. Statistically, the computer generated letters are wrong about 70% of the time.
The third and most feared type of audit is the face-to-face audit. You will receive a letter from the IRS detailing what information they expect to review at the meeting. You or your representative will meet with a Revenue Agent for an “examination.” Prior to the scheduled meeting, you will need to gather all of the information they are requesting. The more organized you are, the better it will most likely go. Depending on the particulars, you may or may not want to have the meeting at your home or office. If you suspect things could get ugly for you, then you should probably find some professional help. Of course, don’t to get a free T-shirt at the end.