Taxpayer's Dread is a term used to describe the fear and anxiety that taxpayers experience when they are subject to an AUDIT by the Internal Revenue Service (IRS). An AUDIT is a process in which the IRS reviews a taxpayer's financial records to ensure that they have reported their income and deductions accurately. Taxpayers dread audits because they can be time-consuming and costly, and can result in penalties or even criminal charges if discrepancies are found.