Possibly. Even if you do not believe you did anything improper, any mistake the audit uncovers could potentially result in serious consequences. Therefore, you should consult with a criminal lawyer who handles tax cases who can talk with you and provide advice and guidance. It is also important to work with an experienced Certified Public Accountant that has worked with audits and criminal cases.  Tax cases are serious and complex. Working with accountants and criminal defense lawyers who understand these types of cases will be beneficial for you.