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Sure, if after the audit they find you owe money.
Yes, and the IRS lists various reasons at the link below (irrespective of whether you have Audit Defense).
Re: Can the irs take my refund even though I have audit defense
Of course the IRS can seize your federal tax refund for a variety of reasons. Unpaid back taxes, unpaid debts, etc.
Having Audit Defense does Not preclude the IRS from taking a tax refund. But depending on the reason Audit Defense may be able to help you if you disagree with the actions taken by the IRS.
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