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IRS has 3 years to audit/review/recalculate your tax return and assess additional tax. 2012 tax returns are still withing the statute of limitation (from April 15, 2013 until April 15 2016 for returns filed by deadline). Unfortunately IRS can reopen the audit or start a new audit as they wish as long as it is within the statute of limitation.
That being said, a notice usually list a reason or reasons for adjustment. They need to tell you about changes they made to your return. If you look on the notice, in the top right corner there's number of the notice, usually starts with CP. What's the notice number? I can look it up what the notice is about?
Letter 3219 is notice of deficiency (also known as 90-day letter), it basically informs you about your right to appeal. If the letter doesn't provide any information about the reason IRS changed your return or why you owe 7k you don't have other option than to contact IRS directly. You have 90 days to respond. You can Call IRS Notice respond number or number/contact provided on the notice or(###) ###-#### ***** waiting time is about 30 - 45 minutes.
Once you know the reason for balance due and what changes IRS made to your return, than you will have couple of options to respond. You can agree with the changes or you can amend the return and/or send additional documentation. The reason could be unreported income, disallowed deduction or credit or mismatch of information.
If you disagree with IRS decision you can contact Taxpayer Advocate services in your state. More information here:
Let me know if you have any questions.
If it is still within statute of limitation, yes IRS can reopen the audit or audit the return for a different issue.
Regarding repetitive audits: if your return is audited for 2 consecutive years and no changes are made, and you are audited for the SAME issue again in the following year, you can appeal and/or object the audit. Which means, if your 2011 and 2012 return was audited for the same issue and it closed with no change, and now your 2013 return is audited for exactly same issue, than yes, you can object it by contacting the agent/examiner. The audit will not be automatically canceled but the examiner will have to obtain an approval to continue or cancel it.
Repetitive audits are addressed in Internal revenue Manual (IRM) 22.214.171.124.2.