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Originally Posted by charlestudor2005
The IRS has formulas it uses for industries that have no/little paper trail.
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Charles, That formula is this: If you file any sort of taxes, own or rent property, purchase/insure an automobile, have healthcare bills or go to a public school or university, they know you're spending money. Just by having a social security number, as all legal citizens do, you let the government know you're living off of something, somehow.
I'm very aware.
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Let's be clear, the IRS prefers to assess, levy and get you on a payment plan. It takes egregious conduct on your part in order for the IRS to refer the case for criminal prosecution. Everyone hates these cases in the criminal context. So, you'll likely be placed on a payment plan. It used to be (I don't know the current IRS policy) that at the time you agreed to the payment plan, you could reduce your tax liability IF you stayed on the payment plan.
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I have a friend thats going through this right now.