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Assume a person earning $120k makes $40k charitable contributions and has all proof of contributions.

IRS suspecting high charity, sends out an audit. The person has relocated and never receives an audit.

What would IRS do.

  1. Civil or criminal penalty ? ie is there possibility of issuing arrest warrant ?

  2. Figure out new address and send same audit next year to new address of filing?

closed as unclear what you're asking by Tim Lymington supports Monica, feetwet Apr 9 '18 at 1:13

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    It kind of depends on how the mail service handles it. If they put in a change of address, it might get forwarded to the new address anyways (unless it's explicitly sent with a do not forward stamp). Otherwise, the letter carrier should return it to the IRS with a no longer at address sticker attached, so they know the person moved and can seek out new address info. They'll likely be able to find that information long before next year's filing (e.g. it would get updated on credit reports after changing it with banks). There are lots of ways this could play out. – animuson Apr 7 '18 at 14:38
  • Why would the IRS suspect a city-ship from the Halo series? – JAB Apr 7 '18 at 16:18
  • What they're likely to do is beyond the scope of this site. We could answer the question of they're legally allowed to do. – Nate Eldredge Apr 7 '18 at 19:25
  • I'm voting to close this question as off-topic because "what would someone do?" is not a legal question. "What are the IRSs legal options here?" would be on topic, but probably wouldn't be helpful. – Tim Lymington supports Monica Apr 8 '18 at 20:12
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    @feetwet "IRS suspecting high charity, sends out an audit." in this context simply means that the IRS would audit the return because the charitable deduction was suspiciously high on this return, and "never receives an audit." in this context clearly means "the taxpayer didn't receive notice that the taxpayer was being audited." Sounds like the questioner may not be a native English speaker. – ohwilleke Apr 11 '18 at 5:28
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The IRS would disallow the charitable deduction, recalculate the tax due and issue a notice of deficiency demanding payment of the unpaid taxes. If the taxes were not paid, the IRS would impose a tax lien and seize assets such as bank accounts and real estate in the name of the taxpayer issued the notice of deficiency. There could be a substantial underpayment of tax penalty and interest included in the deficiency notice as well.

There would not be criminal penalties.

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