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People get away with things like this because the IRS is very busy and overlooks a lot of things That doesn't mean this is actually how the rules work If a human auditor actually saw someone doing this, they would be in big trouble and at minimum have to hire a lawyer
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That's very true. The IRS isn't going to audit everyone who fudges on their tax returns. There are certain red flags that can trigger an audit. The repercussions of doing something like in the OP also can depend on the auditor.
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