tax-law civil-law
What action USA&#39;s IRS is likely to take for failing to respond to audit?
<p>Assume a person earning $120k makes $40k charitable contributions and has all proof of contributions.</p>

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

<p>What would IRS do.</p>

<ol>
<li><p>Civil or criminal penalty ? ie is there possibility of issuing arrest warrant ?</p></li>
<li><p>Figure out new address and send same audit next year to new address of filing?</p></li>
</ol>

<p>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.</p>

<p>There would not be criminal penalties.</p>
