The number three sin is not to respond to an IRS notice. Ignoring IRS letters can only get you into more potential trouble. Number two is failure to report income. The IRS knows about most income from W-2s and 1099s so not reporting income will get you automatic penalties, interest, and taxes.
They can also audit your bank deposits and review your standard of living to look for unreported income. The number one greatest IRS sin is to not file a tax return. The IRS can impose a 25% penalty on unpaid taxes and the statute of limitations remains open forever until you file.
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