what happens if you have zero receipt for your expenses?

[libtard]

Hi guys

imagine the following scenario:
every year your tax returns indicate 90% of the money that you received was spent in expenses (example: $100k came into account, your profit is $10k)
and you get audited
you have no receipts for any of the expenses
no money left your bank account
there is zero evidence that you had any of those expenses

my accountant told me you just say "I dont have receipts" and irs will charge you whatever you would have owed plus penalty plus interest
it would not turn into a criminal matter
he also told me they can audit the past 3 years only. anything before that you are off the hook.

1) is it true that it would not be a criminal matter?
2) is it true that they would charge you for 3 years only? I am reading on some forums they can go back to 6 (or 10?) if fraud is involved. how do you know if fraud was involved?
3) how much would be the penalty in such a case? 25% or 75%?

 

[Sols]

1) is it true that it would not be a criminal matter?

Not right away. But it can become a criminal matter later, for example if you've also engaged in fraud, wire fraud, money laundering, and other more serious crimes.

2) is it true that they would charge you for 3 years only? I am reading on some forums they can go back to 6 (or 10?) if fraud is involved. how do you know if fraud was involved?

They can go back more than three years in some cases, such as fraud.

It's up to IRS to determine if it's fraud or negligence. If you disagree with their determination, I believe there is an appeal process. If there isn't, you can try taking them to court.

3) how much would be the penalty in such a case? 25% or 75%?

Depends on what type of penalty you're getting. If it's for negligence, it's usually 20%. If it's for fraud, it goes much higher.

 

[cuno]

In most EU countries, you can go back 5-10 years, and if you don't have any receipts for your expenses, there is nothing you can deduct, meaning you will be fully taxed on ALL your income.

Furthermore, if you lack receipts for your income, you risk being criminalized in 2024/2025, as it is no longer legal to receive money without proper documentation.

You will immediately be labeled as a tax evader and a terrorist, thanks to the EU, OECD, and the USA's wet dreams of turning us all into clowns and slaves to our societies.