Risk of audits or penalties from the IRS unfortunately aren’t based on normal ideas of right and wrong. Clients will often say “I haven’t done anything wrong”. But there are still risks with the IRS for this person, because wrongdoing to the IRS is subjective. Intent to do wrong isn’t really part of the analysis when it comes to tax errors. Ignorance is rarely a solid defense. Our recommendation is to remain open and be realistic about IRS risks we identify.