Re: Really Stupid IRA Question
IRS usually is about 18 months behind on auditing/reviewing returns. However, if they find you make an IRA deduction that is not borne out at years end by an IRS Form 5498 submitted by the institution you made the deposit to then I would expect you will get a letter from them to provide evidence to substantiate the deduction. If you cannot they will then bill you for the taxes due PLUS interest and maybe even some PENALTY. Of course they could always allege FRAUD on your part and actually do a full AUDIT with possible criminal charges. It sure is not worth in, IMHO, under any circumstances to try something like that, especially for the little you could save on taxes.
Vietnam Veteran, CW4 USA, Retired 1979