What if the IRS audits me?

The 12-411 process is fully compliant with federal law, and actually lowers your probability of being audited. The IRS is a for profit organization, they know full and well which audits will result in potential gain, and which audits will bear no fruit. Since you have no taxable income, there is not really much of a financial incentive for the IRS to look further into your records. The IRS knows what we are doing and receives thousands of returns like this ever year, so they won't want to waste their time and resources chasing after well informed living men and women filing with the 12-411 process who know that the law favors them. They have a better financial incentive to go after someone with a similar financial profile to yours, who files a standard statutory tax return & knowingly declares their income as taxable.