Will this trigger an IRS audit?

In short — no, the 12-411 process does not trigger IRS audits, and we have never had a single client audited after going through this process.

To understand why, it’s important to know what actually triggers an IRS audit:

1. You declare your income as taxable By doing so, you grant the IRS legal jurisdiction over your earnings. This opens the door for scrutiny and enforcement.

2. You claim questionable deductions or credits Most audits are triggered when the IRS sees excessive or inconsistent write-offs, or when the math doesn’t align with what you reporte

3. You create a financial incentive for the IRS Before auditing anyone, the IRS does a cost-benefit analysis. They only spend time and resources if there’s a chance to recover money

Now here’s why the 12-411 process doesn’t raise red flags:

• Your income is lawfully reclassified as non-taxable under 12 U.S.C. § 411

• You’re not claiming shady deductions or trying to “game the system”

• You’re filing a fully compliant 1040 — you’re just doing so under a different lawful classification

• There is no financial incentive for the IRS to spend hours auditing someone from whom they can collect zero dollars

If the IRS were to consider reviewing your file, their internal evaluation would go something like this:

• “Does this person owe us money?” → No

• “Will we recover funds from this audit?” → No

• “Is it worth the time, cost, and staffing resources?” → Absolutely not

Their time is much better spent going after taxpayers not using the 12-411 process, who are declaring all of their income as taxable and may have made mistakes worth collecting on.

That said, no system can guarantee a 0% chance of audit. But given the lack of financial incentive and the lawfulness of the process, the probability is extremely low.

To date, not a single Wealth Guaranteed client has ever been audited — and we do not expect that to change.