You will not be saving yourself trouble in the long run. You will actually be making your representation more difficult and the professional fees to lay out a proper representation on your behalf will be higher. If you are contacted by the I.R.S. you need representation. Don't be lulled into complacency. The longer you procrastinate, the worse it will get.
Taxpayers have numerous options available to their defense at the initiation of an audit inquiry.
As the doors close you begin digging a deep hole that will be more difficult to crawl out of. The costs to you in taxes and penalties and in professional fees rise as each door closes. Most trader status related audits come about because the definition of what a trader is, is not clearly understood. Reduce the amount of additional taxes you might owe and the emotional distress normally associated with an IRS audit. Insurance underwritten by Lloyds of London.