[icelancer]

>> Should I be concerned that they'll try to get their $10 from me and then pile on a bunch of penalties?

No, despite their reputation, the IRS is pretty reasonable about stuff like this, at least in my experience. They're relentless if they think you owe a ton or were malicious, but they don't intentionally trump up penalties on the every day person.

[GuB-42]

I guess it makes sense. The IRS is profit-driven. The state wants to maximize the amount of money recovered minus how much it costs.

It makes more sense to go after the targets they can get the most money from. They won't bother you with your $10, it is a waste of their time compared to the thousands they can recover on larger scale, well established fraud.