The process is pretty simple, so here's the bottom line.
Trump says that he gets audited every year. If the IRS finds discrepancies, they will notify his accountants. The accountants and lawyers have two options. They can dispute it with the IRS and make their case, or they can simply pay it plus the fine. Most people don't go to jail unless it was obvious that tax evasion occurred and they can't pay up. If he is audited every year, these discrepancies would come to light in short order and it would be rectified. If Trumps accountants are aware that they are being audited every year, it wouldn't only be difficult to get away with, but it would be extremely stupid to try to evade paying taxes. I'm pretty confident that Trump doesn't hire stupid accountants. All of this is between the IRS and the tax payer.
When my accountant did my 2019 taxes, they accidently overstated how much I paid in estimated taxes. I didn't have to pay 4th quarter because I had already overpaid as far as Safe Harbor is concerned. However, it was on the schedule and someone plugged in the total that was scheduled instead of what I told them I actually paid. In August I got a very nice letter from the IRS stating that we incorrectly reported our estimated taxes. This was not found in an audit, it was just found during the regular process. In addition to the money owed, I got hit with an $850.00 fine. Ultimately that's my fault for not catching it. Live and learn. I paid the back taxes and the fine and we have moved on. End of story and no one went to jail.
