In an IRS audit, the burden of proof is on you. That means they can make a claim on your wealth, and it's on you to prove otherwise. If your transaction history is complex then it becomes even harder to prove. After the audit is over and the IRS determines that you owe them (typically an arbitrarily large amount) and you don't pay them then you go to jail.
If it wasnt for slaves like you paying them they wouldnt have the resources to put you in jail
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You are right. They would just execute you. It's cheaper.
Probably by lowering the standards of the prison system more than it already is.