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I mean without knowing what I did it's hard to say much on the topic, but unless we're talking about random and arbitrary tyranny in which the IRS makes an accounting error and insists that they're correct, and I somehow lose in court, I can't imagine owing more on taxes than I have in assets in the first place... You're really going to have to clarify how the average man can be fucked over by the IRS just like that.
The average man can't (though there are plenty of ways the average man can lose everything). Basically you can receive stock that you can't sell because of various securities rules, and that stock can drop precipitously before you are able to sell it. You owe the full tax on the value of the stock you received at the time you received it. The IRS now owns you for 10 years, and determines how much you're able to keep. If you're lucky you can make enough and keep enough under these circumstances to put a roof over your head. If you're not, the cash economy and homelessness is for you. You can beg the court for mercy but as @sun demonstrates, nobody has any sympathy for a once-well-off man.
Not like you'd believe me, but the key traits here are "a once well-off person who decided to fuck around with the Labyrinth that is modern finance and found out that the Minotaur lives there".
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