The IRS has not indicated any problem here.
The City of New York, however, is chasing this guy for federal taxes.
That’s not how federal tax collection works, and it is a good indication that they have absolutely nothing to charge him with.
Federal and state taxes.
If New Yor state and local taxes are based on a person's income reported on federal returns then if you underreport on federal taxes you also underreport on state and local taxes.