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Yes, the IRS can come after your stipends. If the IRS audits you, they’ll tax all those stipends. Plus penalties, and interest. Here’s what happens: The IRS asks for proof you maintained a tax home. Lease agreement, rent receipts, shared expense agreements, housing payments, and you have none of it. They disqualify your tax home. All $48,000 in stipends become taxable income. Tax bill: around $12,000. Penalties: $2,400. Interest: $1,500. Total: $15,900. An example for you: Sarah was a travel nur
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