To: Neocon who wrote (15566 ) 9/4/2001 5:22:43 PM From: The Philosopher Read Replies (2) | Respond to of 59480 Only 5% of returns are audited each year. Most compliance is voluntary Nonsense. First, if you don't file at all, and there are ANY information returns out about you (W-2s, 1099s, etc.) they come after you. That's basically 100% audit for non-filers. Don't even try to tell me that if only 5% of non-filers were gone after, the compliance level would be what it is now. Second, if you file but don't include some income from an information return, again their computers will usually catch it. Another basically 100% audit. So to fall within the 5%, you have to file and report all income from information returns. For the bulk of Americans, that's basically all the income they have. Really, only a smallish percentage -- I'm guessing, but maybe 20% at max? -- of filers have substantial income which is not reported on information returns, or have large enough incomes to make an audit worthwhile (The IRS doesn't audit unless it thinks there may be enough potential recovery to make it worth the audit cost.) So once you factor in that all the income on information returns is picked up and audited if it doesn't eventually get reported or accounted for, the audit rate is MUCH higher than you're suggesting, and there isn't a lot of truly voluntary compliance. Why, after all, do you think the IRS went to requiring information returns in the first place? Could it be because a lot of people were "forgetting" to include some or all of the unreported income? Pretty safe guess, I would say. Now, you tell all of us. If there were no information returns, no way to check up your tax information except an audit, and a true 5% audit possibility, and if the only penalty for not paying tax was to pay the tax (no punishment, this is, after all, a voluntary system) you tell us that you would report all your income and pay all your taxes voluntarily. And we'll believe you. Or at least 5% of us will!