Peter asked: Just out of curiosity Paul how many of your clients report all of their reportable income. I mean the guy finds a $5 bill on the floor and reports it as income. The guy who reports the $100 he made at the crap table. The guy who reports the $20 his neighbor gave when helped build a doghouse.

How many of your clients take out a home equity loan for purposes not related to their principal residence yet still take the interest paymenst as a deduction?
------------------------------------------------------------------------------------------------

Even as an attorney, I think one can separate the difference between the examples you gave above which constitutes a minor part of ones income from the group of individuals who major portion of his yearly income in not accounted for.

I am not saying that given the opportunity, most people wouldn't do the same thing--reporting just a partial part of his income or none at all for that matter--it's just that some are not afforded that right as the IRS already has most is the information as it is.