Definitely an improvement. It would likely be rare for the IRS to assert extra income than the taxpayer actually received, though exceptions will exist. Income

Definitely an improvement. It would likely be rare for the IRS to assert extra income than the taxpayer actually received, though exceptions will exist. Income actually earned but not reported would be more common. If the IRS later notices, presumably any recipient who is impoverished and for whom there's no evidence of fraud wouldn't be charged penalties on any balance due, and might be eligible for some offer in compromise or installment plan. This is no different than now, except even less of a justification for penalty when self-reporting isn't the norm.