Not really? There are things that you're not required to report to the IRS that others can use to underreport income -- for example, the identity of which contr

Not really? There are things that you're not required to report to the IRS that others can use to underreport income -- for example, the identity of which contractor you made small cash payments to. Reporting their identities to the IRS is not illegal, but neither is failing to. (Also, I assume you mean tax evasion? Avoidance is the legal one.)