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I think most people prepare their taxes correctly.

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Do most people declare the following as income?

> Mistakes made by a cashier in their favor (presumably our honest tax payer did not notice this until later). BTW, if they fail to notice the cashier mistake, they are still filing their taxes incorrectly.
> Money earned through odd jobs, babysitting, etc.
> A friend who gives you $20 for gas since you drove.
> Fair value of free drinks when you forgot your wallet and a friend paid.
> All winning lottery tickets, pull tabs, etc, regardless of amount won.
> All wins from a casino playing blackjack, etc.
> The $5 bets that you won from your golf buddies.
> Fair value of frequent flier miles that you earned while taking an employer-paid business trip.
> Any other cash received which is not specifically exempted from income per IRS regulations.

Alot of people will occasionally lose a couple hundred dollars gambling in a casino. I would guess that fewer than 1% of these recreational, losing players reports income for their gross wins.

I would say that almost no one prepares their taxes correctly. Most people make a good faith effort and are honest in reporting substantially all of their income.

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you sir are 100% right.