Good info, and nicely laid out for everyone to see. I have done taxes for a long time, and everything you said is pretty spot on. My best advice is to be pro-active like you stated. The IRS is actually very easy to work with if they can tell you are being honest and upfront and not trying to hide anything. On the other hand, if you want to hide your sales and such, be prepared. The IRS tone changes when they eventually find that out. And yes, it almost always comes back to bite the person in the butt. With the new sales tax laws and such that they want on internet sales, you better believe they will be looking. Again, be prepared if you choose to evade what you owe.
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