[scott2130]

I am a public accountant and this is true. I have had an audit were the IRS showed up with my clients bank stmts (your bank will give them to the IRS). They had to explain every deposit. This is how they catch waittress, bartenders, (tipped employees) that don't claim all their tips.

They can also back into your income. ie: If you bought a new car, boat, house, trip, roof, furniture etc. and only reported a w-2 with 35k, how did you pay for these items. The IRS does have some stupid employees, but not all are clueless.

Just play it smart and report anything that can be remotely traced. A quick $500 on the way through Vegas to the Hoover dam will go under the radar, but not if you do it weekly or 2-3 times a week.