Question

Obviously the U.S. tax system, as it currently exists in my experience, relies heavily on the honesty of those who file. This seems hopelessly naïve -- don't we commonly assume people are not worth trusting? We lock our doors, walk faster at night (if we walk at all), assume the world is pretty dog-eat-dog, etc. On the other hand, though, don't most tax cheaters attempt to do so legally via loopholes instead of outright lying? Even though the penalties may not be particularly severe? So isn't the IRS ultimately correct to assume that people will be honest? John David?