Affluent Avoid Scrutiny on Taxes Even as I.R.S. Warns of Cheating The government looks for tax cheating by wage earners far more carefully than it looks for cheating by people whose money comes from their own businesses, investments, partnerships and trusts. This is true despite many warnings by federal tax officials that cheating is becoming far more common among affluent Americans. Even as Congress finances a crackdown on tax cheating by the working poor, it is appropriating little money to detect abuses by people, usually among the wealthiest Americans, who do not rely entirely on wages for their income. Executives at the Internal Revenue Service have mentioned this discrepancy in several reports to Congress. They have not focused attention on how little they can do about it. But an examination by The New York Times of I.R.S. statistics including audit rates and staff deployment figures, as well as interviews with current and former I.R.S. officials, shows that the agency can identify at best only a tiny percentage of the cheats and pursue even fewer of them. That the I.R.S. audits the working poor more frequently than wealthy people is well known. What has not been discussed is that the agency does not track nonwage income as closely as wage income � and in some cases does not verify it at all, even as the I.R.S. says that cheating on nonwage income is rising. http://www.nytimes.com/2002/04/07/business/07TAX.html?todaysheadlines&pagewanted=all