<prompt> Human: I always knew I wanted to buy a house and use rental income from rooms, it seemed like a great deal for someone single and used to having roommates. I often asked them if they declared the income for my own planning.So I finally have a house and filled it up with tenants.From a cost-benefit analysis, its hard to see how declaring is the right move. In the very rare chance you get audited, the IRS seems to settle for the money you would have paid anyways. Am I being naive?  <response>: No, cheating on taxes is not smart and the IRS has a long arm. 