When you don't file, there might be a penalty for failure to file, and even worse they could try to say "tax evasion" ...

Actually, it's tax avoidance, not evasion, but I'm sure evasion is there as well.

He started being constantly late, very evasive.

If you know someone who's collecting rent and not reporting it on their tax returns they're committing tax evasion. 

He later served 10 years in prison for tax evasion.

Your creativity is setting you up for tax evasion if you use your inflated price to compute capital gains or calculate depreciation on a future tax return.  

Well, I'll say it, IRS Code requires a full accounting of all amounts exchanged in any real estate transaction, RESPA may or may not apply, the Code applies to any RE transaction.Buyer must account for fees and expenses paid to establish the correct basis in compliance with the Code.......unless you like taking chances of tax evasion, I suggest you show and report costs.A buyer can show an assignment fee on lines in the 200 section, summary of borrowers transactions, it can be shown "P.O.C." for paid out of closing.

And make sure that they (contractor) knows that you intend to wave the flag in your defense and throw him under bus, and tax evasion is a No-no!

I think Greece has the highest tax evasion rate in Europe, and they retire at 23 or something with a pension? 

These places generally don't provide any worthwhile investment opportunities and, if you invest in any other country, you'll still be liable to pay taxes in that country.Also, the laws are very complex and there are a lot of scammers marketing tax evasion schemes as tax avoidance.