I'm sorry, @Camp1040 , but you seem to have the wrong idea about voluntary compliance.  Haven't you learned that if it can't be traced, it's not taxable?  It's not whether you actually received the income, which obviously happened here.  It's all a question of what you can get away with.  If there is no piece of paper with your name and SSN on it, it didn't happen.  It's the American way!