I think people look at the taxes and they reckon that share for the government is way too much, so they take their chances and the under report their gains. I actually over report and then I get audited and the government will owe me money, so they leave me alone.

I would have been able to buy several cheap cars, with the money I had to pay on the capital gains taxes that I had to pay over the last couple of years, but I pay that with a smile, because I do not have to look over my shoulder to see when the tax man will knock on my door.
Pay your taxes and sleep like a baby every night!