Yes, you are wrong. As your mind is obviously closed I will let this go after this, but briefly: TB does NOT verify beforehand, I have ALREADY been paid by them on this basis. It is NOT tax evasion or avoiding, you do not know the law (liability applies to a particular class of people who earn, of which I am not one), and not all earnings are income. Local and state tax reporting laws follow downstream from the federal, so if you are not required at the federal level you are not required to locally---my own state has ALREADY confirmed this in writing to me.
The "United States" as statutorily defined is only DC and federal territories, so yes, I do not reside there, or use its pavements, roads, etc. (and last I heard, no government owns the air, LOL). The method mentioned simply seeks to take the path of least resistance in lawfully resisting the overreach of the IRS's (and your) presumptions that all must report or pay, and its hardwiring of the paperwork process to falsely make it appear as such.
Not consenting to the paper trail short-circuits an erroneous assignment of liability from the outset, which is why it is the preferred route taken by many BHers. So I don't live off your dollars, rather, by accepting IRS rhetoric on face value it is you who lives off everyone's stolen funds, taken by that agency's fraudulently presumptive system.