The FairTax makes ALL tax collection points self reporting.
Actually since the taxpayer in a retail sales tax system is the purchaser of goods and services a retail sales tax system assures that the one paying the tax is not the one held liable for accurate reporting of the taxes due. For every transaction taxed, there are more than two persons aware of the tax collectors existence, the purchaser, the seller, the suppliers to the business selling and the government issuing business certification providing tax exemption for purchasing in production or aquisiton of products for ultimate retail sale.
Lots of potential witnesses, and lots of oppertunity for government to monitor 90% fewer tax collection points than exist today, less than 20% of which carry more than 80% of the total retail dollar volume. A max risk for little gain for the tax collecting point.
OTOH, under the income tax system the payer of the tax and the reporter thereof is one and the same person. Making an income tax/payroll system totally dependant upon self reporting, begging to be violated and cheated.
You don't understand what self reporting or third party reporting means.