Try going over to fairtax.org and reading ALL of the material. Come on, is there a state tax agent sitting right next to cash registers? No, and there will be no need for it to happen when the Fair Tax is enacted.
The people who will collect the National tax will be retailers. They'll do exactly the same things they do now for state, county, and local sales tax. The one exception is that they get to keep 1/2 of a percent of the tax collected to cover their admin costs. That's a lot better than being under the gun from the state with nothing in return except that you get to keep your business license and stay out of jail or keep breathing.
See #67