Criminals Required to Report Income
2009-01-13 16:08:34.320138+00 by
ziffle
5 comments
Tax Requirements
Page 33:
"Illegal activities. Income from illegal activities, such as money from dealing illegal drugs,must be included in your income on form 1040 line 21, or on schedule C-EZ (Form 1040) if from you self employement activity."
Page 34:
"Kickbacks. You must include kickbacks,side commissions, push money, or similar payments you recieve in your income..."
Page 35:
"Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner"
I wonder if treatment for injuries incurred during such activities is deductible then? Can they itemize mileage for traveling to the scene of the crime?
What a world..
Mayberry
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comments in ascending chronological order (reverse):
#Comment Re: made: 2009-01-13 16:30:34.049697+00 by:
other_todd
I quote Cecil Adams [http://www.straightdope.com/co...egal-income-on-your-tax-return]:
"IRS has been listing 'embezzled or other illegal income' for years, but they don't really expect the nation's criminals to comply. It's just that income-tax evasion is often the only thing prosecutors can pin on big-time crooks. The notice prevents the bad guys from arguing that nobody told them they were required to report their ill-gotten gains. If anybody was actually dumb enough to send in a list of his swag for the year, the folks at the IRS say they'd promptly alert the appropriate authorities."
#Comment made: 2009-01-13 17:32:48.99483+00 by:
Dan Lyke
I was also under the impression that the IRS was generally unable to share any information derived from those lines with law enforcement without additional information (ie: a warrant). I've often thought of reporting a hundred or two on those lines to see what sort of knock at the door I'd get.
#Comment Re: made: 2009-01-13 23:08:02.835588+00 by:
ebradway
I always figured those lines were there for a sort of double jeopardy. Not only
are you guilty of robbing a bank, but you also are guilty of tax evasion since
you didn't report it.
#Comment Re: made: 2009-01-20 04:29:37.329544+00 by:
baylink
In fact, several notable busts of Guys and Dolls era mobsters were made by the IRS.
#Comment Re: made: 2009-01-20 09:42:01.256313+00 by:
meuon
I can almost envision Dan's humorous (and fictitious) list:
$1 worth of candy from a baby.
$500,000 from house of prostitution
$25,000 from illegal moonshine and beer
But the bar has been raised, modern criminals steal Billions.