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All communities included on the sidebar are to be made in compliance with the instance rules. Striker
If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.
Lesson learned. Steal on Jan 1st 00:01, return to owner on Dec 31st 23:59, rinse repeat.
So then if you get caught and these are taken away from you, I assume you can declare it as a loss and get an equivalent deduction the next year? I wonder if anyone's ever used this to their advantage to game their tax rates?
"damn, I can't steal any more this year or I go up another tax bracket"
Oh sweet, so I can steal stuff Jan 1 and return it Dec 31 with no hit on my taxes. This changes everything.
Completely seriously; while I’m sure essentially no one actually does, the IRS is not going to like network with the FBI or your local police department if you, for some reason, decide to pay taxes on your weed sale profits. Unless you report that you’re selling sex slaves they seriously could not care less.
I know it’s just a joke image but I do love the idea of someone who makes much of their money illegally but also has this very honorable commitment to paying their fair share in taxes.
This is just my D&D character. He's an accountant for a thieves' guild
More specifically the IRS field book discourages reporting illegal income to other agencies for basically everything besides terrorism. Also, when you file taxes there's a reason there's an "other income" field. Nobody expects you to list "MS-13" as your employer. You can report money earned from illegal activities to avoid additional federal charges being tacked on
I know it’s just a joke image but I do love the idea of someone who makes much of their money illegally but also has this very honorable commitment to paying their fair share in taxes.
If you're convicted of criminal activity you'd be smart to include that in your taxes. The last thing you need is to be convicted of tax fraud in addition to getting convicted of drug trafficking. If the government already has a record of you profiting from criminal activity, make sure you give them their cut.
Also you're allowed to plead the fifth on the origin of the income IIRC, though honestly that's just as likely to get you looked at by the FBI/local constabulary.
On the other hand if you're making enough money illegally to feel the need to declare it on your taxes (either for ethical reasons or because you don't want to get done like Al Capone) law enforcement is probably already looking at you.
The premise of it is basically to have an easier way to prosecute organized crime since those folks rarely are keeping honest books.
Yeah, they got Al Capone for tax evasion, and they’ll get you for confessing to a crime on official government documents.
Line 8z is "all other types of income" it's not specifically "income from crimes."
It's just a catch all for anything not covered in A through P. Like, gambling winnings or unreported cash tips. The IRS just wants their cut. They don't actually care where the money comes from. An insurance payout might go on that line.
