This does sound dumb, but it also reminds me of a story my grandmother once told me, which I may have mentioned on these forums before, but I cannot be certain. She said that when she used to live in the city, back in the 60's or early 70's, there was a brothel and a madame she knew about, although not personally, lol. She said all of the "employees" there filed federal income tax, listing their occupation basically as a prostitute. I do not know if that is the exact word they used, but it could have been. That is one of the nicer words to describe that particular trade I suppose.
She said that the government never gave them any hassle or anything. They accepted the income filings, of course, and treated them like filings from
any legal profession. It probably does not need to be stated that this profession was illegal in this particular state. If memory serves me correctly,
there is only one state that has legalized prostitution, and that is only for small portions or counties. I am talking about Nevada obviously, but
I'm not sure how all of that works. Is prostitution legal in Canada? Not really related, I am just curious. Not thinking about moving to Canada or
Now, there are not going to be any drug dealers filing federal income tax, simply because the government is not going to overlook something like this,
and instead they are going to use the information to identify the big players in the drug world. Now if there were some law to be passed that
prevented the IRS from sharing information of this regard with federal agencies tasked with arresting criminals for crimes like drug dealing, then
maybe we would see some filings. I only say this because it would decrease the charges brought against the criminal if they were ever caught.
If we are talking about a multi-million dollar drug dealer here, then tax evasion is likely to be added to the list of charges when the federal
indictment comes down. Honestly though, I think a drug dealer still could file income tax as things currently stand, if the law already knows about
them. But I am not sure if an income tax filing listing income from selling narcotics would constitute enough proof to arrest and charge someone. If
not, it could probably be done with no backlash. But I am not a lawyer, and I really have no clue about what would constitute proof with something
like this...Interesting to ponder though imo.