The IRS wants to tax your illegal income, page 4


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reply posted on 2-3-2013 @ 06:56 PM by JiggyPotamus
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 anything...

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.


reply posted on 2-3-2013 @ 08:26 PM by MysterX
Originally posted by WeRpeons
reply to
post by Phage



I would think the government put that line in there to cover any illegal drug confiscation or other illegal sales that ended in a trial. They would than have legal means to tax the criminal organization of any illegal sales that were not claimed on their tax forms. The government is always looking for ways to increase its tax revenue.
edit on 2-3-2013 by WeRpeons because: (no reason given)


I doubt it works like that.

In cases of so-called drug lords and cartels, they just freeze all accounts they can trace and seize all assets as 'proceeds of crime' and be done with it...rightly so imo.

No need to invent new Mickey Mouse tax regs at all to get their hands on dodgy cash.


reply posted on 2-3-2013 @ 08:26 PM by Evanzsayz
Originally posted by Agarta

The IRS wants to tax your illegal income


fox43.com
As ridiculous as it sounds, the federal government requires that money acquired through illegal means be reported and taxed just like legitimate income. It’s right there on the official IRS tax instructions: “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 or Schedule C-EZ (Form 1040) if from your self-employment activity.”
(visit the link for the full news article)


Related News Links:
money.cnn.com
dailyme.com


Ok, are they saying its perfectly okay for anyone to sell drugs to little kids as long as they pay the IRS tax on the transactions?


reply posted on 3-3-2013 @ 08:48 AM by RebelSoldier
reply to post by Agarta



Reminds me of the "Crack Tax"

In some states you are actually supposed to buy tax stamps for any illegal drugs that you sell


reply posted on 3-3-2013 @ 12:55 PM by FeatherofMaat
reply to post by Agarta



They've done this for decades. the point is it gives the Feds another criminal charge if they can't get you on the illegal activity. it has ZERO to do with thinking anyone is going to report anything. Al la Al Capone.


reply posted on 3-3-2013 @ 02:09 PM by yamammasamonkey
reply to post by Agarta



Illegitimate income has always been subject to taxes. Nothing else to be said.


reply posted on 3-3-2013 @ 06:41 PM by Donkey_Dean
reply to post by Agarta



Sorry Bro, but I have to say it. DUH!!!! Tax evasion has been an issue since, well forever!
edit on 3-3-2013 by Donkey_Dean because: (no reason given)

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