Illegal income and the IRS

Illegal income is taxable

Published on April 15, 2004 By Redshirt #3 In Politics

According to the IRS: "Illegal income, such as stolen or embezzled funds, must be included in your income on line 21 of Form 1040, or on Schedule C or Schedule C–EZ (Form 1040) if from your self-employment activity. " You can find it on the liked web site between "Holocaust victims restitution" and "Indian fishing rights."

Comments

russellmz2

on Apr 15, 2004

yeah...what's your point?

from straight dope.com

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.

messybuu

on Apr 15, 2004

I think that's the point (what the quote says). It's just amusing that such a field would exist.

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