this post was submitted on 16 Jun 2024
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No Stupid Questions

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I have seen multiple times on Lemmy that the IRS wants people to report income from illegal means and that they don't care to bust someone for it. For example, an illicit drug dealer is expected by the IRS to report their drug sale revenue without having to worry about being caught for drug dealing.

Will the IRS seriously not report illegal activities or individuals that report they earned income through vague illegal means?

If they don't, do law enforcement agencies skim IRS tax reports to find people that report illegal income to further investigate?

Can IRS tax forms that report illegal income be used against someone in court?

It just seems ridiculous that reporting illegal activity, however undefined, to the federal government would be a safe option.

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[–] satanmat 76 points 1 week ago (15 children)

It is not a safe option.

It is designed as a catch all.

The FBI isn’t going through tax returns looking for Illegal income; rather if you’re suspected of illegal activity, they WILL go through your tax returns, because if you didn’t report your illegal income that is another law you’ve then broken. — See Al Capone

So. It is both a very bad idea, and a good idea to report your illegal income

A better idea is to not do anything illegal; or at least do the illegal thing offshore and hide the income there. Like a good multinational corporation would.

[–] [email protected] 3 points 1 week ago (4 children)

Would that not be illegal under the fifth or does the right for congress to collect taxes override that?

[–] [email protected] 0 points 1 week ago (1 children)

You can only plead the 5th while you're in court. Prosectors are free to use all the shady crap you did that they have evidence of in building a case against you though.

[–] [email protected] 4 points 1 week ago

Hi that is not true.

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