Look at what the IRS wants to know!

[skoker]

This is horrible!

http://www.irs.gov/publications/p17/ch12.html

Illegal income. Illegal income, 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.

Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner.

There's a few other gems in there as well...

 

[adk]

The IRS doesn't care how you make your money, so long as they get a piece of it.

I know that in a few states people are technically required to buy marijuana tax stamps from the state government, I wonder how that one goes over....

 

[WildCowboy]

What's so horrible about it?

It's a way for the government to press additional charges against you if you get caught. Tax evasion charges have long been a staple of the feds' strategy in bringing down criminals.

 

[mattscott306]

What's so horrible about it?

It's a way for the government to press additional charges against you if you get caught. Tax evasion charges have long been a staple of the feds' strategy in bringing down criminals.

I.E. for Capone.

 

[epochblue]

I'd always heard about those rules, but I didn't realize they were spelled out so clearly

 

[PlaceofDis]

if they fill it out... they should be caught.

 

[andiwm2003]

completely off topic but a funny story about the german IRS screwing up:

a lady in munich who runs a news stand and sells newspapers got a bill for the IRS to pay 2.1 billion euros in taxes by the end of the quarter. of course she had a small problem with coming up with 2.1 billion in the short time. so she called the irs and told them there's a mistake. the irs didn't react and wanted her to pay the 2.1 billion (yes that's close to 3 billion dollar).

so she had her tax lawyer write to the irs and they finally reduced to tax to 108 euros.

but in germany tax lawers fees are regulated by law and based on the amount of tax to pay. so now she owes the tax lawer 2.5 million euros.

since a news stand doesn't make that amount of money she can't pay it. so she has to sue the IRS for damages or go into bankruptcy. the trial is this wednesday.

and all that for 108 euro tax.