Submitted by xCreamPye69 t3_10ontj7 in explainlikeimfive
xCreamPye69 OP t1_j6fs4gy wrote
Reply to comment by WeDriftEternal in ELI5: Why does the IRS want your illegal income declared on tax returns? by xCreamPye69
But asking people to report on their illegal income is a form of self incrimination isnt it?
21_MushroomCupcakes t1_j6fuc54 wrote
You just check a box and fill in the amount, it's not like they ask for your drug ledger or trafficking itinerary.
Scrantonicity_02 t1_j6fuv0e wrote
DEA= š
WeDriftEternal t1_j6fsdv2 wrote
You must report ALL income. Nothing else is relevant. Did you make income? The law states it must be reported.
If you're going to the fifth amendment route, you aint even the 100 millionth person to think of it, and the courts have already decided it, and it is as I said, you must report ALL income. In theory you can not report the "source" of some income, but it still must be reported... I know you're looking for some out or way around it, its not happening unless you break the law.
ELVEVERX t1_j6fuegu wrote
>its not happening unless you break the law
I mean that's already happening it's illegal income
WeDriftEternal t1_j6fuo8a wrote
Yes, but now you've committed another crime, and tax fraud often can have significant criminal charges attached to it. So you're digging a deeper hole. Although if you will be prosecuted for it would depend on the govt's decision on what to charge you with. Its just adding up potential charges against you. However, there's an easy solution around this: Don't do illegal things.
Frednotbob t1_j6gpp03 wrote
Yes, but whether it's legal or illegal is irrelevant to the IRS; it's income, regardless of the source.
They're essentially saying, 'If you're earning income from a source that is not listed in any of the above categories, this is your chance to tell us about it.'
Megalocerus t1_j6gttuo wrote
Tax fraud is easier to prove.
mothman83 t1_j6g7ywm wrote
have you ever seen a tax form? you dont have to LIST precisely what the source of each dollar is. you can just write consulting and there you go...
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... however if you get AUDITED ...... then you often DO have to declare the sources ....
SnowDemonAkuma t1_j6ggulk wrote
The form doesn't ask where the money came from.
BoyScout- t1_j6g9wtn wrote
>self incrimination
Of what crime?
zmz2 t1_j6hthru wrote
Itās not that you report it as āillegal income,ā you just report it as āother incomeā and donāt specify the source. As long as you declare it and pay the taxes, the IRS doesnāt care where it came from.
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