NemyMongus t1_j6g0q4t wrote on January 30, 2023 at 1:46 AM

It is truly because the IRS wants the tax income. The IRS actually cannot legally disclose any taxpayers return information to a law enforcement agency unless the law enforcement agency gets a court order granting them access. The important thing there is that the IRS can't tip off law enforcement, law enforcement has to be the one to initiate the request. The only exception to this is if terrorism is involved. It still requires a court order but the IRS can be the one to request the court order.

This only applies to your actual tax filings though. If you get audited, any information they gather through interviews etc can be turned over to law enforcement if there is evidence of a crime being committed. That is probably a functional workaround. If you report illegal income on your taxes, you'll get audited and the witness testimony from the audit is turned over.

https://money.cnn.com/2013/02/28/news/economy/illegal-income-tax/index.html

Megalocerus t1_j6gtoxg wrote on January 30, 2023 at 5:28 AM

Since you are required to provide the return, there is a self-incrimination issue involved.

DrBoby t1_j6hog4w wrote on January 30, 2023 at 12:05 PM

You are not incriminating yourself by saying "I'm a criminal". Can't be punished for just that.

Cetun t1_j6i4g8p wrote on January 30, 2023 at 2:30 PM

Yea if you report illegal income there probably isn't receipts, so the IRS is going to be real curious as to how you came to that amount and suspicious that there might be more you aren't claiming.