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tylerlarson t1_j6i4ty9 wrote

The logic is really simple:

You owe income tax on your income. There is no exception saying that illegal activity is tax-free. (The only exceptions have to be written as laws, the IRS doesn't get to decide.)

Therefore, even illegal activity is technically taxable.

It's also pretty easy to see if you made a ton of money you didn't declare on your income tax because if you spend it then it had to come from somewhere.

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