Viewing a single comment thread. View all comments

WeDriftEternal t1_j6fsdv2 wrote

Reply to comment by xCreamPye69 in ELI5: Why does the IRS want your illegal income declared on tax returns? by xCreamPye69

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.

9

ELVEVERX t1_j6fuegu wrote

>its not happening unless you break the law

I mean that's already happening it's illegal income

5

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.

0

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.'

0