Not sure what you’re getting at, but since you are legally required to pay taxes, and the 5th amendment protects you from self-incrimination, your tax statements are inadmissible in court.
The Revenue Service would much rather you pay your taxes, even if it was from an illegal activity, rather than just avoid paying them at all, to avoid the risk of prosecution.
That is always so funny to me. “Hi IRS. I stole $10k worth of goods in 2023, but before I could sell them in 2024 the police confiscated them. Do I count this as a loss for 2024 or…?”
Fun fact: you also need to report any money you got illegally on like 8z of your 1040. The government wants a cut of your crime money.
Not really. It’s a tool to prosecute people who make their living by breaking the law.
… wait …
AHAHAHAHHAHAHHAHAAHAHHHHA
Not sure what you’re getting at, but since you are legally required to pay taxes, and the 5th amendment protects you from self-incrimination, your tax statements are inadmissible in court.
The Revenue Service would much rather you pay your taxes, even if it was from an illegal activity, rather than just avoid paying them at all, to avoid the risk of prosecution.
I was laughing at my own statement:
That is always so funny to me. “Hi IRS. I stole $10k worth of goods in 2023, but before I could sell them in 2024 the police confiscated them. Do I count this as a loss for 2024 or…?”
So…yes kind of.
https://en.wikipedia.org/wiki/Taxation_of_illegal_income_in_the_United_States