2007-09-04 06:49:41 · 18 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
roflmao
2007-09-04 06:56:59 · answer #1 · answered by Anonymous · 1⤊ 1⤋
That depends. Under law, you are required to. The government will want to know where you got the money from. And you'll have to admit it or come up with a bogus story that the IRS will probably question and bust, anyway. It goes on page one of the 1040 under "other income."
Now if you want to hide the income, you can. But once you get caught dealing, you'll go to jail and the IRS will investigate, forcing you to pay for all of the years of dealing, not just this year.
My advice as a tax preparer: stop selling drugs and get a real job.
2007-09-04 13:59:48 · answer #2 · answered by theewokprincess 5 · 0⤊ 0⤋
The first time this issue made it to the Supreme Court up involved a bootlegger (Manley Bowler) in 1927. The answer was yes, tax is due on income from whatever source derived, including illegal sources.
2007-09-04 13:58:09 · answer #3 · answered by Anonymous · 2⤊ 0⤋
Several years ago, cops in my area had a sting operation and arrested several prostitutes. After their conviction, the IRS came in and examined their bank accounts, apartments, clothes .. everything about their finances and assessed income tax on the estimated income based on their lifestyle.
2007-09-05 03:11:39 · answer #4 · answered by Mark S 5 · 0⤊ 0⤋
Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
If you file Schedule C or C-EZ, you can deduct expenses to earn the income.
2007-09-04 14:04:23 · answer #5 · answered by MukatA 6 · 2⤊ 0⤋
Believe it or not, you're supposed to declare all income earned to the IRS, no matter if it's illegal or not. Although, if any drug dealer, only somebody who has sampled his own merchandise would declare illegal income on his tax return.
2007-09-04 14:48:11 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Legally, yes - that's what brought Al Capone down, he didn't pay tax on his illegal income.
2007-09-04 16:48:38 · answer #7 · answered by Judy 7 · 0⤊ 0⤋
yeah be sure to report your drug profit to the government. just make sure you launder it first. go watch "Scarface" and you can see all the companies Tony set up to launder his drug money. One suggestion for cleaning up drug profits is to go into the video game business--then you can just report all your income as profit from your legitimate business--but you were just kidding right?
'
2007-09-04 13:59:03 · answer #8 · answered by missbeckythacher 2 · 0⤊ 0⤋
ABSOLUTELY YES! But, IRS generally will not pass along information about illegal activity. If asked by another law enforcement agency, they will reply.
2007-09-04 16:35:57 · answer #9 · answered by Hank Roitman, EA 4 · 0⤊ 0⤋
Yes! Most big time gangsters etc. are not arrested for their activities but for tax evasion.
2007-09-04 13:56:04 · answer #10 · answered by dcholsted 2 · 3⤊ 0⤋
Are you familiar with Al Capone?
2007-09-04 13:54:12 · answer #11 · answered by ? 6 · 3⤊ 0⤋