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Archive for January 14th, 2009

Bribes, thefts and other taxable income

If you made money, the IRS wants some of it, and it doesn’t matter whether
you made it honestly or were running drugs. Here are income-reporting rules you
might not know about.
Did you sell a few kilos of marijuana, take a bribe or
steal a computer in 2008? Be sure to include that income on your tax return,
unless you want to get in trouble with the Internal Revenue
Service.
Virtually all Americans know they should report income such as
wages, capital gains and tips, even if they don’t. But if you’re an average
taxpayer, you might not be familiar with some of the tax code’s lesser-known
income rules.
The basic rule is this: If it counts as income, it’s
taxable.
It doesn’t matter where that income comes from. Prohibition-era
gangster Al Capone contended, “The government can’t collect legal taxes from
illegal money,” but he was wrong and wound up with eight years in prison for tax
evasion. The tax laws are regularly used to nab other crooks the same
way.
Maybe your year was better than a convicted drug dealer’s. Did you win a
Nobel prize or a beauty contest? You might have additional income to
report.

but then come to think of it, who in his right or “left” mind hehe would declare that they stoled or do drug business. Well, law is law,

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