In a semi-serious Facebook thread about a shoplifting arrest, one commenter mentioned that the thieves need to report their illegal loot to the IRS. I couldn’t believe it, so I looked it up.
Sure enough, it’s true. I hadn’t seen it before because it’s not in the regular instruction PDFs. I always file Schedule C, and always read the annual instructions. It’s here in Publication 525.
Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8, or on Schedule C (Form 1040) if from your self-employment activity.
Wage gangsters working for mafias should report on Schedule 1, and gig gangsters should use Schedule C. Do the mafias send out W2s?
IRS made a media push back in December to remind SMALL criminals of their legal duties.
Hmm. That’s odd. I never heard IRS reminding Facebook about its duty to pay BILLIONS. FB uses an ‘offshore patent location’ to evade BILLIONS, and other BIG criminals like Amazon simply buy their own tax laws from Congress.