# Stolen Property is Taxable



## MysteryMan (May 17, 2010)

That's right. If you rob a bank, embezzled money, or staged a heist, the IRS expects you to pay taxes on the proceeds. Income from illegal activities must be included in your income on Form 1040. Failure to do so will add tax evasion to the list of charges against you if you are caught. Who says our government doesn't have a sense of humor. :sure:


----------



## dpeters11 (May 30, 2007)

The Al Capone clause. In Tennessee, there is a tax levied on illegal drugs for the dealer. I think it's an actual tax stamp. Of course, the majority of those that get the stamp are collectors.


----------



## inkahauts (Nov 13, 2006)

Hey, why not right?


----------



## Nick (Apr 23, 2002)

If crook must report and pay taxes on ill-gotten gains, then he can also deduct
expenses related to the obtaining said gains: gas for the stolen getaway car,
burglar tools, bullets, bribes/payoffs, tribute to the mob, splits with cohorts and
any permits and licenses required by local, state or federal regulatory agencies.


----------



## James Long (Apr 17, 2003)

Tax returns are confidential. No, I don't want to be the test case.

Revenuers have long been the enemy of those committing crimes.


----------



## Stewart Vernon (Jan 7, 2005)

Nick said:


> If crook must report and pay taxes on ill-gotten gains, then he can also deduct
> expenses related to the obtaining said gains: gas for the stolen getaway car,
> burglar tools, bullets, bribes/payoffs, tribute to the mob, splits with cohorts and
> any permits and licenses required by local, state or federal regulatory agencies.


Don't forget... legal fees should be tax deductible as well!

What I would be curious to see... and follow me on this train for a moment if you will...

Proceeds from illegal activities are taxable and all that means... ok... so they have to catch you to prove you did illegal things in order to impose that tax and fines... but in doing so, they likely imprison you OR at the least make you give back all the stuff you stole and any money you have and seek to prevent you from continuing your crime spree.

So... could you also sue for lost wages? I mean, if your crime is taxable and they punish you for not paying those taxes in a way that directly impacts your ability to work in your chosen profession then wouldn't they be liable for your lost future income? I would love to see that case argued!


----------



## Nick (Apr 23, 2002)

^ I think you just did! !rolling


----------

