The season of filing taxes begins and the Internal Revenue Service (IRS) says taxpayers must report income gained from stolen property, receiving property, or the sale of illegal drugs in 2020.
That provision that sounds like a joke, is true. The IRS considers criminal activities that report income as forms of "self-employment". An IRS spokesperson confirmed that the income is on his institution's website, but declined to comment.
There are instructions to enter income from illegal activities, on the 1040 form on the IRS tax return, which had gone unnoticed until a website that makes memes on economic topics found it.
However, this time it was not a meme, it is true that the United States government asks to declare income from corruption and illegal activities.
"Profits obtained from illegal activities, such as money obtained from the sale of illegal drugs, must be included in Schedule 1 (Form 1040), line 8z or in Schedule C (Form 1040) as part of a self-employment activity," says the instructions for the 2021 income statement.
"If you steal property, you must report its market value as income on your annual return, unless you return it to its rightful owner before the end of the year," the provision continues.
This is not the first time that the United States government has asked for income from criminal acts to be reported. In fact, in the 1920s when it was first imposed, it was the government's main tool to nullify Al Capone's legal strategies and his illegal sale of alcoholic beverages.
An appeals court later found that provision contradicts the Fifth Amendment, which prevents Americans from incriminating themselves. The Supreme Court decided that there is no contradiction since the IRS collects the tax without sanctioning the action.
Just over three months ago, in September, the IRS partially submitted payment instructions for the marijuana sale.
While the sale of marijuana for therapeutic reasons is legal in 29 states and the sale of marijuana is legal for any reason in 9 states, for the federal government, it continues to be an illegal activity.
For example, California has annual reported marijuana sales of $ 875 million, for which it earns annual state taxes of at least $ 76 million, according to the specialized portal Marijuana Business Daily.
As for the willingness of the IRS to collect taxes for all types of income from illegal activities, now that this section for the tax return that must be filed this week is known, there have also been interesting doubts from taxpayers on social networks.
“If I stole a car and then it was stolen from me, do I enter it in income, deductions, or both?” Asked one taxpayer.
Another expressed doubts about the prices of items he stole in 2021 and said he would go ask the owners he took and that, if he returned alive, then he would pay the taxes.
Still, another asked if addicts who use drugs can be considered "dependent" since they depend on the use.
