As the United States goes further into debt — more than $29.4 trillion as of this writing — it appears as though the government is getting increasingly desperate to collect taxes on all income means, including money Americans earn by engaging in illegal activities.
A screengrab presumably from the IRS website posted by Twitter user @litquidity indicates the tax agency wants Americans who steal for a living or engage in other illegal activities are required by law to report that income.
Tax szn is around the corner. Remember to report your income from illegal activities and stolen property to the IRS pic.twitter.com/c4S1yMZJLz
— litquidity (@litcapital) December 27, 2021
‘Tax szn [sic] is around the corner. Remember to report your income from illegal activities and stolen property to the IRS,” the user wrote.
According to the IRS’ 2021 Publication 17: “If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.”
DailyMail.com reported that the rule dates to a U.S. Supreme Court case from 1927 in which justices ruled that the government is entitled to tax ill-gotten income. Mobster Al Capone was convicted under the law on a charge of tax evasion.
“Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity,” the IRS rule states.
Twitter users were shocked at the revelation.
the government that expects criminals to report their illicit earnings to the IRS is the same government that believes criminals will follow stricter gun laws lmaooo https://t.co/R5ih1aTnFq
— (@yeahrightgirlhg) December 28, 2021
IRS isn’t playing around. Nothing stuck to infamous mob boss Al Capone, until he got pinned on tax evasion in 1931. https://t.co/3F2cysVVW3
— Andrea S. James ✨⚡️ (@AndreaSJames) December 28, 2021
Life hack: Return stolen property before doing your taxes, then steal it again, to avoid a second crime of tax evasion https://t.co/e2ljfJoMCE
— ikissbabiesforpublicity (@DtJ_Rinzler) December 28, 2021
Did not expect the Biden IRS to come out so hard against Democrats. https://t.co/MQv5gOqqIg
— Dr. Mark Young (@MarkYoungTruth) December 30, 2021
The IRS is trending. This is what #TaxTwitter is here for. It’s amusing some people don’t know you have to report your illegal activity and things you stole. Does nobody remember how Al Capone was broughtdown? #FixTheIRS pic.twitter.com/BooF3RyfRe
— Brian Streig, CPA (@cbriancpa) December 27, 2021
The IRS is serious about this and I can’t get over how funny it is. pic.twitter.com/sjcQD8BQJA
— SB (@sugabelly) December 27, 2021
Even one law enforcement agency made a comment regarding the IRS rule.
“Attention all car thieves. The stuff you stole from people’s vehicles in 2021 must be claimed on your income taxes,” the Erie County Sheriff’s Office in New York noted on Facebook.
“If you need an itemized list of property call us at [phone number] & a Deputy or Detective will be happy to meet you with the list. It would be our pleasure,” the department added.
Jon has over 30 years' worth of reporting experience, as well as an author and U.S. Army veteran. He has a BA in political science from Ashford University and an MA in national security studies/intelligence analysis from American Military University.
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