Saturday, January 11, 2014

How silly can the federal government get?

Sell drugs for a living?  Better report it to the IRS.  Wouldn't want to get in trouble...
Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.      
Yes, this is real.  I am sure all of the drug dealers out there are talking to their accountants and trying to figure out if any of their product is tax-deductible.

In another section the document instructs you to self report welfare fraud:
You must include in your income any welfare payments that are compensation for services or that are obtained fraudulently.


  1. I actually think that the courts have ruled that this is not allowed. The reason is that you sign your tax return which is swearing under penalty of law. This violates your 5th Amendment rights against forced self incrimination

    1. Makes sense, but you lose the comedic value. Darned courts have no sense of humor.