To clarify my prior email -- the first sentence
should read " .... it is a violation of the
Internal Revenue Code /not to report such income/."
-Steve H.
On 8/10/2011 6:10 PM, Steve Hoffman wrote:
> In all seriousness, income from any sort of
> illegal activity (e.g., sale of drugs,
> prostitution, embezzlement, blackmail, armed
> robbery ... whatever!) ARE taxable and it is a
> violation of the Internal Revenue Code. On the
> 1040 Form it'd be reported on Line 21: "Other
> income. List type and amount."
>
> Of course, criminals don't comply with this.
> But their failure to report illegal income gives
> law enforcement another count to charge them
> with ... and it can be useful in prosecution,
> e.g., if for some reason they can't get 'em on
> the underlying crime they can get 'em on tax
> evasion. Some notorious gangsters in American
> history were jailed for tax evasion rather than
> for the crimes that netted them the income they
> failed to report the tax on.
>
> I suppose if Ms. Gregory (the alleged embezzler)
> can get the attention of a Tea Party politician,
> she can try to argue that requiring her to pay
> the $322, 970 would constitute a tax increase
> and that, instead, federal spending should be
> cut by $322, 970 ;-p
>
> -Steve Hoffman
> Takoma Park MD
>
>
> On 8/10/2011 11:25 AM, Effgen, A. B. wrote:
>> Thank you, Arianne, for the notice, and Steve
>> for the additional links. I f=
>> ind it amazing that the history of the house
>> mirrors the life of its owner,=
>> time and again. Ralph Ashcroft, anyone?
>>
>> If there is some humor to be found in the
>> situation it is in the Hartford C=
>> ourant article from August 5:
>>
>> "She also failed to pay federal taxes on the
>> money she embezzled from 2002 =
>> to 2010 and underpaid her taxes by $322,970,
>> according to the Internal Reve=
>> nue Service."
>>
>> I file a 1040 every year and have seen the line
>> items accounting for tips, =
>> and for gambling winnings, but not the line for
>> embezzled funds. Is there a=
>> separate schedule?
>>
>> On another topic, related only by geography,
>> should you find yourself in Ha=
>> rtford, around the time Mr. Courtney gives
>> another tour of Cedar Hill Ceme=
>> tery in Hartford, I recommend you go. Best five
>> bucks I've spent in quite a=
>> long time. Between Cedar Hill and Mount
>> Auburn in Cambridge you can stand =
>> within six feet of the remains of almost every
>> relevant person in Twain's N=
>> ew England life. Plus the number of Civil War
>> enthusiasts who attend give y=
>> ou a real sense of nineteenth century facial hair.
>>
>> Steve, my apologies for not writing a review
>> sooner. My father and I arrive=
>> d late, crept into the back of the pack, and
>> had to leave to make a train u=
>> pon conclusion. A beautiful day for a cemetery
>> walk.
>>
>> Then completely unrelated beside the name Mark
>> Twain, I've got about 2,000 =
>> words to send to the MTF but not the time to
>> write them. I'll give you the =
>> topic...Will Farrell is the Kennedy Center's
>> choice for this year's Mark Tw=
>> ain Prize for American Humor.
>>
>> ...
>>
>> Thoughts?
>>
>> In disbelief,
>> Alex Effgen=20
>>
>>
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