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
>>
>>