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 >> >>