Reddit Post Reveals Strange Tax Law Illegal Earnings Must Be Reported to IRS
Even Illegal Earnings Subject to Taxation, Shocking Reddit Users
According to Snopes, A post on Reddit got a lot of attention in April 2024. It talked about something strange in the tax law. It said that even money made from illegal stuff, like selling drugs or stealing, has to be taxed by the IRS. The post got more than 22,000 likes, and people were surprised and amused. This isn’t the first time this idea has come up. Similar things were joked about in 2021, saying criminals should return stolen things before tax time to avoid paying taxes.
The IRS says that money from illegal things has to be reported on tax forms as other income. This means it’s treated like money you earn from working for yourself. It doesn’t matter how the money was made if it’s illegal you still have to pay taxes.
Even Found Property Counts as Income, IRS Reporting Raises Questions
Even finding and keeping things that don’t belong to you, like lost stuff, counts as income. In the past, there was a special form just for reporting illegal income, but now it’s included in the regular tax forms. It’s unclear if the IRS shares this information with the police, so it’s uncertain what might happen if someone reports their illegal income.
READ ALSO: Apple and Healthcare Company Settlements: Check yours now!