Do You Know That Criminals Actually Pay Income Tax?

Veuer

The IRS says income from illegal activities, such as money from dealing illegal drugs, must be included in your income.  Veuer's Elizabeth Keatinge has more.

Transcript

00:00Bribes, kickbacks, stolen property, criminals have to pay taxes on that.

00:05The IRS lists many illegal activities on which Uncle Sam must be paid.

00:10Quote, income from illegal activities, such as money from dealing illegal drugs,

00:14must be included in your income, unquote.

00:17If you steal a car or anything really, quote,

00:20you must report its fair market value in your income in the year you steal it,

00:24unless you return it to its rightful owner in the same year, unquote.

00:28The agency states,

00:30Spot a criminal not paying their taxes?

00:32Internal Revenue Code Section 7623 provides for awards to whistleblowers

00:38who submit information to the IRS.

00:40The agency states, quote,

00:42In general, the IRS will pay an award of at least 15%,

00:46but not more than 30% of the proceeds collected attributable

00:49to the information submitted by the whistleblower, unquote.

00:52The IRS, quote,

01:02The IRS, quote,

01:06And the IRS will pay an award of at least 15%,

01:11but it'll pay an award of at least 15% of the proceeds from the IRS.

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