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Thursday, February 18, 2010

Obsurdness

"The IRS specifically states in Publication 525, Taxable and Nontaxable Income, that "Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity."
referenced from: http://dontmesswithtaxes.typepad.com/dont_mess_with_taxes/2008/05/taxing-illegal.html

Well, its tax season. In the news was an article, stating that taxes must be paid on ill gotten gains. This included, theft, money laundering, drugs, embezzlement, extortion, prostitution.... what? Are you kidding. Ok, if you earned the money illegally, off the books and in cash, what is the likelihood that someone is going to report this to the IRS come the end of the year. This is just redickulous. And if there was ever a lesson on running an illegal operation, don't keep books.

The other funny tax rule was that dependents must be humans and have a social security number. In the past people were claiming their dog as a dependent. Otay... really? Who is claiming Fido as a dependent?

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