Would that not be illegal under the fifth or does the right for congress to collect taxes override that?
Comment on Is someone safe if they report income from illegal means to the IRS?
satanmat@lemmy.world 2 weeks ago
It is not a safe option.
It is designed as a catch all.
The FBI isn’t going through tax returns looking for Illegal income; rather if you’re suspected of illegal activity, they WILL go through your tax returns, because if you didn’t report your illegal income that is another law you’ve then broken. — See Al Capone
So. It is both a very bad idea, and a good idea to report your illegal income
A better idea is to not do anything illegal; or at least do the illegal thing offshore and hide the income there. Like a good multinational corporation would.
LodeMike@lemmy.today 2 weeks ago
satanmat@lemmy.world 2 weeks ago
Oooh. I like that.
I’d think that courts would say that you can’t claim the fifth, since you self reported the illegal income. And that had you failed to claim it, you’d be evading taxes….
So yes. You COULD claim your 5th amendment rights against self incrimination, but then you’ve violated the 16th where you’ve failed to declare income.
LodeMike@lemmy.today 2 weeks ago
Yeah that’s what I was thinking. Thank you.
FalseMyrmidon@kbin.run 2 weeks ago
You can only plead the 5th while you're in court. Prosectors are free to use all the shady crap you did that they have evidence of in building a case against you though.
LodeMike@lemmy.today 2 weeks ago
Hi that is not true.
Modern_medicine_isnt@lemmy.world 2 weeks ago
What you need to do is report your illegal income in a legal way. Like say you are a life coach, and you advise people.
Potatos_are_not_friends@lemmy.world 2 weeks ago
If it looks extremely questionable, like you’re a life coach in Alabama and made 380k, it’ll raise a lot of flags.
There’s more things to consider. I say that as a person who has to set up my own company to protect myself when I got freelance clients, and complicated the hell out of my taxes.
Maeve@sh.itjust.works 2 weeks ago
Root Doc Buzzard.
Kolanaki@yiffit.net 2 weeks ago
Probably why fronts are often restaurants. They would have lots of money going in both ways.
Maeve@sh.itjust.works 2 weeks ago
Or car washes? Night clubs maybe.
jpeps@lemmy.world 2 weeks ago
Laser tag is actually the best option.
kmartburrito@lemmy.world 2 weeks ago
There’s always money in the banana stand
slumlordthanatos@lemmy.world 2 weeks ago
That is a pretty good explanation of money laundering, actually.
ArmokGoB@lemmy.dbzer0.com 2 weeks ago
I was looking into doing some mutual “consultant work” with a friend to make it look like I had an income. The taxes wouldn’t have made it viable though.