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Income from illegal activities, stolen property must be reported on taxes, IRS says

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Posted at 1:52 PM, Dec 29, 2021
and last updated 2021-12-29 15:52:09-05

WASHINGTON — According to the Internal Revenue Service (IRS), income earned from criminal behavior must be declared on your taxes.

Individuals who profited from illicit acts such as drug dealing or bribes, according to the IRS, must include it in their 2021 tax returns. If it comes from a self-employment activity, it should be reported on Schedule 1 (Form 1040), line 8z, or Schedule C (Form 1040).

"If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year," the IRS said.

The department didn't say how it plans to enforce this policy.