According to the Internal Revenue Service, income earned as well from law breaking activity must be officially declared on your taxes.
Individuals who profited immensely from illicit acts such as drug selling or bribery, according to the IRS, must mention 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).
Thieves must also declare the value of the goods they have taken.
The office didn’t say how it would police the regulation, but at least one law enforcement agency has expressed interest in assisting the authorities.
