IRS says you better report money from illegal activity in 2023 on your taxes
In 2023, the IRS is cracking down on individuals who earn money from illegal activities and fail to report it on their taxes. The agency is urging individuals involved in illegal activities, such as drug trafficking, money laundering, or other criminal enterprises, to report their income and pay taxes on it.
The IRS has stated that all income, whether obtained legally or illegally, is subject to taxation. Failure to report illegal income can result in severe penalties, including fines, interest, and even criminal charges. The agency has also warned that it has sophisticated tools and methods to track down individuals who are not reporting their illegal income. This includes working with law enforcement agencies and using data analytics to identify suspicious financial transactions.
The IRS’s message is clear: it is better to report illegal income and pay taxes on it than to face the consequences of trying to hide it. By coming forward and reporting their income, individuals involved in illegal activities can avoid further legal trouble and potentially reduce their tax liability.
Overall, the IRS’s stance on reporting income from illegal activities in 2023 is a reminder that all income must be reported, regardless of how it was obtained. Failure to do so can have serious consequences, so it is important for individuals involved in illegal activities to comply with tax laws and regulations.
