Taxation of illegal income in the United States

The Supreme Court held that an embezzler was required to include his ill-gotten gains in his "gross income" for Federal income tax purposes.

While embezzlers, thieves, and the like are forced to report their ill-gotten gains as income for tax purposes, they may also take deductions for costs relating to criminal activity.

No business deduction is allowed "for any payment made, directly or indirectly, to an official or employee of any government [ . . . ] if the payment constitutes an illegal bribe or kickback

Taxation of illegal income in the United States - Wikipedia, the free encyclopedia

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