From a tweet posted by a U.S. citizen, an investigation has been opened to find out if the IRS requires United States residents to report stolen property and illegal activities. The answer can be obtained through the IRS‘s own documents, so it is official information.
Most surprising of all is the answer to the question “Do we need to declare on taxes private property and illegal activities?”. Because some Americans will be shocked to learn what the official IRS confirmation is.
Does stolen property have to be reported to the IRS?
According to Wcnc, the short answer is yes. The IRS requires that we report all stolen property. At least an estimate of what the dollar value of what we have stolen would be. It is not a fight against crime, at least in this sense, but a justification for taxation. In addition, the type of property stolen is not specified, as it is discussed in general.
The exact words we find on the IRS’s own website is that the citizen must “report its fair market value”. This is unless the citizen returns what the person has stolen before filing the return.
What about illegal activities and tax returns?
Apparently, it is also necessary to file income tax returns including money earned through these illegal activities. Anyone who earns money from illegal activities, such as selling drugs, must report their earnings on Form 1040.
Surprising as it may seem, this is nothing more than a strategy to be able to collect money through taxes. So remember that any type of economic gain you have must be reported in the tax year to the IRS.
And it does not matter the type of illegal activity, as it happens with private property, since what matters is the money received as such.