According to the Internal Revenue Service, money made from criminal activity must be documented on your taxes.
The IRS said that people who made money illegally from things such as drug dealing or bribes have to add that to their 2021 filings. They are instructed to place it on their Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if it’s related to self-employment.
Furthermore, if an individual has taken any property that is not theirs, they must also report the property’s worth on their taxes.
“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 IRS hasn’t stated how they will regulate and enforce this policy. But, the Eerie County Sheriff’s office, in New York, has offered to help car thieves, needing assistance with reporting stolen items on their taxes.
“If you need an itemized list of property call us at 716.858.2903 & a deputy or Detective will be happy to meet you with the list. It would be our pleasure,” a PSA on their Facebook page stated.
