[Oimie]

I am studying REG and I was just wondering if an individual reports income from selling illegal drugs on their tax return, will they be arrested? Cause if so, I wonder who will be stupid enough to report it. I tried Googling it but couldn’t find an answer.

FAR 85 June 2015
AUD 80 Nov 2015
REG 83 Nov 2015
BEC 79 Feb 2016

[Oimie]

@taxgeek83: Thank you! That was the type of answer I was looking for!

FAR 85 June 2015
AUD 80 Nov 2015
REG 83 Nov 2015
BEC 79 Feb 2016

[Skynet]

Oimie, I recommend watching “Weeds” the entire series. Should help answer your question.

[Track55]

Back when the “A-Team” tv series was on, they mentioned that even they paid taxes.

Nothing wrong with breaking out of a military prison, sneaking your friend out of the hospital, and spending years blowing stuff up while being chased by the military police. But don't even dream of not paying your taxes!!

AUD - 74, 99 !!
REG - 74, 92
BEC - 83
FAR - 73, 86

Studying for Ethics exam

California candidate
Business and Industry

[Anonymous]

You can deduct COGS But not business expenses. This is why the legal places in Colorado are getting crushed with federal taxes, putting some in a marginal tax rate of 70% or more. See IRC section 280e.

[jm962011]

The legal places in CO are also getting hit with fees because the meet the threshold requirements to pay their taxes via EFT but can't get bank accounts so the IRS hits them with a fee when they pay with a coupon and check.

[Mustang13]

You definitely have to pay taxes on what you make. I forget the name of the famous american gangster that was arrested not for being a gangster, but for tax evasion. They couldn't prove he had done anything illegal via the gang but they could prove that he was making money but not paying taxes.

Whether you are the lion or the gazelle, when the sun comes up, you'd better be running.

AUD 73,77
BEC 74,76
FAR 66,79
REG 74, 81

[taxgeek83]

@Mustang – Al Capone. Watch The Untouchables. 🙂

[Author]

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