4. Stolen Property
If you staged an at-heist last year, embezzled money, or robbed a bank, you’ll get taxed on the proceeds. In other words, income from criminal activities, such as money from dealing illegal drugs, is taxable and must be included in your income. Bribes are also taxed.
Of course, few criminals report their ill-gotten gains on their returns. But if you’re caught, you’ll be found guilty of tax evasion. While the IRS doesn’t pursue these types of felony cases for many people, the penalty for those caught is harsh.
That’s what happened to well-known gangster Al Capone, who was sentenced to 11 years in federal prison. According to the IRS, he never filed a tax return.
