selling drugs


Dealt some drugs? Stole some cash? There’s a line on your income tax form to declare it.

As ridiculous as it sounds, the federal government requires that money acquired through illegal means be reported and taxed just like legitimate income. It’s right there on the official IRS tax instructions: ‘Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.’…

…If you tell the IRS you made $1 million from stealing money or dealing drugs, does the agency tip off the cops?

Legally, it can’t, unless a law-enforcement agency gets a court order granting it access to a specific taxpayer’s return. The IRS isn’t supposed to proactively alert other agencies about misdeeds unless terrorism is involved. In that case, it still needs a court order to disclose anything, but the IRS can initiate the legal process on its own….


After all, this IS how they nailed Al Capone.

Avarice Never enough

While perusing the above article, various media reports and IRS regulations on the taxation of alleged illegal activities aka the “Underground Economy,the avarice and thuggery of Barack Hussein Obama and fellow Progressives along with the legalization of marijuana and online gambling, the words “pay to play” and “taxing them to death” kept popping into my head.

Since nothing is ever as it appears with Obama and everything that emanates from his administration is a diversion to cover an agenda far more nefarious, I opted to view the taxation of alleged illegal activities by the IRS through another lens.

embezzlement drugs human trafficking and crack babies

The IRS crackdown, money grab, whatever one chooses to call it is not really about illegal activities such as drug dealing, crack babies, long-term effects of drug abuse, prostitution, human sex trafficking and embezzlement, none of which I condone and none of which Progressives give a damn.

IRS your money the-irs-irs-taxes-hiding-cows-funny-politics-1315162596 Politifake

It is all about the MONEY.  Enter the “Underground Economy”.

IRS’ definition of “Underground Economy”

The underground economy represents income earned under the table and off the books. It can include legal and illegal, or black market, goods, including drug sales, money laundering and warehouse banking schemes. The underground economy is characterized by small, single, entrepreneurial businesses that can receive payment for their goods or services in the form of cash or bartered goods. The main goal is to avoid reporting income and paying taxes to governments….

Below is a list of financial opportunities that the IRS has placed under the category of “underground activity.”  Note that there is nothing illegal about any of these financial opportunities unless, of course, the IRS is not receiving their fair share.

  • used car sales
  • child care/House cleaning/Pet sitting
  • tree trimming/Hauling
  • construction workers
  • yard sales
  • EBay sellers
  • craft fairs
  • selling homemade tamales
  • car repairs in the backyard
  • collecting cans and bottles for recycling
  • selling goods at pawn shops
  • day laborers on street corners
  • at-home hair stylists
  • at-home tattoo artists
  • the Avon lady?
  • Tupperware sales?

Not to give the IRS ideas but in New York, because of the high unemployment rate and lousy economy, pre-teens, teenagers, young men in an effort to earn pocket change legally and mothers trying to feed their families and pay the bills sell cold bottles of water out of ice chests during the summer along busy intersections throughout the city.

In addition, men, women, unemployed or not, who are guilty of nothing more than trying to keep their heads above water or wanting to save enough money to jump start a small business cook and sell dinners from their homes on the weekend.

Any day of the week, one can witness a teenager selling candy bars and gummi bears on the streets of New York so that he or she can have a little change in their pockets or pay their cell phone bill.

What about the grandmother on social security or disability, the widow living off her husband’s pension who knits hats, sweaters or quilts or works as a seamstress to make ends meet. (Oh yell yes, I went there.)

These people are not the rich that Progressives in their dog and pony shows demand pay higher taxes.  They are America’s middle-class and poor, many of whom are barely able to keep their heads above water and if brought to the attention of the IRS, the IRS would undoubtedly demand their fair share from any one of them.

Reading the IRS’ publication entitled  “Cash Intensive Businesses Audit Techniques Guide – Chapter 8” reminded me of the DHS Lexicon labeling Conservatives right wing extremists and domestic terrorists. See screenshot at bottom of this post.

Reading the IRS’ publication entitled  “Cash Intensive Businesses Audit Techniques Guide – Chapter 8” reminded me of the DHS Lexicon labeling Conservatives right wing extremist and domestic terrorist (excerpt below).

….Underground economy workers can be found on community bulletin boards. Theirs will be the handwritten 3×5 cards, or the business cards that do not list a license number when needed. Because they will not advertise in the typical ways, the undergrounder will make flyers to leave on doors and will rely on contacts made at donut shops and local restaurants….

…Undergrounders can best be identified through acquisitions. The most lucrative time to locate underground economy workers is when they use their cash to make significant purchases….

What a nefarious and shiftless lot those undergrounders.  The next thing we’ll hear is that an “undergrounder” can be recognized by the look in his or her eyes (sarcasm).

How many of us can recall as children our families going through hard times?

Hard times during which family members procured a second or third job to supplement the family income?

Hard times during which some of the jobs procured by family were off the books?

Those days are long gone.  The Marxist elites running this country has  the audacity to expect Americans to surrender their principles, dignity, independence and right to make difficult but often necessary decisions, thereby opting for servitude to a Marxist regime over one’s responsibility to family.

In their wave of propaganda, Progressives from Obama down insists, “We need additional revenue.”  They do not concern themselves with jobs, cutting the deficit or the suffering of we, the people.

Obama is only concerns are disarmament and getting his slimy hands on “additional revenue” which happens to be code words for fleecing Americans bone dry.

Obama I want your tax dollars

The smokescreen by a media who gets their talking points from the White House is Obama firing a warning shot across the bow of Americans, a warning that the objective of the Progressive establishment is not just to empty the coffers but the pockets of every American down to the last speck of lint.

At the same time, Progressives will continue to conduct business as usual.  Their comrades, cronies and other bad guys will continue to thumb their noses at the law, the IRS and the American people while remaining untouchable so long as they continue to pad the pockets of corrupt bureaucrats.

Just sign me, taxed enough already.

Source:  Cash Intensive Businesses Audit Techniques Guide – Chapter 8

Publication 17 (2012), Your Federal Income Tax