The Chronicles Of Grant County
Federal Income Taxes
Important Information For Criminals
Part One
The image was provided courtesy of the Internal Revenue Service, 2023.
The Chronicles Of Grant County continues to help residents of Grant, Catron, and Hidalgo Counties as they try to meet the deadline to file their Federal Income Tax Forms for Year 2022.
As you strive to meet the deadline of filing your tax forms, do you ever wonder if crime pays?
Well, of course, for some, crime does pay – at least in the short-term.
Long-term, many people who engage in criminal activities eventually get caught.
Either by law enforcement officials, by a loved one who's been done wrong, or by someone who is really, really upset that you did something bad to them.
(Hint: In most cases, it's better to be caught by law enforcement officials rather than someone who is really, really upset with what you did to them. That individual themselves may be far more evil than you could ever image and might enjoy turning the tables on you. A better option might be to be ethical and not engage in criminal activities.)
Whether you get caught or not, though, the United States of America – in the form of the Internal Revenue Service (IRS) – wants you to pay your fair share of taxes on any income you earn from your criminal pursuits.
That income can be in the form of cash, precious metals, digital currencies, or any number of physical things or properties.
The IRS is considerate enough to provide its Publication 525 to answer questions for all Americans. Even for various types of criminals – drug dealers, corrupt governmental officials, and even for those who enter someone else's home at 3 AM and then "borrow" jewelry, cash, and weapons from the residents living there.
The formal name for this booklet is "Publication 525 (2022), Taxable and Nontaxable Income" with a subtitle of "For use in preparing 2022 Returns."
This publication is available – at no charge – to people who have internet access as well as to those that request a printed copy sent by the U S Postal Service. Please note that you can only get five copies of this publication at no cost from the IRS. (Generosity from the Federal government does have its limits, of course.)
A few items that may be of interest in the "Other Income" section of this publication detail illegal activities.
Many Americans may not realize that both wage earners and the self-employed have to report income on illegal activities. This, even if you don't get a W-2 Form from your employer or you don't get a Form 1099 for your gig work.
"Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity," according to a statement from the IRS.
It may be too late for the Cartel – er, your employer/contacting service – to provide you with a W-2 Form or a Form 1099 – depending on whether you are an employee or working as a contract worker – but do keep this in mind as you put together the needed paperwork to file your Year 2023 tax return in 2024.
Afterall, it's never too early to prepare your critical tax papers.
Please note that if you list your income from drug dealing on Schedule 1 (again, on line 8z), that specific line for "Other income" also asks you to "List type and amount."
Please check with the Cartel's – er, again, your employer's/contacting service's – in-house legal department as to what you should list as "type" on line 8z. If your employer/contacting service – got it right that time – does not have an in-house legal department that is available to answer your questions, you may want to contact an attorney of your own choice or, perhaps, an accountant with certain specialties.
Those professionals may suggest you just list the type of "Other income" as "Other income" or they may have a more interesting word for the "type." Perhaps, "Entrepreneurial Activities" or, if you need to be more precise, "Entrepreneurial Activities – Street Level" or "Entrepreneurial Activities – Club Events."
Please note that no legal advice or tax advice is being provided by The Chronicles Of Grant County.
In the next edition of The Chronicles Of Grant County, details will be provided on taxes due on certain types of income "earned" by governmental workers, elected officials, and individuals seeking elective offices.
Do you have questions about communities in Grant County?
A street name? A building?
Your questions may be used in a future news column.
Contact Richard McDonough at chroniclesofgrantcounty@mail.com.
If your email does not go through, please contact editor@grantcountybeat.com.
© 2023 Richard McDonough