The Chronicles Of Grant County

The Internal Revenue Service is headquartered in Washington, DC. (This photograph was provided courtesy of the U S Embassy In Barbados, the Eastern Caribbean, and the Organization of Eastern Caribbean States.)

In its continuing efforts 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, The Chronicles Of Grant County focuses this edition on items that may beof assistance to leaders within New Mexico.

The Internal Revenue Service (IRS) is considerate enough to highlight some of the difficulties that may be faced by governmental workers, elected officials, and individuals seeking elective offices.

Please note that the advice from the IRS detailed in this news column is not aimed at the decent men and women in governmental positions as they strive to do their best to serve the people of New Mexico and the United States of America.

But for those individuals that may need guidance when it comes to determining if income they take home (or take someplace else – say, to the Cayman Islands, for example) is taxable by the Federal government, this news column aims to provide some important information.

The IRS has stated that the Federal agency is here to help answer questions. Even questions from those that serve the general public or want to serve the general public – while, of course, serving themselves at the same time.

Bribery may be hard to prove in a court of law, but bribes themselves are taxable income.

The IRS Publication 525 (2022), Taxable and Nontaxable Income, noted that "If you receive a bribe, include it in your income."

How about if you're not yet in a governmental office and can't – officially – carry through on any commitment worth a bribe?

There's no specific guidance on this point, but a bribe is likely still a bribe even if you aren't yet officially in a position to influence an activity or a decision that was the reason a bribe was provided to you.

How about if you get a bribe, but you're so corrupt that you don't follow-up on your commitment to be corrupt?

Again, there's no specific guidance on this point either, but taking the bribe – even if you have no intention to honor your corrupt commitment or even if you later change your mind and decide not to honor your word – is likely still a bribe.

In short, whether taking a bribe and following through on your corruption, taking a bribe even though you aren't in a position to implement your corruption, taking a bribe with the intent to not carry through with your corruption, or taking a bribe and later changing your mind to not honor your word are all likely considered the same for the IRS.

You take a bribe.

The bribe is income.

Thus, you owe taxes on the income from the bribe.

How about campaign contributions? Does the IRS consider these funds to be income?

According to the previously noted IRS Publication 525 (2022), the IRS included this statement about campaign contributions: "These contributions aren't income to a candidate unless they're diverted to the candidate's personal use."

So, if you're not already a corrupt elected official running for re-election and one that sees campaign contributions as your own personal piggy bank, you may want to avoid spending money from your political campaign on that new sofa for your living room, that bag of dog food for Butch, or the spa treatment at that fancy retreat in Costa Rica.

Unless, of course, you can prove that the new sofa in your living room is just there for "storage" until you can move it into your campaign office, or if Butch is your "campaign spokesdoggy" ("Ruff!" "Ruff!" "Vote for [Fill In The Blank]"), or if you have to visit Costa Rica to determine how the potential reintroduction of jaguars by the Federal government to southwest New Mexico may impact the lives of local folks.

(You probably didn't think that a trip to a retreat in Costa Rica could be considered a critical campaign expense. Afterall, you do have to look good if you come across a jaguar – whether you're in the wilds of Costa Rica or in southwest New Mexico.)

It may be a better choice to be ethical and only spend campaign contributions on actual expenses that help your campaign.

Please note that no legal advice or tax advice is being provided by The Chronicles Of Grant County.

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