+
Democracy

The IRS requires criminals to report and pay taxes on their illegal income. Yes, seriously.

IRS, taxes, criminals
@litcapital/Twitter

The IRS requires criminals to report their illegal income.

You know how sometimes you see something come through your social media feed and you think, "There's no way that's real," only to then have your mind blown when you find out it actually is real?

This is one of those times.

Twitter user @litcapital shared a post that appeared to be a screenshot from the IRS website with two entries on it:


"Illegal activities. 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.

Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year."

Yes, you read that right. Dealing illegal drugs? Gotta pay taxes on that income. Stealing property? Gotta report that as income.

Surely this is made up, right?

Nope. Go here: https://www.irs.gov/publications/p17. Do a "Find" search with your browser and enter the word "illegal." Then put in "stolen." You'll find the entries listed under "Other Income," worded just like this.

We can all agree that taxes are overly complicated, and few of us have the time to read through every single IRS publication to figure them out. But requiring criminals to report illegal activity and stolen goods on their taxes? Really?

Someone had to actually come up with this policy. Someone had to say, "Hey, I think we should tell criminals that they have to report their criminal profits on their taxes," and someone else had to say, "Yeah, that's a good idea." Someone had to approve it. Someone had to type it up and publish it, too.

Did they all do this with a straight face? Was it a serious conversation? Did any brave soul say, "Um, that's stupid. No one is going to do that," because it's obviously stupid and clearly no one is going to do that?

That was my first thought upon seeing these tax requirements.

However, as it turns out, there actually is a good reason these policies exist. Illegal income does get reported sometimes, namely when someone has been caught (or thinks they're about to be caught) in some illegal activity and they don't want to get hit with a tax evasion charge in addition to whatever financial or property theft crime they've committed.

According to CNN Money, New England accountant Tom Hughes paid taxes on money he stole from his clients in 1999, 2001 and 2004. "I knew the money was taxable, there was no doubt about that," Hughes told the outlet. "I had already been caught, and I didn't want to face federal tax charges."

He now gives speeches on financial crime and professional responsibility. Go figure.

However, Hughes is the exception, as tax experts told CNN that most criminals don't report their illegal incomes. Duh. According to San Francisco tax attorney Stephen Moskowitz, most of those who do are facing embezzlement charges and are trying to avoid Al Capone-ing themselves. He has helped some of those clients document their illegal gains to avoid doubling their legal trouble due to illegal tax activity.

So basically, we have to have official tax requirements for illegal income in order for criminals to not be able to get away with tax evasion for that income. Still seems like a bizarre policy to actually write out in words, though, even if it makes sense from a legal perspective.

Humans are weird and money is weird and both things just seem to keep getting weirder. Yay us.

True

In a flurry of heavy headlines that constantly inundate our feeds, acts of good connect us back to our faith in humanity. Witnessing just one person go out of their way to make the world a better place is a powerful healing salve against apathy. It reminds us all of what we are collectively capable of creating. This is the philosophy that Upworthy wholeheartedly believes in, hence why we’re always sharing uplifting stories of people giving kindness, generosity and support to their fellow humans.

That’s also why we’re partnering with P&G, the maker of some of our favorite household products like Tide, Always and Pampers, to bring you the 2023 Acts of Good Awards, and celebrate the individuals who are giving back and strengthening their communities.

Think of it like the Oscars of kindness. Half as formal but twice as feel-good.

Besides providing the world with brands we know and trust, P&G is a company doing good acts, whether it’s supporting hygiene education, helping struggling communities gain access to basic necessities or delivering essentials for families impacted by disasters.

Keep ReadingShow less
Joy

18-year-old took her college savings and bought the restaurant where she was a dishwasher

Samantha Frye, the newest owner of Rosalie's restaurant, is proving there's more than one way to invest in your future.

Canva

There are many way to invest in your future

Eighteen year old Samantha Frye has traded college life for entrepreneurship, and she has no regrets.

Frye began working at Rosalie's Restaurant in Strasburg, Ohio at 16 as a dishwasher, working up the ranks as a kitchen prep, server, then line cook. All while working a second job, sometimes third job.

After graduating high school, Frye started college at Ohio State with plans of studying business or environmental engineering. But when she came back to work a shift at Rosalie’s for winter break, an opportunity arose—the owners had planned to sell the restaurant.
Keep ReadingShow less
Sponsored

ACUVUE launches a new campaign to inspire Gen Z to put down their phones and follow their vision

What will you create on your social media break? Share it at #MyVisionMySight.

True

If you’ve always lived in a world with social media, it can be tough to truly understand how it affects your life. One of the best ways to grasp its impact is to take a break to see what life is like without being tethered to your phone and distracted by a constant stream of notifications.

Knowing when to disconnect is becoming increasingly important as younger people are becoming aware of the adverse effects screen time can have on their eyes. According to Eyesafe Nielsen, adults are now spending 13-plus hours a day on their digital devices, a 35% increase from 2019.1. Many of us now spend more time staring at screens on a given day than we do sleeping which can impact our eye health.

Normally, you blink around 15 times per minute, however, focusing your eyes on computer screens or other digital displays have been shown to reduce your blink rate by up to 60%.2 Reduced blinking can destabilize your eyes’ tear film, causing dry, tired eyes and blurred vision.3

Keep ReadingShow less
Joy

Dog owner dressed up as dog's favorite toy and his reaction was seriously adorable

The life-sized Mr. Quackers was almost too much joy for Charlie to handle.

Charlie the golden retriever got to experience a life-sized Mr. Quackers and it was sheer joy.

The first thing you need to know about Charlie the golden retriever is that he loves Mr. Quackers.

Mr. Quackers is Charlie's stuffed yellow duck. Charlie carries him around everywhere, he loves him so.

@charliethegolden18

I always so happ to see my lil bro 😋 #dogsoftiktok #petsoftiktok #dogs #goldenretriever




Keep ReadingShow less
Joy

13-year-old uses a slingshot to rescue his little sister from being abducted

He had two projectiles and both hit the suspect, forcing him to drop the little girl.

Owen Burns, 13, rescued his sister from a would-be abductor using a slingshot.

A parent never wants to imagine what would happen if their child were confronted with someone meaning them harm. We do everything in our power to mitigate the risks of things like that happening, but scary situations still occur that can leave a family irreparably broken.

A Michigan family had an extremely close call when their 8-year-old daughter was nearly abducted while playing in their backyard. The little girl was outside picking mushrooms when a 17-year-old boy picked her up with his hand over her mouth. Owen Burns, 13, was inside playing video games when he heard his sister scream. A lot of kids in his situation may not have known what to do, but Owen quickly jumped into action.

The teen saw what was happening out the window and picked up his slingshot and a marble before taking aim at the boy who had his sister.

Keep ReadingShow less

Dad knows lots of things … just not who this Taylor Swift guy is.

There are many traditional staples of fatherhood—love, support, protection, security, providing an example—but there is, of course, that other not-so-warm-and-fuzzy feeling that dads can provoke in their kids at any given moment … sheer, utter embarrassment.

Usually in a father’s humiliation tool belt is the infamous dad joke. These corny puns have been around since 2003, and let’s face it, they’ll never leave. Of course, no dad needs one to make your eyes roll. They can do that most of the time simply by being themselves.

For his well-known #Hashtags segment, Jimmy Fallon asked his “Tonight Show” audience to share “funny, weird, or embarrassing” stories about their dads. Fallon, a father himself, is no stranger to the cringeworthy power of a dad joke. In a 2020 interview with TODAY, Fallon admitted, “I’m starting to get the eye rolls now where Daddy’s not the funniest person in the world.”

Keep ReadingShow less
Health

Relationship expert shares her advice on how to 'stop an argument in its tracks'

She has the perfect question to ask once your partner gets defensive.

Therapist Lauren Consul has one trick to stop arguments before they begin.

Arguments start to take off when one partner begins to get defensive. So, therapist Lauren Consul shared her relationship-saving tip to "stop an argument in its tracks" when one partner goes into self-preservation mode.

Lauren Consul is a couples and sex therapist who’s developed a following of nearly 160,000 people on TikTok and has received over 5.4 million likes. She is an infidelity expert and hosts retreats to help people "survive and thrive" after one partner has strayed.

Keep ReadingShow less
Family

My family of 5 traveled the U.S. for nearly a year, and it cost us less than staying home

It's amazing what a little creativity and willingness to step outside the box can do.

Photo courtesy of Annie Reneau

We made countless memories during our slow travel year.

Whenever people share money-saving life hacks like living on a cruise ship or exploring the country via the #vanlife, I see comments like, "That might work for a single person or a couple, but what if you have kids?"

When our kids were 12, 8 and 4, we packed up all of our earthly belongings and spent a year living around the U.S. And no, we didn't live in a van or RV. (Nothing wrong with that life, it just wasn't for us.) We traveled from coast to coast, seeing and experiencing the vast array of gorgeous landscapes and fascinating sites America has to offer, and the best part is we did it for less than what we would have spent staying home.

Was it easy to plan and execute? Not exactly. But was it worth it? Absolutely, hands down, 100%.

Here's how we did it and what we learned.

Keep ReadingShow less