Today's Tax Tidbit (TTT)

This is a TTT post. The first of many more if it proves to be popular.

Did you know that the IRS considers any illegal gains to be income? See Treas. Reg. § 1.61-14 (2009).

Make sure you declare your earnings from rum running or pimping to the IRS or risk a nice trip to the pokey (Aside: ACORN offers great advice as to how to maximize your brothel deductions).

UPDATE: No, poor Mr. Snipes did not do anything illegal to earn his money, he simply failed to report and pay tax on his legitimate earnings (well, only if you consider proceeds from the Blade series to be legitimate).