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It is not a safe option.
It is designed as a catch all.
The FBI isn’t going through tax returns looking for Illegal income; rather if you’re suspected of illegal activity, they WILL go through your tax returns, because if you didn’t report your illegal income that is another law you’ve then broken. — See Al Capone
So. It is both a very bad idea, and a good idea to report your illegal income
A better idea is to not do anything illegal; or at least do the illegal thing offshore and hide the income there. Like a good multinational corporation would.
What you need to do is report your illegal income in a legal way. Like say you are a life coach, and you advise people.
If it looks extremely questionable, like you're a life coach in Alabama and made 380k, it'll raise a lot of flags.
There's more things to consider. I say that as a person who has to set up my own company to protect myself when I got freelance clients, and complicated the hell out of my taxes.
Probably why fronts are often restaurants. They would have lots of money going in both ways.
Or car washes? Night clubs maybe.
Laser tag is actually the best option.
Oh?
There's always money in the banana stand
That is a pretty good explanation of money laundering, actually.
I was looking into doing some mutual "consultant work" with a friend to make it look like I had an income. The taxes wouldn't have made it viable though.
Would that not be illegal under the fifth or does the right for congress to collect taxes override that?
Oooh. I like that.
I’d think that courts would say that you can’t claim the fifth, since you self reported the illegal income. And that had you failed to claim it, you’d be evading taxes….
So yes. You COULD claim your 5th amendment rights against self incrimination, but then you’ve violated the 16th where you’ve failed to declare income.
Yeah that's what I was thinking. Thank you.
You can only plead the 5th while you're in court. Prosectors are free to use all the shady crap you did that they have evidence of in building a case against you though.
Hi that is not true.