I almost can't believe Wikipedia has an article on this: http://en.wikipedia.org/wiki/Taxation_of_illegal_income_in_the_United_States http://en.wikipedia.org/w

I almost can't believe Wikipedia has an article on this: http://en.wikipedia.org/wiki/Taxation_of_illegal_income_in_the_United_States http://en.wikipedia.org/wiki/Taxation_of_illegal_income_in_t... > The Internal Revenue Code is not a mechanism for enforcing other codes of law, such as criminal law. [2] A person’s taxable income will generally be subject to the same Federal income tax rules, regardless of whether the income was obtained legally or illegally. Also, Yale Law has a PDF entitled "Taxing Income from Unlawful Activities" (1974): http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?article=3407&context=fss_papers http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?artic... > When income from unlawful activities is reported, the taxpayer often supplies his name, address, and net income (usually in round figures, with such laconic labels as "miscellaneous income" or "income from various sources") and leaves the rest of the return blank. The whole PDF is actually a very interesting historical study of the ins and outs of taxing ill-gotten gains.