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Hmm, how is blackmail money classified? Gifts are not taxable by the recipient, but if you're being blackmailed, it hardly sounds like you're making a gift. Sim
by adevine 11y ago
Hmm, how is blackmail money classified? Gifts are not taxable by the recipient, but if you're being blackmailed, it hardly sounds like you're making a gift. Similarly, insurance money that "makes you whole" is not taxed, and in this case the money kind of sounded like restitution for abuse.
I'm genuinely curious how this money would be treated by the IRS.
- jahmed 11y agoPayment in exchange for silence? Ordinary income maybe?
- ghshephard 11y agoMoney from blackmail, otherwise known as extortion, is most certainly taxable by the IRS: http://www.irs.gov/uac/Federal-Statutes---Money-Laundering http://www.irs.gov/uac/Federal-Statutes---Money-Laundering