Report your illegal income!
Old blog content pulled from the Internet Archive Wayback Machine. Source: http://web.archive.org/web/*/http://www.benclark.com/
Illegal income, such as stolen or embezzled funds, must be included in your income on line 21 of Form 1040, or on Schedule C or Schedule C–EZ (Form 1040) if from your self-employment activity.
The IRS sure has some odd requirements (search for “illegal income”) for reporting your income. You must also report kickbacks and other under-the-table income.
