So who is filing as a pro for their 2006 taxes?

[MicroBob]

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I don't know anything about your tax system... but I doubt a hitman can pay taxes and write down he got it by killing people. Can you explain that a little more? In most countries in Europe if you got money, they come and ask you where did you get it? And if they find out the money is from criminal activities, you are screwed. They take all money not just the taxes. I really doubt that in USA is any different.

(Of course I know that playing poker is not problematic, but the point of my post is a something else.)

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I'll try to explain how I THINK the logic works.
I believe I am getting most of this correct even though I don't know all the details. If anyone wishes to correct or expand or clarify then please feel free.
Otherwise, I think we can assume that most of this is at least relatively close to correct for purposes of this discussion:

My understanding of how it works and how it probably came about:

The original constitution in the 5th amendment includes the right against self-incrimination.
You have the right to NOT incriminate yourself of a crime.


I guess it was later that the U.S. implemented the income-tax.
You HAVE to declare tax on your income.
You have no choice in this regardless of what that income-source may be.


okay, so somebody says, "No way. I want to involke my 5th amendment right against self-incrimination. Paying my taxes may incriminate me of something. Therefore, I have every right to not pay my taxes because it says so right there in the 5th amendment."


in order to FORCE people to pay their taxes on their income and not be able to get out of it by claiming that doing so could incriminate themselves, they had to enact language that nothing in the tax forms could be used for incrimination of any of the activities discovered therein.


Thus, you really CAN and HAVE TO pay taxes on income that is even an illegal activity.
Obviously if you are a professional hitman you would probably be wise to come up with some sort of creative way of describing your job. Because I just wouldn't trust the govt to see, "Professional Killer" and not go with that info and not go out and try to catch you in the act.


But with 'professional gambler' they just can't use it against you because it violates your constitutional rights.
Also note that it would be unrealistic to come after 20-million American internet-gamblers anyway but that's besides the point.


Yes, if your income source is from something illegal you really do have to pay taxes on it. And theoretically, if you listed your occupation as drug-dealer they could not use it against you.