IRS/drug dealing

Dr. Strangelove · #1 08-01-2006, 05:35 PM

What happens to a drug dealer (that pays all his taxes) when he gets audited? The IRS shows up asking for receipts, verification of income etc.

How does this work?

Pretend we are lazy and have never bothered to launder the money.

cbloom · #2 08-01-2006, 06:07 PM

mattw · #3 08-01-2006, 06:18 PM

al capone was busted for not reporting illegal income, not for illegal activites; big differnce and i think thats what the OP is getting at.

OP: my best guess is that the IRS will look at your assets, income, and expenses and compare it to your tax return. hopefully you will have some kinda of records to support what you claim.

in theory, the IRS cant contact other law agencies regarding info they have discoverded in their investigations. good luck with that one.

NT! · #4 08-01-2006, 06:23 PM

So wait, you move weight and put the money in your checking account?

NT

john voight · #5 08-01-2006, 06:25 PM

write it off as $ you made from poker

soapstar · #6 08-01-2006, 06:35 PM

[ QUOTE ]
write it off as $ you made from poker

[/ QUOTE ]

Kramer: "It's a write-off for them."

Seinfeld: "How is it a write-off?"

Kramer: "They just write it off."

Seinfeld: "Write it off what?"

Kramer: "Jerry, all these big companies -- they write-off everything."

Seinfeld: "You don't even know what a write-off is."

Kramer: "Do you?"

Seinfeld: "No, I don't."

Kramer: "But they do, and they're the ones writing it off."

'Chair · #7 08-01-2006, 06:54 PM

assuming a dealer did pay taxes, I think the optimal way to go about it would be a tax sheltered corp w/ an ebay front ... or something along the lines.

guids · #8 08-01-2006, 07:09 PM

Get an illegal drug tax stamp. Im serious.

Dr. Strangelove · #9 08-01-2006, 11:12 PM

[ QUOTE ]
Get an illegal drug tax stamp. Im serious.

[/ QUOTE ]

"Tell me more..."

guids · #10 08-01-2006, 11:56 PM

Google it, I heard about it a year or so ago, I was looking up some tax laws, and found this article saying kansas has this stamp you can buy and affix to all your products, and if you get caught, tax evasion is one less thing they can get you from, but federally I hae no idea? I dont know much about it, read a few articles, didnt really care to, so I may have come to the wrong conclusions.