Your Tax Question - 025

Dear John, I have heard that the IRS actually taxes money that is made illegally. Is this true or was my leg just being yanked. Really, Ken
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Dear Ken,

I find it humorous that you would ask this question but the funniest part is that I actually know the answer to this question. According to the IRS, under the heading of Gambling Income (And Other Gains), gains made on illegal activity is actually a taxable event. However, I would have to have this verified with your legal counsel.

Best of luck,
John

PS. I know a Tax Attorney. Email me