The Answer I Never Expected

[Shalom]

i wonder how she claims that on her taxes?

"Misc. income, source declined."

Years ago my father worked for a public accounting firm which had a few clients that were, shall we say, connected. As a result, he had to prepare a few tax returns that were rather interesting...

There's a rule that even illegal income has to be reported, e.g. bribes received, drug money and the like. I asked him how that can get reported without landing the client in prison, and he gave me the above quote.

Me: Is that legal?
Him: As long as you're not taking deductions against it, it's fine. In effect you're saying, yes, I made this amount of money, I'm paying my taxes on it, and it's none of your business where I got it.
Me: Doesn't that kind of attract official attention?
Him: You don't use that line unless you've already attracted official attention.

The way they catch some of these guys is, they look at their tax returns, and say, OK, you're showing an income of $75k, so how'd you pay for that house with the swimming pool and those Cadillacs? This way, you can show an income that's commensurate with your spending, so they can't get you for tax evasion at least.

[Rapscallion]

I seem to remember a UK brothel madame challenging a tax demand on the grounds that the Customs and Excise would be living off immoral earnings and thus commiting a crime. Can't seem to find a link to it now.

Rapscallion

[Legal Eagle]

brings a new meaning to the term "sucky" customers

[Mr Hero]

brings a new meaning to the term "sucky" customers

True, but if she's not bringing in much business as was already suggested, then wouldn't this be a case where we fail to see the "suck"?

[Andara Bledin]

There's a rule that even illegal income has to be reported, e.g. bribes received, drug money and the like. I asked him how that can get reported without landing the client in prison, and he gave me the above quote.

Hey, they've got rules on how to deduct for a child you've kidnapped, so the whole claiming income from an illegal source doesn't even make me bat an eye.

^-.-^