straight up, no ice. via Mary Flood, the chron
different pimp RIP Pimp C
Here’s a tax tip you don’t hear often: Don’t forget to report illegal income from prostitution and other nefarious activities.
That’s what Randall Bradley Jones, 42, of Houston, learned today after pleading guilty before U.S. District Judge Melinda Harmon to one count of tax evasion for failing to inform the IRS about $665,962 in cash he picked up from what authorities said were his six houses of prostitution.
IRS spokeswoman Robin Sabin of Houston suggests Schedule C for the small-business owner and the 1040 line “other income” for the free-lancer. She said this stuff just doesn’t show up on a W2 form.
“You should report your ill-gotten gains just like you report any legal income,” said Sabin.
She said a business name would be fine and that taxpayers needn’t spell out their illegal activity.
“It’s not that we don’t care,” she said. “We want to be able to identify the source.”
Sabin said that, unless someone is suspected of terrorism, the IRS has trouble sharing suspicions of criminal activity and would have to go through a judge to be able to tell another agency of its suspicions.
But, she said, tax-evasion cases involving illegal gain usually come to the IRS the other way — from a criminal investigation done in tandem with another agency or, as in this case, from information from other law enforcement.
“It’s like the Al Capone situation,” Sabin said. “He conducted a lot of illegal activity. It was hard to convict him, though. So what did they get him for? Tax fraud.”