[MicroBob]

[ QUOTE ]
The critical point is that the IRS cannot share information they have about illegal activities with law enforcement agencies. So whether you are an online poker player, drug dealer, or hired assassin, the prospect of getting arrested for admitting illegal activities to the IRS should not be a deterrent to paying your taxes.

[/ QUOTE ]


didn't read the whole thread so somebody may have brought it up.


But here is my understanding:


You are legally obligated to pay taxes on your income.
you have no choice. You have to.

You also have a 5th amendment right against self-incrimination.

So....lets say your source of income is an illegal activity (drug-dealing, pick-pocketing little old ladies, stealing bikes, whatever).
If the government was able to use your income-tax filings to attempt to prosecute you for the illegal activity then this would contradict your 5th amendment right that you have to not incriminate yourself.

Thus, I believe that it has been worked out somehow (no idea where, when or how....probably a court-decision at some point) that if the government is going to INSIST that you pay your taxes then they can't also use that AGAINST you for prosecution purposes.

Basically, your 5th amendment rights supercede any prosecutorial desire to nail you.



In no way does the fact that you have to pay taxes mean that the government is condoning gambling.

And yes...technically drug-dealers, prostitutes and assassins-for-hire have to pay income-taxes and the government can't come after them in the least.

again...this is technically. No idea how a real hit-man or drug-dealer handles their tax-obligation because certainly they would be reluctant to let them know what they're doing even if they can't technically be prosecuted via their tax-forms.



Also - there hasn't been a single online-poker player who has been prosecuted for online-gambling. And I'm not particularly worried about it.


I am extremely happy that Ed is taking this direction with his article-writing.
I know a little bit about the tax thing...but I know there's a helluva lot I don't know and I expect to learn quite a bit from the future articles.