Rakeback, taxes, and an argument for the IRS

[broiler]

The reason that the IRS doesn't send info to the Justice Department on illegal activities is the conflict that they would have with the Fifth Amendment. I think that there may be an old case about this, but that is a vague memory off of the top of my head. If the IRS gave tax return info to the Justice Dept., you would be able to claim Fifth Amendment rights and not file a tax return. The IRS has their own lawyers to try any cases resulting from tax return related issues in order to avoid any conflict.