Form 1040 Schedule C Ez For 2012: Fill & Download for Free

You can claim found money to the IRS. Income need not be legitimate or legal to be declared to the IRS, declaring it is required by law, and declaring it to the IRS will not make it legitimate or legal."Found" money would qualify as other income reported on Line 21, along with illegal income.Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.Source: Publication 525 (2012), Taxable and Nontaxable IncomeFound cash would be more similar in nature to embezzlement income than drug income, which is also reported on Line 21.Putting a figure on line 21 does not indicate illegal income, it's a catch-all for many types of miscellaneous income. The reporting requirement would be much more nefarious if they had an explicit line number for illegal income.The IRS return is confidential. It can be disclosed under court order, but they can't alert law enforcement unless it involves terrorism, so in theory no agency would know to file a court order to have it disclosed.That assumes you trust the IRS. The IRS has a criminal division that often engages in asset forfeiture profit-sharing with the Department of Justice on many criminal proceedings, so there's a clear conflict of interest.What's unclear is if they want to audit the amount of illegal income, whether you can claim the 5th Amendment against self-incrimination.The process of legitimizing found cash does not involve the IRS, but by declaring it you will at least not be charged with tax evasion in addition to any other crime there may be for not reporting found cash.If you wish to instead report cash found and try to obtain legal right to it, that is a different question. See Lost, mislaid, and abandoned property. You would not want to pay taxes on it until you have secured legal rights to it, but that means you may not take control of the funds (you owe taxes the moment you take control of the funds). Using a lawyer and an escrow service would be recommended.If you did pay taxes on it, you would not receive a refund in order to return the cash to the rightful owner or to satisfy a government forfeiture order, you'd get a deduction against future taxes, which may make you insolvent.

Very simple! It shall only cost you taxes on your annual income bracket.Publication 17 (2012), Your Federal Income TaxHere the IRS lets you pay taxes and declare such incomes as:(Believe it or not, ITS TRUE!)Bribes. If you receive a bribe, include it in your income.Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.Kickbacks. .You must include kickbacks, side commissions, push money, or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040), if from your self-employment activity.Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner.Here are many examples of shady income that you can declare. Although if you want to be creative in the list you can see many plausible justifications for such income which are very innocuous.These are the most controversial. I wonder if Obama to deal with the fiscal cliff will start accepting to tax income from hitmen, extortions, kidnappings etc.