The IRS wants to tax your illegal income    @hargreavesCNN March
7, 2013: 12:47 PM ET illegal income 1040  The federal government
requires drug dealers and embezzlers to pay taxes on their ill-
gotten gains. Surprisingly, some do.   Dealt some drugs? Stole
some cash? There's a line on your income tax form to declare it.
As ridiculous as it sounds, the federal government requires that
money acquired through illegal means be reported and taxed just
like legitimate income. It's right there on the official IRS tax
instructions: "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."  Not surprisingly,
tax experts say few criminals declare their loot.  But some do,
often when they've either been caught during that tax year or
think they are about to be caught, says Stephen Moskowitz, a San
Francisco tax attorney at Moskowitz LLP who has helped several
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