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A little tax help

Old 04-11-09, 11:28 PM
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A little tax help

I know that Publication 17 - Your Federal Income Tax for use in preparing 2008 returns is not much of a page turner, but I was scanning through it and this caught my eye.

On page 89, under classifying other income:
Bribes
If you receive a bribe, include it in your income.
So, you know, if you've received any money illegally, be an upstanding citizen about it and give the government its share.
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Old 04-11-09, 11:39 PM
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Re: A little tax help

People have been prosecuted for not reporting illegally-obtained income. That's how they got Al Capone.
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Old 04-12-09, 12:37 AM
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Re: A little tax help

yeah, even if you are a drug dealer or prostitute, they want you to file based on income. even it it is illegally obtained income. sort of a double standard, but humorous.
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Old 04-12-09, 03:59 PM
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Re: A little tax help

Back in the 1960s, paying bribes to foreign governments was a tax-deductible business expense. I remember my dad laughing when he came to that line in his tax return.
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Old 04-12-09, 04:37 PM
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Re: A little tax help

Originally Posted by Nick Danger View Post
Back in the 1960s, paying bribes to foreign governments was a tax-deductible business expense. I remember my dad laughing when he came to that line in his tax return.
It seems reasonable to me. There are countries where you would have a very hard time competing if you couldn't bribe officials.
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Old 04-12-09, 05:18 PM
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Re: A little tax help

Yes, but it puts the US Government in the position of subsidizing corruption. We should be encouraging honest government around the world. Not only because capitalism works better on a level playing field. More importantly, ordinary people have better lives under honest governments.

There are states in the US where you would have a difficult time competing if you didn't bribe officials. No one would suggest that we should encourage that.
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Old 04-13-09, 01:59 AM
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Re: A little tax help

Originally Posted by Deftones View Post
yeah, even if you are a drug dealer or prostitute, they want you to file based on income. even it it is illegally obtained income. sort of a double standard, but humorous.
Yeah, true but crazy. Can you imagine the IRS doing an audit of a hooker?
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Old 04-13-09, 02:07 AM
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Re: A little tax help

also... you can deduct cost of merchandise for illegal businesses, but you cannot deduct other related business expenses.
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Old 04-13-09, 06:40 AM
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Re: A little tax help

If you could deduct bribes, then it should make sense to be able to deduct traffic fines... They're mostly nothing but legal extortion!
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Old 04-13-09, 07:27 AM
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Re: A little tax help

if you have to report bribes, can you deduct the price of hookers as a cost of doing business?
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Old 04-13-09, 10:26 AM
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Re: A little tax help

Funny, after my rant about corruption, I watched an episode of Frontline about corrupt businesses. It turns out that the bribery fund belonging to British Aerospace is in the Billions. They gave the Saudi ambassador to the US an Airbus wide-body jet. He painted it in the Dallas Cowboys colors.

They will go into a country, like the Czech Republic, and give anybody with any power millions of dollars. Then the country buys weaponry from British Aerospace. When the British Serious Fraud office investigated, Tony Blair personally stopped the investigation.

Last edited by Nick Danger; 04-13-09 at 10:31 AM.
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Old 04-13-09, 10:29 AM
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Re: A little tax help

Originally Posted by filmerp View Post
If you could deduct bribes, then it should make sense to be able to deduct traffic fines... They're mostly nothing but legal extortion!
The Supreme Court says no.

http://en.wikipedia.org/wiki/Public_...es#cite_ref-18
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