Question

Barry has a successful methamphetamine laboratory. Producing methamphetamine is illegal under federal law. Is Barry required by law to report the income from his lab on his tax return? Why?

Answer 1

Answer:

Yes, Barry is required by law to report the income from his lab on his tax return.

Explanation:

The provision of Internal Revenue Code (IRC) enacted by US congress give no exception for illegal income tax and where there is no explicit exception, taxable income is all income from whatever source it was derived be it legal or illegal.