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Stolen property, income from illegal activities must be reported on taxes, IRS says

Income made through criminal activity must be reported on your taxes, according to the Internal Revenue Service.

The IRS said individuals who earned a profit from illegal activities, such as drug dealing or bribes, must include it in their 2021 filings. It is to be included in Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from a self-employment activity.

Additionally, thieves must report the value of the property they stole. 

fa7b4a49-Panel Recommends Major Tax Law Changes

Current federal tax forms are distributed at the offices of the Internal Revenue Service on Nov. 1, 2005 in Chicago, Illinois.(Photo Illustration by Scott Olson/Getty Images)

"If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year," the IRS said.

The office didn’t offer details on how it would enforce this policy, but at least one law enforcement agency is willing to help the feds with the cause.

The Erie County Sheriff’s Office posted a cheeky PSA to Facebook offering to assist "all car thieves" report property they stole on their taxes.

"If you need an itemized list of property call us at 716.858.2903 & a Deputy or Detective will be happy to meet you with the list," deputies said. "It would be our pleasure."

This story was reported from Atlanta.