Illegal Income

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Illegal Income

Income from an illegal act. Examples of illegal income include income from theft and drug dealing. Illegal income is taxed in the United States as if it were ordinary income. Interestingly, expenses one incurs in the conduct of an illegal activity (other than drug trafficking) may be tax deductible. For example, the IRS may allow deductions for bribes paid to foreign governments.
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Legalization of illegal incomes requires introduction of some mass of money into circulation.
It grows when others choose to accept the illegal incomes as " perks of the job".
If illegal incomes are saved, there are also behavioral differences.
Instead of simply closing rackets that generate illegal income, the central objective has become to attack the flow of criminal profits after they have been earned.
First, where the threat of detection and loss produces an atmosphere of insecurity, illegal income is more likely than legal to be quickly consumed rather than saved or invested.
If illegal income is used to purchase assets, the preferences are likely to be antidevelopmental.
Faced with these difficulties, governments of affected countries have often chosen to attempt to make illegal income behave more like legal, rather than to find, freeze, and forfeit it.
The projected annual incomes of those reporting illegal incomes ranged from $1,200 to $24 million, with an average of $144,000.
With these points in mind, the income data show high levels of illegal income, most garnered through illegal drug markets.
Illegal Income Frequency Per Year ($) Per Month 0 14 0 100 1 1,200 500 1 6,000 2,000 2 24,000 3,000 2 36,000 5,000 1 60,000 8,000 1 96,000 9,000 1 108,000 12,000 1 144,000 20,000 2 240,000 30,000 1 360,000 50,000 1 600,000 65,000 1 780,000 80,000 1 960,000 500,000 1 6 million 750,000 1 9 million Several million 1 24-36 million?
Median for those reporting illegal income = $12,000
At the international donor conference held in June in Kyrgyzstan it was repeatedly mentioned that law enforcement agencies and courts lack special knowledge and skills in investigation and consideration of criminal cases related with legalization of illegal incomes and financing of terrorism.