[ryanwanger]

Interestingly, a lot of people who were making a living from online poker WERE paying taxes on that money. Come April 15th, the IRS doesn't care how you got it.

[anonymoushn]

If you report income as coming from sale or manufacturing of illegal drugs (or similarly illegal organized crime type business), you go to gaol. I'm not sure how to properly report drug money on a tax return, though.

[redthrowaway]

>I'm not sure how to properly report drug money on a tax return, though.

You don't, they just nail you for tax fraud (a felony) when you go down.

This is just a way to prosecute people without having to collect all that pesky evidence.