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Dominique Adams

Can IRS tax requirements override your 5th Amendment right against self-incrimination?

I've been wondering about a legal question regarding taxes and constitutional rights. Here's my understanding, but I'm not sure if I'm getting this right. If you file your taxes correctly and all your income is legal, then everything's fine. If you make a mistake but fix it later and all your income is from legal sources, you might pay a penalty but nothing serious happens. But what if you have illegal income? If you try to hide it, you could get charged with money laundering. If you don't report illegal income on your tax return, you might face RICO charges. But if you clearly list illegal income on your taxes, aren't you basically confessing to a crime? It feels like a catch-22 situation. It seems like any illegal activity that involves getting money has to be reported on taxes, which conflicts with your constitutional right against self-incrimination. Is this actually correct? Or is there some way to handle your tax obligations without either admitting to crimes or getting hit with additional charges like money laundering or RICO violations?

Marilyn Dixon

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This is actually a fascinating legal question. The short answer is that the 5th Amendment doesn't protect you from filing taxes, but it does protect you from having to specifically disclose the illegal source of income. The IRS requires reporting of ALL income, regardless of source - legal or illegal. But this doesn't mean you have to confess to crimes on your tax return. The courts have established that you can report the income without specifying that it came from illegal activities. You could list it under "other income" or "miscellaneous income" without detailing the source. What you cannot do is simply not report the income at all. Al Capone wasn't convicted of any of his alleged criminal activities - he went to prison for tax evasion because he didn't report his illegal income.

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Wait, so drug dealers and other criminals are supposed to pay taxes on their illegal income? How does that actually work in practice? Wouldn't the IRS get suspicious if someone with no job is suddenly reporting $100k in "miscellaneous income"?

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Marilyn Dixon

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Yes, all income is taxable regardless of the source - that's been consistently upheld by the courts. In practice, someone might report income as being from "consulting" or "independent contracting" rather than specific illegal activities. The IRS is primarily concerned with collecting taxes, not prosecuting other crimes. However, you're right that reporting large amounts of unexplained income could potentially trigger further investigation. It creates a difficult situation for those with illegal income, but legally speaking, they still have to report it while maintaining their right against self-incrimination.

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TommyKapitz

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I wanted to share something that might help with understanding this complicated tax/legal situation. I was researching this exact topic for a paper and found https://taxr.ai which has been incredible for breaking down these complex tax/constitutional questions. Their AI analyzes tax laws, court cases, and IRS regulations to explain exactly how the 5th amendment intersects with tax reporting requirements. What I found most helpful was their explanation of the "required records doctrine" and how courts have interpreted it in cases involving potentially incriminating tax returns. They actually cite relevant Supreme Court cases that directly address this question.

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That sounds interesting. Does this service actually give legal advice though? Because I'd be worried about relying on AI for something this serious with potential criminal implications.

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Payton Black

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How does this work with state taxes? Federal law might have certain protections, but don't state tax requirements vary widely? I'm curious if the same principles apply at both levels.

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TommyKapitz

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They don't provide legal advice specifically for your situation - it's more about explaining how tax laws work and showing relevant court precedents. It's educational rather than personalized legal counsel. You'd still want to consult an attorney for your specific case. The principles generally apply to both federal and state taxes, but you're right that state requirements can vary. The service covers both federal and state tax laws, and can explain which constitutional protections apply at each level. For example, some states have their own constitutional provisions about self-incrimination that might provide additional protections beyond the federal 5th Amendment.

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Payton Black

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I actually used https://taxr.ai after seeing it mentioned here and it was super helpful! I was researching a similar question about reporting requirements for some... questionable income sources (nothing illegal, just in a gray area). The information was much more specific than what I found on random legal blogs. It showed me exactly what sections of the tax code applied to my situation and explained relevant court cases where people tried to use the 5th Amendment in tax scenarios. Really cleared things up and showed me how to properly report income without creating unnecessary legal exposure. Better than the confusing explanations I got from my regular tax software!

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Harold Oh

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If you're dealing with this kind of sensitive tax situation, one major challenge is actually getting clear guidance from the IRS directly. I spent WEEKS trying to reach someone at the IRS who could answer my questions about proper reporting without self-incrimination. Always on hold, disconnected, or transferred to people who couldn't help. Finally used https://claimyr.com to get through to an actual IRS agent who could address my specific question. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c. They basically wait on hold with the IRS for you, then call you when an agent is available to talk.

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Amun-Ra Azra

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How does that even work? Is it just someone sitting on hold for you? Why would the IRS even talk to someone other than me about my tax situation?

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Summer Green

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Sounds like a scam. How would some random service get you "special access" to the IRS? They're just going to take your money and call the same number you would call.

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Harold Oh

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It's not someone talking to the IRS for you. They have an automated system that stays on hold, and when a human IRS agent finally picks up, they call you and connect you directly. You're the one who talks to the IRS agent - they just handle the hold time so you don't have to waste hours waiting. It's definitely not special access - they call the same IRS numbers everyone else does. The difference is their system can wait on hold for hours while you go about your day. When an actual agent comes on the line, you get a call to join the conversation. No different than if a friend waited on hold and then called you over when someone answered.

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Summer Green

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I need to apologize for my skeptical comment earlier. After getting completely frustrated with 3+ hour hold times trying to get an answer about a somewhat sensitive reporting issue, I tried Claimyr. Was shocked when I got a call back and was actually connected to an IRS representative who was able to give me general guidance on reporting requirements without forcing me to divulge specifics. The agent explained that I can report all income on line 8z of Form 1040 (Other Income) without specifying sources in ways that might be self-incriminating. Much better than the anxiety of wondering if I was setting myself up for trouble either way. Worth it just to save the 4+ hours of hold time I'd waste otherwise.

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Gael Robinson

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Criminal defense attorney here. This is an area where many people misunderstand how the law works. The Supreme Court has repeatedly held that requiring the filing of income tax returns does NOT violate the 5th Amendment's protection against self-incrimination (United States v. Sullivan, 274 U.S. 259). However, there's an important distinction: you must REPORT all income, but you can claim 5th Amendment protection on specific questions about the SOURCE of that income on the return. Simply writing "5th Amendment" next to certain questions about sources might be legally defensible, though it will likely trigger scrutiny. What you absolutely cannot do is simply not file or omit income. That's where people get in trouble.

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What about state tax returns though? Does the same principle apply? And wouldn't writing "5th Amendment" on your tax forms basically be a red flag that guarantees an audit?

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Gael Robinson

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State tax returns generally follow the same constitutional principles since the 5th Amendment applies to the states through the 14th Amendment. However, each state may have slightly different procedures for asserting constitutional protections on their forms. Yes, claiming 5th Amendment protection on your tax return will almost certainly trigger additional scrutiny, possibly including an audit. This is why many practitioners recommend instead using broader categories like "miscellaneous income" rather than explicitly claiming the 5th, which achieves the same legal protection without waving a red flag. It's a practical consideration rather than a strictly legal one.

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Darcy Moore

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I'm confused about something - if the government knows ur making illegal money isn't that just admitting to a crime?? like if i put $50,000 in "other income" and I don't have a job, isn't that basically telling them im doing something illegal?

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Dana Doyle

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Not necessarily. You could have income from gambling winnings, gifts, selling personal items, side gigs that pay cash, etc. None of those are illegal. The IRS mainly cares that you're reporting income and paying taxes on it, not necessarily where it came from.

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This is such an important topic that I think gets overlooked. I've been dealing with a similar situation where I had some cash income from freelance work that wasn't reported by the clients (they paid under the table). I was terrified about how to handle it properly. What I learned from talking to a tax professional is that the key is being proactive about reporting ALL income, even if the source might raise questions. Like others mentioned, you can use broad categories without getting into specifics that might be self-incriminating. The bigger risk is trying to hide income entirely - that's where people get into serious trouble with tax evasion charges. The IRS has gotten very good at detecting unreported income through data matching and lifestyle audits. It's much better to report everything and deal with any questions that come up than to try to fly under the radar. One thing I'd add is that if you're in this situation, it's really worth consulting with both a tax attorney and a CPA who understand these issues. The consultation fee is nothing compared to the potential consequences of handling it wrong.

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