NewsFact or Fiction


Fact or Fiction: IRS requires reporting stolen goods?

Posted at 9:24 PM, Dec 28, 2021
and last updated 2021-12-29 00:24:35-05

(KGTV) — A social media post going around appears to be a guidance from the IRS claiming you must report any income from illegal activities such as dealing drugs and if you steal property, you must report its fair market value unless you return it.

This is all true.

The IRS’ 2021 Federal Income Tax Guide clearly states you must report anything you steal, unless you return it to its rightful owner in the same year.

Also income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1.