The number one IRS rule that every taxpayer should remember to avoid tax trouble: you must report all your income, whatever the source. Even illegal sources.
John Guarini, a former Jersey City housing inspector, pleaded guilty to tax evasion on Tuesday. Here’s what he did:
- Accepted cash bribes totaling $20,000 from a government informant in exchange for building permits
- Accepted cash bribe meant for another government official, but then pocketed the money for himself
- Failed to report any of it on his income tax return
Full story here.
These types of criminals are commonly prosecuted on tax fraud grounds, and this particular criminal faces 3 years in prison and fines of up to $250,000.