Does the IRS say people who steal property must report that in their tax returns?
By Christiana Dillard
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YES
According to Internal Revenue Service Publication 17, you should report stolen property as income.
An IRS spokesperson says the stolen property summary exists because there has not been a tax law passed by Congress to make such income tax-exempt. Therefore, stolen property is considered taxable income.
This fact brief is responsive to conversations such as this one.
Sources
Internal Revenue Service Publication 17 (2021), Your Federal Income Tax - Other Income
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