Don't Forget To Cut Uncle Sam In On Your Illicit Earnings | newrevolutionventures's Blog

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Note: I am not condoning in any way illegal activity. The following post is based on my observations.

Enter our "poster-boy" for criminal tax evasion: Alphonse Gabriel "Al" Capone (January 17, 1899 – January 25, 1947).

Capone was notorious during the Prohibition Era for his control of large portions of the Chicago underworld, which provided the Outfit with an estimated US $10 million per year in revenue.

Although never successfully convicted of racketeering charges, Capone's criminal career ended in 1931, when he was indicted and convicted by the federal government for income tax evasion.

Interesting to note: his business card reportedly described him as a used furniture dealer.

Forward to present day:

If you're going to be dealing in drugs, sale of stolen goods, extortion, or any number of illegal business ventures, make sure your wealthy lifestyle is congruent with what you claim as your employment.

Here's where your problem lies: The last job you had was flipping burgers at McDonald's, and you haven't filed a tax return in 5 or 6 years, but you're living in a million dollar house, driving a $75,000 Hummer.

When your county tax assessor comes around to measure your house for property tax purposes, these lifestyle vs income "incongruencies" will be made obvious. How will you be able to rationalize to the IRS how you are living this wealthy lifestyle when the last job you filed taxes on was a burger flipper. Good luck with that one!

The solution:

Get organized and pay your taxes! With getting organized, Set yourself up as a legitimate business. File you Articles of Incorporation to create a corporation. or file Articles of Organization to create an LLC (Limited Liability Company). This will also separate you legally from your "business assets". If you have dealers, runners, spotters, etc. set them up as "employees" create an ADP account for payroll. Remember, most of your outgoing expenses will be tax-deductable; which will minimize the actual amount you pay to the IRS. File your quarterly and annual taxes on schedule and accurately.

My point in all this is you can pretty much deal in anything you want as long as on paper you appear legitimate. At least it will divert the gaze of Uncle Sam.

Oh yeah, don't forget to read up on the RICO (Racketeer Influenced and Corrupt Organizations)act of October 15, 1970. It's the law that Rudolph "Rudi" Giuliani used to bring to justice key organized crime figures. Regardless of how "legitimate" you look on the outside and on paper, you could still be hit with a RICO suit and thrown in the clink for a good long time!

When all is said and done, DON'T BREAK THE DAMN LAW!! you'll always lose eventually.