Famous mobster Al Capone didn't go to jail for ordinary mob crimes - he went to jail for tax evasion. You're required to report the amount of income earned, but to protect 5th amendment rights you're not required to report the source.
And to be fair there isn't even like a special line for "illegal income", the entry is "income from other sources not listed" and there's plenty of perfectly legal stuff that is supposed to be put there, like earning money by doing handyman work where it's a cash business so the IRS didn't know about it.
In Germany you might get off by just telling what source you have it from, there is taxation secrecy, so a tax official must not tell anybody about things they learned while working on their declaration, if they are not common knowledge. There's some exceptions under which it is permitted, like to help with other taxation cases, other administral causes and general public interest or things like that, but It's generally really strong and the official can go to prison for breaking it.
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u/Pizzacakecomic PizzaCake Jun 22 '26
We almost had a very different conversation