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A wise person once told me don't commit misdemeanors while you're committing felonies.
One crime at a time.
Why is this good advise?
Al capone was arrested for tax evation. I think one of the famous serial killers or mass murderers got caught because they were pulled over for something like speeding (granted, they probably would have been caught eventually anyways, but it happened a lot quicker).
Al Capone had no choice but to commit tax evasion, all of his income was illegal.
The IRS says you have to report illegal income and pay taxes on them.
Yes, but when you do, they arrest you for illegal activity. So not reporting is the only real viable option. You can launder it, but they'll still get you for tax evasion if they can