12-06-2019  12:21 am   •   PDX Weather    •   SEA weather  
  • 1
  • 2
  • 3
  • 4

NORTHWEST NEWS

Black Food Professionals See Opportunities to “Scale Up” in School Cafeterias and on Store Shelves

Two Portland women are addressing disparities in the local food scene with Ethiopian and Haitian flavors, ingredients

Portland Fire Chief Sara Boone Climbing Historic Ladders

In 1995, Boone was the first African American woman hired by Portland Fire & Rescue; this year she became its first African American Chief

Christmas Tree Shopping is Harder Than Ever, Thanks to Climate Change and Demographics

For Christmas tree farms to survive, shoppers will need to be more flexible

November Holiday Travel at PDX Brings More Comfort, Convenience and Furry Friends

If you’ve not been to Portland International Airport in a few months, you’re in for some surprises.

NEWS BRIEFS

Conservation Breakthrough for Endangered Butterfly

The Oregon Zoo's breeding success provides new hope in an effort to save Oregon silverspots ...

Meet 80 Local Authors at OHS 52nd Holiday Cheer Book Sale and Signing

This free Oregon Historical Society event will be held this Sunday, December 8 from 12 p.m. – 4 p.m. ...

Need for Blood Doesn’t Stop for Holidays – Donors Needed

Those who come to give through Dec. 18 will receive a Amazon.com Gift Card ...

North Carolina Court Decision Upholds Removal of Confederate Monument

Lawyers argued that the monument was installed at the end of Reconstruction to further the false “Lost Cause” narrative,...

Artist Talk with 13-year-old Local to be Held This Tuesday, Nov. 26

Hobbs Waters will be discussing his solo exhibit “Thirteen” at The Armory in Portland ...

Man who 'freaked out’ on plane, forced landing pleads guilty

PORTLAND, Ore. (AP) — A Washington man who ingested methamphetamine before getting on a plane in Seattle and had what a prosecutor called a "freak out'' on board pleaded guilty Thursday to interfering with crew members after the California-bound flight was forced to land in Portland.The...

Owners of Thai restaurant chain get prison for tax fraud

SEATTLE (AP) — A couple that used software to hide more than jumi million in revenue at the Thai restaurant chain they owned have each been sentenced to several months in prison and ordered to pay thousands of dollars in fines.The U.S. Attorney's Office in Seattle said Thursday that Chadillada...

Missouri fires football coach Barry Odom after 4 seasons

KANSAS CITY, Mo. (AP) — Missouri fired football coach Barry Odom on Saturday, ending the four-year stay of a respected former player who took over a program in disarray but could never get the Tigers over the hump in the brutal SEC.The Tigers finished 6-6 and 3-5 in the conference after...

Powell, Missouri snap 5-game skid with win over Arkansas

LITTLE ROCK, Ark. (AP) — In a game started by third- and fifth-string quarterbacks, the outcome was decided by one of their backups. It was appropriate enough for Arkansas and Missouri, two teams facing their longest losing streaks in decades.Fayetteville High School graduate Taylor Powell...

OPINION

Will You Answer the Call for Moral Revival?

In embracing and expanding the legacy of Dr. Martin Luther King, Jr., Revs. Barber and Theoharis have asked Presidential candidates to consider a debate that focuses exclusively on poverty ...

What I’m Thankful For This Season

Ray Curry gives thanks for a human right that shaped our country throughout the 20th century and that made Thanksgiving possible for so many Americans who, like him, didn’t get here by way of the Mayflower ...

Congressional Black Caucus Members Visit U.S.-Mexico Border: “Mistreatment of Black Immigrants is Another ‘Stain on America’”

Members said they witnessed first-hand the deplorable treatment and plight of Black immigrants ...

Portland, I'm Ready

Last month I had the privilege to stand with hundreds of supporters and announce my intention to run for re-election ...

AFRICAN AMERICANS IN THE NEWS

Kansas judge accused of bigotry, profanities in courthouse

WICHITA, Kan. (AP) — A foul-mouthed Kansas judge accused of bigotry and racism who cursed at courthouse employees so often that a trial clerk kept a “swear journal” documenting his obscene outbursts is facing complaints that his conduct violates the central judicial canons of...

Buttigieg backs black leaders after Indiana event disrupted

HENNIKER, N.H. (AP) — Democratic presidential candidate Pete Buttigieg is applauding African American leaders in his home city for “speaking their truth” after a protester disrupted an event held to demonstrate black support for the mayor in South Bend, Indiana.African American...

Panel calls for Virginia to purge dozens of old racist laws

RICHMOND, Va. (AP) — The laws are still on the books in Virginia: Blacks and whites must sit in separate rail cars. They cannot use the same playgrounds, schools or mental hospitals. They can’t marry each other either.The measures have not been enforced for decades, but they remain in...

ENTERTAINMENT

Timberlake apologizes to wife for ‘strong lapse in judgment’

NEW YORK (AP) — Justin Timberlake has publicly apologized to his actress-wife Jessica Biel days after he was seen holding hands with the co-star of his upcoming movie.The pop star and actor wrote Wednesday on Instagram that he prefers to “stay away from gossip as much as I can, but...

Veteran producer of 'WarGames,' 'Blue Bloods," dies at 85

LOS ANGELES (AP) — Leonard Goldberg, a network and studio executive and producer whose TV credits ranged from “Starsky and Hutch” in the 1970s to the current drama series “Blue Bloods” and whose independent movies included “WarGames” and...

'Once Upon a Time,' 'Portrait' top AP's 2019 best films list

Associated Press Film Writers Lindsey Bahr and Jake Coyle name their choices for the best films of 2019.LINDSEY BAHR1. “Once Upon a Time...in Hollywood": Quentin Tarantino’s movie business fairy tale, featuring all-time performances from two of our great living movie stars, and the...

U.S. & WORLD NEWS

Mitchell Trubisky helps Bears beat Cowboys 31-24

CHICAGO (AP) — Mitchell Trubisky and the Chicago Bears appear to be hitting their stride, even if it might...

R. Kelly charged with paying bribe before marrying Aaliyah

NEW YORK (AP) — Federal prosecutors are accusing singer R. Kelly of scheming with others to pay for a fake...

Chase with stolen UPS truck ends with shootout, 4 dead

MIRAMAR, Fla. (AP) — Four people, including a UPS driver, were killed Thursday after robbers stole the...

Paris police arrest scores amid strike over pension reform

PARIS (AP) — Paris police fired tear gas at demonstrators Thursday as the Eiffel Tower shut down,...

Greta Thunberg reaches Madrid for climate activists' march

MADRID (AP) — Climate activist Greta Thunberg has arrived by train in Madrid, where a global U.N.-sponsored...

Young and old march in unity, fear at French pension change

PARIS (AP) — Anger, solidarity, tear gas and frozen noses.That pretty well sums up the atmosphere inside...

McMenamins
Steve Hargreaves CNN Money

NEW YORK (CNNMoney) -- Dealt some drugs? Stole some cash? There's a line on your income tax form to declare it.

As ridiculous as it sounds, the federal government requires that money acquired through illegal means be reported and taxed just like legitimate income. It's right there on the official IRS tax instructions: "Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity."

Not surprisingly, tax experts say few criminals declare their loot.

But some do, often when they've either been caught during that tax year or think they are about to be caught, says San Francisco tax attorney Stephen Moskowitz, who has helped several clients document their illegal gains. Their goal is to avoid getting charged twice: once for their initial crime, and again for evading the taxes on their windfall. After all, it was tax charges that ultimately put away Al Capone.

Many of today's criminals who choose to declare their illegal income are facing embezzlement charges, according to Moskowitz.

Like Tom Hughes, a New England accountant who was caught -- multiple times -- stealing money from his clients.

"I knew the money was taxable, there was no doubt about that," says Hughes, who now runs an anti-fraud consultancy called Hire-a-thief. "I had already been caught, and I didn't want to face federal tax charges."

He paid taxes on his illegal gains in 1999 and 2001, and again in 2004, after he stole from another client. After a nine-month prison stint, Hughes swears he's now reformed.

So how many self-confessed crooks does the Internal Revenue Service deal with each year? The agency isn't saying. A spokesman declined to discuss the issue, saying only that declaring illegal income "is what the law requires."

Documenting illegal income is tricky, Moskowitz says.

The IRS doesn't require any details on the return beyond an approximation of how much you made. The hard part comes if you get audited. There's usually no paper trail, so IRS agents will typically ask for the names and contact information for people that may have been part of the illegal transaction, Moskowitz says. The agency will then try to verify your numbers with them.

If you tell the IRS you made $1 million from stealing money or dealing drugs, does the agency tip off the cops?

Legally, it can't, unless a law-enforcement agency gets a court order granting it access to a specific taxpayer's return. The IRS isn't supposed to proactively alert other agencies about misdeeds unless terrorism is involved. In that case, it still needs a court order to disclose anything, but the IRS can initiate the legal process on its own.

The rules are all spelled out in an IRS guide to "section 6103," the law that covers tax-return confidentiality. Like many legal statutes, it's complex and filled with loopholes. For example, the IRS might not be allowed to share the contents of actual tax returns on its own initiative, but it can divulge supplemental information obtained from outside sources -- like witnesses interviewed in an audit investigation -- "to apprise federal criminal law enforcement agencies of possible crimes," according to the agency's guide.

In practice, Moskowitz says he thinks information about illegal activities gets shared.

"Do they report you to other agencies?" he asks. "Absolutely."

Other experts agree.

"The IRS would most certainly immediately report it to law enforcement," says Joseph Henchman, vice president of legal and state projects at the Tax Foundation, a think tank.

The IRS' spokesman declined to comment on the issue.

Here's one upshot to declaring ill-gotten gains: If taxes are paid on it initially, and restitution is part of any settlement or judgment, that restitution is then tax-deductible, says Moskowitz.

If you decide to disclose your illegal loot, make sure to do it with the assistance of a tax attorney, not any old accountant.

"If there's anything we suspect is criminal, the first thing we do is tell people to get legal advice," says Gil Charney, principal tax researcher at H&R Block's Tax Institute. "We don't have attorney-client privilege. If The IRS or any law enforcement agency contacts us, we have to provide that information."

 

mlkbreakfast2020 tickets 300x180

Martha Redbone Trio
Crown Royal Boss Play the Game
Calendar

Photo Gallery

Photos and slide shows of local events