50 Weird Ways People Go Broke

9. Selling Drugs Without Paying Taxes

Tarpey encountered an IRS auditor who had a two-year assignment going to jails to file convicted drug dealers’ tax returns. With back taxes, fees and penalties, some of those people were bound to owe the IRS substantial amounts of money when they were released. If they weren’t already destined to be broke before, a fat tax bill raised the odds.
“Anyone who is convicted, and therefore on record, as committing a crime where they made money, should file taxes. Not filing that income is a separate crime and a separate liability,” said Tarpey.

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