The IRS gained attention for its Publication 17 (2021) on federal income tax rules for individuals. Here is the portion that raised eyebrows:
If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year.”
We will see how honest the criminals are I suppose when it comes to tax season.
Oh, and just to be clear, income from illegal activities like drug dealing is also required to be included on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040).