Further proof our government hates the small businessman

From IRS Tax Court. (Sue found this while researching one of her tax classes.)

Docket No. 26641-81, 50 TCM 538

The gross income of a convicted hashish importer was properly determined by the IRS without any reduction for amounts that were allegedly shared with unidentified co-conspirators. His contention that he received only $185,000, and not a full $1,510,576, was not credible because (1) he paid over $400,000 to others who played a lesser role in the criminal activity and (2) his living expenses incurred after the importation of the hashish exceeded the amount that he willingly admitted receiving. Evidence of failure to file tax returns and report substantial income from criminal activities supported the IRS’s imposition of a fraud penalty.