From
FailBlog.org --
Tax Advice Fail --
In what just might be a sign of impending apocalypse, I just don't see that as a legitimate FAIL.
The IRS is a very successful criminal enterprise which requires projecting fairness and due process (i.e. consistent and
predictable abuse) to all of its victims. This need required a codified bureaucracy to ensure assets are stolen in sustainable amounts (so they could steal more in the long run), and that includes stealing the assets that were already stolen upstream from their efforts.
In most cases the people who report stolen assets will already have been convicted of that crime (or cleared, i.e. double jeopardy), and it would be
in their best interest to report this income along with any other, as the IRS requires. One might expect stolen assets to always be returned to the victims, like as future restitution payments if they were already spent, but the modern legal system has no incentive for that.
What I find most surprising is that a bigger gang of bullies still didn't turn up to make the IRS pay taxes on the taxes they collect...