The IRS requires that tax payers report income from stolen property and illegal drug sales on their tax form.

"Stolen property. 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."

"Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity."

https://www.irs.gov/publications/p17