What's funny is, the IRS really actually does want you to declare all money to have taxes paid.

Even the stuff which is from criminal activity.

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

That is, presumably, someone else's problem if you report money received from money laundering or bribes.

In Canada, the CRA (our IRS) is allowed to tattle on you if the crime they suspect could be “serious criminality”, defined as could involve a sentence of 14 years or more.

So when we legalized marijuana, most of the possible infractions have sentences up to 14 years and that’s no coincidence.

Bringing marijuana across a border? Up to 14 years!

Making an extract? Up to 14 years!

Sharing with a minor? Up to 14 years!