Apparently Odom made sense, as the tax attorney he later hired stated that the IRS completely threw in the towel for his fines and fitness claims, and they settled for about 10 cents on the dollar. In the settlement, the IRS agreed to take only $7,827 plus $1,000 in interest. It wasn't a perfect victory for Odom, but against the IRS, it's the equivalent of winning six championship rings (suck it, Jordan). In the end, Odom received a large deduction that we're sure he used wisely.
Such as bribing E! executives to make a second season.
A Drug Dealer Deducts His Drugs
Criminals follow the law pretty leniently, but even they need to stay on top of their taxes; just ask Al Capone. Back in 1975, Jeffrey Edmondson was a drug dealer who was busted and charged with drug trafficking. The IRS, in the mood to add crippling financial debt to a prison sentence, audited Jeffrey for $17,000 in back taxes he needed to pay for failing to declare his income made from drug dealing.
"Sign here, here and here under confessi -- I mean conCESSions."
While awaiting trial, instead of trying to prove the innocence he didn't have, Edmondson filed a tax return that listed his taxable net income and a good list of business deductions, and left his occupation blank. That is because if any of the cops who arrested him found out he was a drug dealer, he would get into so much trouble. The act of putting only one's net income and amount of taxes due on a return is apparently a common practice for drug dealers. It's called the "Fifth Amendment" tax return and also goes by a lesser-known title, the "I'm a drug dealer, and I'll pay your stupid money if you agree not to tell anyone what I do" tax return.
Predictably, the IRS looked at his business deductions, then probably correctly assumed he was high on LSD and ignored them. Edmondson was serious, though, and his tax deduction would go on to the Tax Court. Despite having no receipts to back up his claims, which would've instantly cost him his chance for a deduction today, Edmondson apparently made a lot of sense. He claimed that he established a business in his home, which would've qualified him for a home office deduction, and he named several purchases -- including his drugs -- as necessary business expenses.
There's also the little known "bitches getting up in my grill" assessment.
Judge William Goffe was apparently very impressed with Edmondson's "honesty" concerning his illegal dealings, as well as his logic, so he agreed to deduct his expenses. Some of the things that were successfully deducted were a $50 scale, the cost of 29,000 miles on his car that were used to drive to pick up drugs, 100 pounds of weed and 1 million amphetamine tablets. If you think that was an absurd amount of drugs, you obviously didn't live in the '70s.
And if you don't ... can we please have your autograph, Mr. Richards?
After reading about this, it was easy for drug dealers to get excited at a new chance to save a lot of money that they could spend on hired muscle and flamboyant outfits. Also after reading this, it was easy for U.S. senators to get really pissed off at the ruling. Sen. William Armstrong, R-Colo., was displeased and made it a goal to prevent future drug dealers from having a nice tax loophole. He succeeded. In 1982, the senator managed to get a new tax rule added that disallowed any deduction earned in a business that dealt with the trafficking of illegal substances. So you'll need to go with the huge fake boobs instead.
For more people who walked around perpetually flipping the bird, check out 6 Comic Book Easter Eggs That Stuck It to The Man. Or discover the 9 Insane Cases that Prove the U.S. Legal System Is Screwed.