>>>This is a night and day comparason but wouldn't it be the same as a drug dealer admiting he sold drugs for a living but decided he wanted to pay taxes on his income?

Believe it or not, many people involved in illegal activities do report the income and pay taxes. In many cases the money is "laundered" or passed through various entities to make it hard to track to a source or depending on the activity simply reported outright on the 1040.

By reporting the income they not only avoid tax evasion charges and penalties but they create an income history that may be necessary to substantiate a lifestyle, acquire loans, establish credit, fund pensions, etc.

To disguise what they are doing, a prostitute might be classified as an "entertainer", a drug dealer might be an "importer", theives are "security consultants", bribes are "consulting fees" etc. You get the idea.

You would be amazed at how many "criminals" are advised and represented by very expensive legal counsel and accountants.

On the other hand, I could just be making all this up and it never really happens