The old adage is crime doesn't pay, but one certainly can wonder sometimes about the accuracy of it given the volume of of politicians that seem to be criminals! Regardless, the fact you might be making money from a criminal offense doesn't mean you wouldn't have to pay taxes. Correct. The IRS wants its unfair share of your ill gotten gains! Basic requirements: To end up with the foreign earned income exclusion a particular day, the American expat possess a tax home in one or more foreign cou...