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similar story here, the state attorney generals and the federal tax office had a slug out for that reason, illegal pimps and prositututes were declaring their income and filing returns, but the tax department didnt refer it to the states for prosecution, as far as the tax department was concerned, they arent law enforcement and hence didnt report it..
I suspect this is just another way to pin them incase of a technicality on the pimping laws...
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