If someone paid you one hundred thirty thousand dollars to remain quiet about something do you need to declare it as income on yearly taxes?

Assuming the hush money is a bribe, yes, the IRS considers this your obligation.

"IRS Guidance for Thieves, Drug Dealers, and Corrupt Officials"

"Bribes. If you receive a bribe, include it in your income."

https://taxfoundation.org/irs-guidance-thieves-dru...

Do you want to pay taxes on that bribe? I assume they paid you in cash, so it is untraceable.

Yes, and perhaps both parties could be charged with bribery.

Yes of course.

Yes.

You do.

So it is Stormy who should get in trouble for being given hush money?

Sad

Yes. Anything over $10000 has to be declared.

Technically, if the lawyer paid the money, it would be considered a gift and not part of the contract. Contract would be between 2 parties. If one party doesn’t fulfil one half of the contract, then there is no contract. Hence there would be no need to keep quiet. Because, the person technically didn’t pay.

Yes. You even have to declare gifts.

All money is going to be reported whether you want to report it or not, and even if you don't, the person paying you will likely report the loss.

So...