LogFAQs > #978950231

https://twitter.com/fawfulfan/status/1759925146280673735?t=7KfsT5R8DC7vLJZ7undH5Q&s=19

Apparently there's a reason for it

the IRS doesn't expect criminals to follow it. The idea is that when they DON'T follow it, they can then get charged with tax evasion on top of their other crimes.
Organized crime bosses are hard to prosecute because they can kill, threaten, or intimidate any witnesses to their crimes.

But it's MUCH harder for them to beat tax evasion. Because they clearly have the money, and clearly didn't file a tax return and declare how they earned it.
That is why this provision exists. So that in the event that a mobster silences anyone who could prove their murder, racketeering, etc, the IRS can still nail them for not reporting how they got their ill-gotten gains.