Yes, that unbelievable screenshot you might have come across social media about reporting certain things to the IRS is true:
“Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8z, or on Schedule C (Form 1040) if from your self-employment activity.”
Source: IRS.gov
And:
“Stolen property. If you steal property, you must report its FMV in your income in the year you steal it, unless in the same year you return it to its rightful owner.”
Source: IRS.gov