Dr. Jonathan Crane, aka The Scarecrow, thinks he understands fear better than anyone. He’s spent years terrorizing Gotham with hallucinogenic toxins, preying on the minds of his victims. But there’s one fear he never prepared for—an IRS audit.
Scarecrow has been running an underground operation, manufacturing and distributing his signature fear toxin. Illegal? Of course. But here’s what he didn’t realize: even drug money is taxable.
The IRS Doesn’t Care If Your Business Is Illegal
Most criminals worry about Batman. But the smart ones worry about the IRS. Because under U.S. tax law, all income is taxable—whether it comes from a Fortune 500 company or a back-alley drug lab.
Scarecrow never filed a return. Never reported a dime of his earnings. He assumed, like many before him, that because his business was illegal, taxes didn’t apply. He was dead wrong.
The Penalties Hit Like a Nightmare
When the IRS caught up with him, they didn’t charge him with poisoning Gotham or illegal experimentation. No, they got him the way they got Al Capone: tax evasion.
Here’s what he’s facing:
• Failure to report income – The IRS assumes you owe them everything until you prove otherwise.
• Tax evasion charges – A felony carrying up to five years in federal prison.
• Unpaid self-employment tax – Even Gotham’s most wanted criminals are still considered “self-employed” in the eyes of the IRS.
• Civil fraud penalties – 75% of unpaid taxes, plus compounding interest.
Scarecrow thought fear toxin was his greatest weapon. Turns out, the IRS has something even scarier: an itemized list of everything he owes.
The Inevitable Arrest
When they finally caught him, he tried his usual tricks. Psychological games. Threats of hallucinogenic gas. But the agents sent to seize his assets? They weren’t afraid.
One even muttered, “We’ve seen worse.”
Scarecrow wasn’t prepared for that. The realization hit harder than any punch from Batman: the government doesn’t care what you do—they just want their cut.
The Final Lesson
It doesn’t matter if you’re running a legal business or a black-market fear toxin empire. The IRS always comes to collect.
Because in Gotham—or anywhere else—there’s one universal rule:
If you make money, you owe taxes. No exceptions. Not even for supervillains.