paying taxes on illicit activities = relying on admitting the illicit activities either directly on the tax form or in an audit = FAIL

not paying taxes on illicit activities = tax evasion and likely discovery of illicit activity in criminal investigation = FAIL

money laundering = illegal if the government has determined the source is illicit = FAIL

those are the options and deterrents.

if you money launder with proper obfuscation, you wind up with money that you do pay taxes on and will never trigger an investigation.