Naruto Shippuuden Episode 299

[DarthEnderX]

Itachi killed everyone, and Sasuke walked in on him.

I'm pretty sure they show Itachi sitting on top of a telephone pole watching Sasuke come home first, obviously waiting for him to show up.

EDIT: Yes. http://www.mangahere.com/manga/naruto/v25/c224/16.html

Hokage would have spread the word already. Itachi's corpse would have been missing, and the village would have needed to find the one responsible. If no one from the village did it, then they would have needed to direct their suspicions at other villages, which defies the point of killing the Uchihas to maintain village stability and well-being.

Still, having the village blame Itachi leaves Sasuke room for doubt, and possible paths besides mindless revenge.

Confronting him and telling him you totally did it and also that the reason you did it is because you're super evil and the only way you can make it right is to become evil too is...again...the stupidest fucking plan ever.