Income Tax Implications...

[Laura Lynn]

I had a government professor that took time to remind our class that some of the greatest mastermind criminals, like Capone, were busted simply because they didn't do their taxes.

Extravagant spending (like cash for a new car) when stated income doesn't support such lavish purchases, I'm pretty sure sends a giant "look at me" red flag. Just be careful.

[TexTushHog]

Originally Posted by UrethraFranklin

Hi sweetie, I've missed you Yeah, but I honestly don't want to talk to an accountant about being an escort… I would rather just do my own taxes, privately.

There's an old saying, "An attorney who represents himself has a fool for a client!" Same with doing your own taxes in this circumstance.

I'm not an accountant, but I think the rule is you can't deduct expenses if you gain your income from illegal activity. So you will bear the burden of proving that your income comes legal escort work, not prostitution. Lot's of luck with that.

Originally Posted by Prolongus

How did this happen?

If you can still read this, you can actually list your occupation as "Entertainer" or "Escort", neither of which is illegal. I knew a girl who did that (Escort) on her tax form.

That will work unless you get audited. And claiming high expenses in an iffy business sounds like a good way to get audited. Go see a CPA and ask their advice.

[Guest060214]

Originally Posted by TexTushHog

There's an old saying, "An attorney who represents himself has a fool for a client!" Same with doing your own taxes in this circumstance.

I'm not an accountant, but I think the rule is you can't deduct expenses if you gain your income from illegal activity. So you will bear the burden of proving that your income comes legal escort work, not prostitution. Lot's of luck with that.

That will work unless you get audited. And claiming high expenses in an iffy business sounds like a good way to get audited. Go see a CPA and ask their advice.

There is an NAICS for a "escort services, social". It would have to be proven that the income was from illegal activity, there is no burden to prove it is not. It would be more of a problem if taxes weren't filed. And as is the case with any business, don't go crazy with the expense deductions, especially someone using the NAICS for escort services...there's a lot of gray area there.

[Vic Kosslovich]

The safest thing to do is to list your occupation as something that is legal but heavy in cash. Things like massage therapist works very well. The IRS doesn't care if your licensed or not. As a massage therapist your location is an ordinary and necessary expense as are cleaning supplies, towels, massage oils, etc. Don't try and deduct your clothes as they will not pass an audit. Someone recommended Turbo Tax and that's a good idea.

The worst idea is trying to hide your income by failing to file or claiming such a small income as a business that you can't live off it.

If someone needs more help they can PM me.

Vic

[Guest060214]

Originally Posted by Vic Kosslovich

The safest thing to do is to list your occupation as something that is legal but heavy in cash. Things like massage therapist works very well. The IRS doesn't care if your licensed or not. As a massage therapist your location is an ordinary and necessary expense as are cleaning supplies, towels, massage oils, etc. Don't try and deduct your clothes as they will not pass an audit. Someone recommended Turbo Tax and that's a good idea.

The worst idea is trying to hide your income by failing to file or claiming such a small income as a business that you can't live off it.

If someone needs more help they can PM me.

Vic

Good advice, although if you are deducting those things and are audited, you will need receipts. Also, I'd add make regular cash deposits into your bank account, keep track how much you deposit in cash and by sure the numbers coincide with what you report.

[macbeth1000]

This was the funniest thread, I have read in awhile. Also Escorts have their own NAICS code - dang -- i guess it makes it easy to do a business valuation or file taxes, wonder what the comparable industry would be.

[ftango4]

I thought it was a guy. I was a CPA in another life but I dont know shit from shinola about todays tax code. did not mean to disrespect. Are we sure this a lady in need or just some banned dick weed?

[eccienewbie]

Originally Posted by ftango4

did not mean to disrespect.

A little late for apologies, imo.

Hope you learned something from all this.

[Str8Kandi]

Help me file this year or it's too late

[Moranite]

Well for the 2016 year yes you are technically late for taxes but as for the IRS is concerned it's better late than never. There might be penalties and such if you owe money but not filing your taxes is a whole lot worse if things go bad

[Bestman200600]

Filing a return starts the running of the statute of limitations. A massage therapist business might be the way to go. Managing the amount of income with a friendly tax preparer. Head of household with child various deductions and breaks if that is your situation and childcare costs. Deduct incall expenses, phone expenses, business travel to clients(mileage) other miscellaneous expenses. If a boyfriend (regular) gives you 2K per month, gifts are not taxable as long as he is willing to say they were just gifts.

Don't file numerous back returns and draw attention to yourself. Prior years, living with your boyfriend as a reason.

[Lucas McCain]

Do you fucking people even know when taxes are due? Why the fuck was this old ass thread even bumped??? Just a hint for the genius looking teenage boy who bumped this thread, you still have plenty of time if you want to pay taxes for 2017. Worry about it on April 1st and you'll still have a couple of weeks to take care of it with no problem. I think everyone who actually pays taxes knows that you always pay on or around April 15th for the previous year before you're considered late.

[Chung Tran]

Originally Posted by Lucas McCain

Do you fucking people even know when taxes are due? Why the fuck was this old ass thread even bumped???

I do, and I will wager 97% of the people on this Board don't know the correct answer.. taxes are not due on April 15, they are due at the time the associated income is earned.. which is why Employers withhold from your paycheck. the April 15 date is simply the end of the grace period if you did not pay enough through withholding (or estimated payments), i.e., when you earned the income. and the April 15 grace period doesn't cover you if you did not have enough withheld.. penalty taxes for underpayment can accrue throughout the grace period if you don't pay enough tax through withholding or estimated payments.

Originally Posted by Str8Kandi

Help me file this year or it's too late

I will be glad to help.. I just hope I can hear you while your thighs are covering my ears

[Lucas McCain]

Originally Posted by Chung Tran

I do, and I will wager 97% of the people on this Board don't know the correct answer.

I will wager that you are incorrect about that and hookers on this board are classified as independent contractors if they bother to pay taxes and the dudes on this board are like me and just fuck around on 4/15 to file in case they paid too much or too little. And if I made too much for the year, I pay quarterly to make sure I am not penalized depending on my form of employment and I want to wait until 4/15 to find out the answer. I'd bet my CPA license on that. Anybody on here has taxes automatically taken out of their checks if they work for "the man." Any independent contractor on here doesn't. Either way, 4/15 means something to everyone. Or it should if you have half a brain and you pay your taxes like you should.

[Chung Tran]

Originally Posted by Chung Tran

I do, and I will wager 97% of the people on this Board don't know the correct answer..

Originally Posted by Lucas McCain

I will wager that you are incorrect about that

I will wager that you didn't understand my statement. considering that you mentioned April 15 in your previous post, at least suggesting that April 15 is the right answer.. which 97% of the people here would answer.

one more time.. taxes are due the day you earn the associated income. April 15 is the end of a grace period that allows you to pay any shortfall without penalty (usually).. even if you pay the taxes due on April 15, you still may pay more tax than you would have, if you had paid on time, i.e., when you earned the income. that is because you may be penalized for not paying enough tax at the time the income was earned.