Credit Card Questions

Credit cards are valid. Make sure that when you decide to take a credit card that you have a valid tax id no. Failure to do so will result in tax invasion which means it brings the IRS into the hobby. Never a good thing. No way to hide credit card earnings

Credit cards are valid. Make sure that when you decide to take a credit card that you have a valid tax id no. Failure to do so will result in tax invasion which means it brings the IRS into the hobby. Never a good thing. No way to hide credit card earnings Originally Posted by mssassy

A few facts may be necessary to clarify.

1. First of all, it's tax evasion.
2. Failure to have a valid TIN by itself doesn't necessarily make you guilty of tax evasion.
3. A TIN of some sort is required by the credit card processor. Depending on your business setup a SSN can qualify as a valid TIN
4. You are right about hiding earnings -- that actually is tax evasion. There is a trail and if you are audited, the IRS may request bank statements, but usually only in the case of a taxpayer compliance audit (that's the one where they look everywhere, including up your butt to see if you're hiding anything - fortunately that only amounts to about 1% of the audits)

My first experience with all this was in Nevada at a brothel. I used a credit card there. The process was that I signed an agreement with my name for a one time charge and I was the owner of the card. The agreement also stated that I would not sue the brothel. (I couldn't tell you about that one, it was legal where I was at.) Anyway I got a reciept and the charge was SR resorts/golf (because they had a golf course there) I never had an issue. So I'm thinking if you approach it as a legitimate business then there should be no problems. I was actually thinking about this for a friend of mine. To get an LLC is easy here. Every year you pay your business tax of like $50.00 or $150.00 (I cant remember)and then you have a means of showing how your earnings are going. You pay your taxes on your earnings and if you can come up with a way to get a reciept then great. If not it's just a matter of making sure your accountant is good. If it didnt work out then its just as easy to disolve your company. But you would have to get that taken care of for sure otherwise it could bring unwanted attention. I used to have an LLC for an online business but in actuality it was just an excuse for me to take ownership of certain things. It would be easy to come up with a business name like Dafnie's candles a guy comes to see you then give him a candle when he leaves. There are so many ways. I just had an experience with a hair salon which I pretty much had to jump through hoops for just to pay for their services. I had to write a note stating I was authorizing them to make a charge on my card and fax my id, card front and back and the note saying I was authorizing the charge with the date. Of course I took it a step further and added that it was to be a one time charge valid for the current date so as not to get any surprises. Credit cards could be easier for both parties though provided she could handle things well with it. If its someone you trust she could get her money pre paid and then when you show up to meet her everything is taken care of already.

I accept CC! And I love it! Your statment will show my "enterprise" name so it's very discreet. It does not ask me for your name and codes of the number iie: ****-***-0897 etc. It's very useful and sometimes more benifical to use the CC method, Half the time it's not coming out of your pockets and you can use it as a tax write off. (Medical expense) <--- Chuckles. Try it out! It's worth a shot... of course just to be cautious try it with someone you already trust provider wise. Enjoy!

Half the time it's not coming out of your pockets and you can use it as a tax write off. (Medical expense) Enjoy! Originally Posted by Adrianna xo

To be honest, if the client has a prescription from a doctor for massage therapy, it IS a legitimate medical deduction. I was audited a few years back. During that year I had injured my back and deducted weekly massages as medical expenses. The IRS raised an objection, but once I gave them a copy of the doctor's prescription, the IRS accepted it.

As a side note, the massage therapist WAS a LMT, not just "anybody." But the IRS didn't ask for her license number.