Ladies, do you file taxes?

Ahh, Uncle Joe....what a guy! The stripes are better than the regular pink uniforms, in my opinion! Originally Posted by Chica Chaser

I completely agree...have a very wild-west look about them. LOL

A few years back, a friend I went to school with got into serious IRS trouble.

His familly owned a huge truck salvage yard, lots of "cash business". The did declare a certain income, a minor part of what they really made.

One day the IRS came knocking. They said that all they wanted to know was how they were each able to spend $200,000+ a year, when they only declared a fraction of that.

The IRS had a record of every major purchase for the past number of years.

That is called income tax evasion, not just failure to pay. They will put you in prison for that.

Just so you know on the lingerie: the official IRS position on work clothes is "It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing."Of course that's for clothes bought by an employee, maybe as a sole proprietorship they'd be more lenient (I'm guessing not.) I have a client who works for Tommy Hilfiger, they make her buy and wear company clothes, but I flat refuse to claim them as an expense. Do with that information what you will.
The medical checkup I'm iffy on. Certainly as a personal medical expense, but why do you need regular medical checkups when all you're doing is going on dates? Of course as long as it's not an unreasonable amount, and you show a profit overall, you're not likely to get audited on it.

Gulflover would be correct.

As an escort you cannot write off doctor visits. As Gulf said, how are you going to justify that as a work expense if you're just a companion? In my opinion, that's a sure fire way of asking for an audit.

Gulflover is also correct about clothes, lingerie and I'll also add makeup to that. Unless the makeup is a speciality product, I.E., something like stage makeup, you're not going to be able to keep writing it off. The IRS will catch on sooner than later and the audit will happen.

Gulflover would be correct.

As an escort you cannot write off doctor visits. As Gulf said, how are you going to justify that as a work expense if you're just a companion? In my opinion, that's a sure fire way of asking for an audit.

Gulflover is also correct about clothes, lingerie and I'll also add makeup to that. Unless the makeup is a speciality product, I.E., something like stage makeup, you're not going to be able to keep writing it off. The IRS will catch on sooner than later and the audit will happen. Originally Posted by MsElena

I have to disagree with this. I worked as an online/webcam model for 2 years and my lingerie/clothes were tax-deductible.

So was: percentage of rent, heat, electricity, water, internet, apartment repairs, office supplies, computer equipment, makeup, supplements, beauty products, waxing, toys, lubricant, shoes, internet advertising,
cam room decorations. Webcamming (unlike escorting) is a very legal business.

Mind you I still cam on and off. My CPA also informed me that clothes could be written off as an escort.

I TREAT THIS LIKE A BIZ AND YES I FILE TAXES..I DONT PLAN ON DOING THIS 4 EVER BT IT IS GOOD MONEYY AND IM ABLE TO GO TO SCHOOL AND TK CARE OF MY KIDS AS A SINGLE MOM..HOPEFULLY N THA NXT 5YRS ILL B OUT THO..

I have to disagree with this. I worked as an online/webcam model for 2 years and my lingerie/clothes were tax-deductible.

So was: percentage of rent, heat, electricity, water, internet, apartment repairs, office supplies, computer equipment, makeup, supplements, beauty products, waxing, toys, lubricant, shoes, internet advertising,
cam room decorations. Webcamming (unlike escorting) is a very legal business.

Mind you I still cam on and off. My CPA also informed me that clothes could be written off as an escort. Originally Posted by Naomi4u

Our CPA's see differently and I trust his word. Plus, he used to work for the IRS so that's an added bonus for me. I have no problem paying a little more if that means no audit for me in the future.

You know damn well that escorting is a legal business. Its what might happen BCD that's illegal.

We can go back and forth on this matter. It all comes down to what your accountant tells you, if you trust him and how much do you really want to cheat the IRS out of in the long run.

Just so you know on the lingerie: the official IRS position on work clothes is "It is not enough that you wear distinctive clothing. The clothing must be specifically required by your employer. Nor is it enough that you do not, in fact, wear your work clothes away from work. The clothing must not be suitable for taking the place of your regular clothing."Of course that's for clothes bought by an employee, maybe as a sole proprietorship they'd be more lenient (I'm guessing not.) I have a client who works for Tommy Hilfiger, they make her buy and wear company clothes, but I flat refuse to claim them as an expense. Do with that information what you will.
The medical checkup I'm iffy on. Certainly as a personal medical expense, but why do you need regular medical checkups when all you're doing is going on dates? Of course as long as it's not an unreasonable amount, and you show a profit overall, you're not likely to get audited on it. Originally Posted by gulflover

Gulflover would be correct.

As an escort you cannot write off doctor visits. As Gulf said, how are you going to justify that as a work expense if you're just a companion? In my opinion, that's a sure fire way of asking for an audit.

Gulflover is also correct about clothes, lingerie and I'll also add makeup to that. Unless the makeup is a speciality product, I.E., something like stage makeup, you're not going to be able to keep writing it off. The IRS will catch on sooner than later and the audit will happen. Originally Posted by MsElena

FINALLY, we have at least 2 posters who know what they are talking about.

I have to disagree with this. I worked as an online/webcam model for 2 years and my lingerie/clothes were tax-deductible.

So was: percentage of rent, heat, electricity, water, internet, apartment repairs, office supplies, computer equipment, makeup, supplements, beauty products, waxing, toys, lubricant, shoes, internet advertising,
cam room decorations. Webcamming (unlike escorting) is a very legal business.

Mind you I still cam on and off. My CPA also informed me that clothes could be written off as an escort. Originally Posted by Naomi4u

For the rest of the ladies reading this thread, DO NOT follow the "tax advice" of Naomi4u or her CPA. Notice that there was no mention of the "tax strategy" being tested with an IRS audit in Naomi4u's quote. The CPA should have his license revoked by the state board of public accountancy for offering such erroneous advice.

If you follow this advice and are audited by the IRS, you will definitely be in for a surprise. Everyone can espouse untested free tax advice all day long. It's worth what you paid for it. File your tax return and seek COMPETENT tax advice that you will probably have to pay for.

The real test of any tax strategy comes under the scrutiny of an IRS tax audit that few have the guts to undergo.

With the tax deadline coming up this is a very interesting thread. A couple of comments. First, a minor point. Naomi said webcamming is legal but not escorting. Actually, she mispoke, because escorting in itself is quite legal, as I am sure Naomi would agree. Sort of like consulting -- someone gets paid for their time. Now it has been suggested that some 'escorts' are actually trading money for sex. I am shocked, just shocked....

Second, the IRS is all about the money. They don't really care where you get it, but they do want their share. Feed the beast.

Third, filing taxes and taking deductions, even if questionable, beats not filing. In the former case you might end up arguing over the correct deductions and paying more taxes than your original filing. Unpleasant to be sure, but by filing you show your good intent. Deductions are a real risk/reward choice -- the further you go into the grey area, the greater your chances of an audit. But if you pay, you will not be going to jail.

Not filing at all, or otherwise getting caught hiding income, can lead to a charge of tax evasion. That is another thing entirely. I know people who have gone to jail for tax evasion.

Fourth, if you are a provider and you are not paying taxes, you should not announce it to the world on this board. I doubt you are as anonymous as you would need to be if the IRS decided to find out who you are.

(Please note: I do not work for the IRS, I don't like those guys, I think taxes are too high, etc, etc. But pay your taxes. If you don't like how high they are, start voting for politicians who will cut government spending. Cut spending and taxes will follow. But pay your taxes.)

@davidsmith0123

Good analysis, IMHO.

My Dad, who was self taught at the tax filing stuff had a saying I never forgot: "when it comes to deductions, claim as many legitimate ones to which you think you are entitled. The IRS is not going to give them to you. You have to claim them."

Dad was employed, but had a side business, so the taxes each year were somewhat complicated, more so some years than others.

I'm sure that there were deductions he took, that if audited, might have been disallowed. But as ds01123 says, all you do is pay the difference and move on. Dad was willing to do that as a tax strategy to limit his tax liability as much as possible.

Me, I pay a tax guy to take all the heat. So far, so good.

You should definitely file taxes and not mess with the IRS

It is a very simple thing, if your assets and cost of living is more then you report, you are going to be in some trouble.

You can always contact the IRS and have them send you forms to file from years past, and you will just have to pay a penalty fee, but it sure beats not doing it and getting busted.

For the rest of the ladies reading this thread, DO NOT follow the "tax advice" of Naomi4u or her CPA. Notice that there was no mention of the "tax strategy" being tested with an IRS audit in Naomi4u's quote. The CPA should have his license revoked by the state board of public accountancy for offering such erroneous advice.

If you follow this advice and are audited by the IRS, you will definitely be in for a surprise. Everyone can espouse untested free tax advice all day long. It's worth what you paid for it. File your tax return and seek COMPETENT tax advice that you will probably have to pay for.

The real test of any tax strategy comes under the scrutiny of an IRS tax audit that few have the guts to undergo. Originally Posted by MacTheKnife

So... What did I say to warrant such dramatic response? I just did what he told me to do.
You're telling people not to listen to me but you did not mention anything in particular.
Just FYI, I was not giving free advice. That's not what this thread was for. I wanted to know IF ladies
filed their taxes.

It is a very simple thing, if your assets and cost of living is more then you report, you are going to be in some trouble.
Originally Posted by Tiffany Cums

EXACTLY!
I think we have a thread winner!

You know damn well that escorting is a legal business. Its what might happen BCD that's illegal.
Originally Posted by MsElena

I'm glad you knew that I knew that.

With the tax deadline coming up this is a very interesting thread. A couple of comments. First, a minor point. Naomi said webcamming is legal but not escorting. Actually, she mispoke, because escorting in itself is quite legal, as I am sure Naomi would agree. Sort of like consulting -- someone gets paid for their time. Now it has been suggested that some 'escorts' are actually trading money for sex. I am shocked, just shocked.... Originally Posted by davidsmith0123

Just for the record, I know "Escorting" is legal.


I did not "mispoke" anything. Let's not bullshit ourselves here. Prostitution takes place and THAT'S what I was commenting on whether yall want to agree with me or not. You cannot compare webcamming and escorting because there are no legal loopholes with webcamming. It's just that... legal. If escorting was so legal, why are girls getting busted everyday? Ladies that don't talk about sex for money in their email or ads are assumed to be prostitutes. What happens If I go to an appointment right now and give the guy just my time. I sit on his lap and just hug him the time we're together and I don't F%^k his brains out and leave. What will happen? I will be blasted all over the review boards. Don't give me that **** dude! You do not have to mention sex and you can get arrested. There is a very thin line with escorting. With webcamming, I can fuck myself all day and be a happy camper.. no legal issues. ha!!!

Second, the IRS is all about the money. They don't really care where you get it, but they do want their share. Feed the beast.

Third, filing taxes and taking deductions, even if questionable, beats not filing. In the former case you might end up arguing over the correct deductions and paying more taxes than your original filing. Unpleasant to be sure, but by filing you show your good intent. Deductions are a real risk/reward choice -- the further you go into the grey area, the greater your chances of an audit. But if you pay, you will not be going to jail.

Not filing at all, or otherwise getting caught hiding income, can lead to a charge of tax evasion. That is another thing entirely. I know people who have gone to jail for tax evasion.

Fourth, if you are a provider and you are not paying taxes, you should not announce it to the world on this board. I doubt you are as anonymous as you would need to be if the IRS decided to find out who you are.

(Please note: I do not work for the IRS, I don't like those guys, I think taxes are too high, etc, etc. But pay your taxes. If you don't like how high they are, start voting for politicians who will cut government spending. Cut spending and taxes will follow. But pay your taxes.) Originally Posted by davidsmith0123

Agreed!

Thanks, Mac, I try anyway. Every return I do I imagine an IRS auditor sitting in front of me although I've never had the pleasure of an actual audit but the guy who trained me won most of his. Well one return I worked on got audited but the client didn't tell us til after the fact, we won everything except one crucial thing the client didn't tell us about though maybe we should have known to ask (it was putting property into service post-Katrina) I don't think Naomi was offering tax advice merely going with what her accountant told her. He was wrong although I think it's possible his strategy would hold up in tax court though not likely (it certainly wouldn't an audit I'm sure.)