What if we where to go to a cashless society?
With the smart phones you can make and receive electronic payments, we have debit
Cards we can make payments with, payroll checks are put in to bank accounts. So no need to go the bank.

So heres my question. If we did what do you think this will do to the hobby as we know it ? Knowing that statements are sent home each month and S.Os may be looking at them.

How would this be any different than paying in cash?

Do you honestly think that Johnnie is sending you a 1099?

Any gal that isn't filing today wouldn't do so in a "cashless" society either.

I guess that in my years of experience I haven't seen it all based on your comments.

But if you believe that "banks report income to the IRS"...I also have some great investment properties for you to look at...really, no money down, great income potential

Banks are indeed "required" to fill out a report on cash transactions of $ 10k or more, with that document being retained internally...only!  The information is generally used for RICO type investigations (look up what RICO is for your edification).

The ladies will rarely, if ever in most cases, make a cash deposit in excess of $ 3k.  This is a "non-reportable" transaction.  Many many businesses routinely deposit those amounts daily.  Why you would think that there is some "banking" conspiracy against you is a paranoid delusion.  They don't give a "rats ass" where your cash deposit came from, or care what you do for a living.  But if you want to delude yourself that "they" are onto you and chasing your ass around...whatever!

Am I clear enough on this?

His question was if everything went wireless.IF you were UNABLE to use CASH and EVERYTHING
was by wire there would be no way around it.Got an answer for we uneducated tax payers?
Better yet for those who aren't educated in the lines of paying taxes ?

First of all, you probably know nothing about the figures unless you have done a providers taxes.
My reply to cellman  was not based on an hourly number which you seem to be thinking is, it was based on an ANNUAL.OVER 10K a year.If at the end or a year every appointment a provider had is paid electronically tell me how would a bank NOT have to report this? Are you capable of replying in a professional manner? No one cares if you think people are stupid or dilusional try to focus on the OP question if you can .

-- Modified on 3/21/2012 7:22:43 AM

You should take your own advice and stop babbling so much.

Or get someone who knows what they are doing with regards to this profession.

As far as my knowledge on this subject...consider that I am quite qualified with the understanding of YOUR business and how the transactions work.  Better not to make the assumption you have made...it is SO not correct...not by a long shot!!

And I have many very qualified banker acquaintances that I have and do work with on "cash transactions".  As I posted earlier, you're getting YOUR info from unreliable sources.  Educate yourself so that you don't post misleading and erroneous comments.

And if we want to actually discuss the OP...my opinion would be that electronic transfers would in fact "defeat the purpose" of RICO.  As now those transactions in excess of $ 10k would not be reported as they are today.

First, it has to be fully implemented. Even now, there are companies that still have to compensate for those that have rotary phones. Second, there so many alternatives. There are many March Madness basketball pools where funds are transferred via PayPal, though Paypal has explicit rules against transfer of funds for gambling. Also, though with this economy many are being reduced, all the various social currencies; travel miles, cashback credit cards, loyalty points, membership points and perks, which tend to be kinda nebulous transactions. In the sixties, it was said computers would eliminate the need for paper (paperless society).  Almost 50 years later, it still has a peaceful co-existence, regardless of one's ability to pay bills and read publications online.

So, "opt-out" getting a printed bank statement, or if you are like me, don't worry about it for at least 25 years.

The question is would it change the hobby, and in the long run I don’t think so. Obviously I am no economist, nor am I a financial executive, but here is my opinion for what it’s worth.

To begin with, this profession predates the birth of Christ ("The Origin of Prostitution in Ancient Mesopotamia," Signs, Winter 1986). People have exchanged food, power, position, money and animals for sexual favors for centuries. I have no doubt that intrepid companions and clients would find a way to reach a mutually agreeable transaction. Even if it were not in Dollars, Euros or Pesos, some medium would present itself. It may take time to adjust, comprehend or quantify, but it could easily happen.

Secondly, (and I use this as an EXAMPLE, it’s not real) I need only go to the bank, open an account under my own SS or TIN, classify it as Reagan’s Muffins, then set it up as a DBA. You can electronically send the transaction there. Call me a special event caterer if you want. Not terribly ethical, perhaps not within the framework of the legal system, but easy enough for you to explain on your monthly statement. No doubt if you have your own business you would attempt to perhaps even write it off as a business expense (again not so ethical). Under the DBA my personal information is not divulged and remains hidden during the entire transaction without a court order.

The IRS does not look at what funds go into my DBA, they have no idea why funds go into my DBA. For all they know I took out a loan. They are concerned only with the 1099 and other reporting they receive compared to my reported revenue. Am I paying taxes on all income after my legal deductions against my revenue is what they want to know.  

Certainly for some providers it may cause a problem. If you have not been filing taxes, you would probably want to reconsider your financial plan, or get good advice at a minimum. But this is not a discussion of what people should and should not do, and its not any of my business to tell someone what they should or should not do.

Personally I have very high hopes for both the new PayPal product and the product called SQUARE. These allow you to just swipe a customer’s credit card right then and there, and get the customer to sign on your Iphone. As soon as some of the foreign banks accept that technology I don’t care what the rates are I will likely be in line. As the owner of a small non adult business I may have views that are vastly different than others.

For the intelligent, well informed, and reasonably astute companion or client, the advent of electronic funds will mean change. But then again don’t we see change in our lives daily, and we always seem to adapt.

Just my two cents

In general you make some excellent observations on the use of electronic transfers.  It is a common everyday occurrence now, and will only continue to escalate over time with many cash transactions becoming these types of electronic transfers.

Your comments on the IRS NOT looking at the income into your checking/DBA account is wrong.  In an audit, you can "take it to the bank" that that is indeed what will be under scrutiny.  And using an LLC or S-Corp (or any other entity you would like to set up) would not be of any particular value in "hiding" the income streams.  Additionally I highly doubt any John will EVER send you a 1099.  However, if you're suggesting that Johnnie is buying something "legal" from you, and you have evidence to support his "purchase", perhaps Johnnie may try and "write off" his purchase and indeed, send your "company" a 1099.  If I had a client doing this, I would definitely have a very long chat with him/her about doing this.  It's one thing to pay for YOUR services, it's quite another to create false documents and misleading and false information that one is "agreeing to not commit perjury" when they sign either a Corporate or Personal income tax return.  Just remember, if it walks like a duck, quacks like a duck...it's likely a duck!

So you have a couple of different vantage points on how these transactions will be viewed, let alone who is doing the viewing.

But I agree with your comments on why electronic transfers will have NO effect on this business.

I am sorry I probably wasn’t as clear as I should have been.

Your are 100% correct, in an audit all bets are off. Not only will they see it, I would bet they would compare or at least try to link expenses to income to validate if all is being reported. In an audit they will cross into any SS or TIN related entity they please, LLC, C-Corp, S-Corp etc.

I did a poor job of trying to show a way where on a client’s statement they would see an ACH transaction or electronic transaction under some name that was not Sally's Brothel. My apologies, it’s still a "service", no matter the name.

As to the services issue, again your 100% correct. If it walks, talks and looks like a duck; well we know what it is. That’s why I threw out the ethical statement.

But would you not agree (and you I am sure have far more experience than I in this respect), that as a general filing rule the IRS is not looking at your bank account. They are looking at reported income from various sources and what you claim as reported income. They are not going to dig into your bank account and every transaction including deposits and withdrawals on a simple tax return? Wouldn’t that be the process of an Audit?

Perhaps I am wrong? I am always open to learning something new.

The issues of corporate structure were not related to hiding revenue. Those structures are more for hiding the personal ownership information, keeping personal information private. Keep in mind that if it’s a US based structure, a simple subpoena gets any court all the information they want.

Since johnny is employing an escort, it seems that johnny could indeed issue a 1099 but then johnny would be responsible for the employer portion of her FICA tax. But how would johnny issue a 1099 without her correct name and address? He can't so it's up to the provider to be an honest taxpayer.

Thing is, cash transactions are easy to hide but electronic ones are virtually impossible to hide. In a cashless society, every transaction would be traceable.

I'm going to guess that by the 25th century that even the State of Illinois will get their act together and be able to tie electronic transfers to their originators.

But as of today...not an issue.  And even if Johnnie wanted to issue Janey a 1099 (and he would need her real...I mean the real real name, not just her other real name...and a real social security number..and a real addy), he wouldn't be responsible for Janey's FICA, Federal or State income taxes.  She would be reporting that as a self-employed individual.  And she will have the ultimate responsibility for showing the income (of course a good CPA can show her where all those ordinary and necessary business deductions are) and paying her fair share (but not too much...at least not more than her "fair share") of taxes on the NET income after her business deductions.

And if ultimately we end up on the Enterprise...trust me my friend, there will still be "anonymous" ways of sending wire (electronic) transfers. Did someone say PayPal?


And I've got dibbs on Lt. Uhura...before she raises her rates through the universe!!   I guess there are some providers here, and now, that think this is indeed the 25th century...what with the inflated review scores that tie to their inflated provider fees.  Sheesh!!

If all transactions are recorded the s.o. is sure to see. That not only includes the payment made to escorts but also the money for your hobby phone.

S.O. can be a greater hassle than the IRS, RICO, and syphillis

In a cashless society Asiantantric is a hermit. No shaving, let alone waxing. Damn should I be thinking of joining ashleymadison.com

LMAO good one .

WOW !!!  
Due to certain circumstances have not visited Vegas (The RIO ) in 3 years, but after reading your GREAT reviews .. just may have to ... plan a trip there SOON !!!
Past TER handle:  Ruup