Las Vegas
No, the income you are referring to is NOT tax free. The IRS will be more than happy to educate people about this- in institutional locations where room and board are provided at federal taxpayer expense. I don't think you or they would like the diet or the uniform, though. 
The rule of thumb is you can say "self-employed entertainer" or something like that on your tax forms (because you do not give up your right to 5th Amendment protections just because you file taxes, that's well-established legal principle)...but you DO have to tell the IRS what you made, and have the documentation to back it up, just like any other self-employed small business owner. Otherwise it's tax evasion. Plain and simple.
-- Modified on 7/9/2006 9:36:21 PM
No, the income you are referring to is NOT tax free. The IRS will be more than happy to educate people about this- in institutional locations where room and board are provided at federal taxpayer expense. I don't think you or they would like the diet or the uniform, though.
The rule of thumb is you can say "self-employed entertainer" or something like that on your tax forms (because you do not give up your right to 5th Amendment protections just because you file taxes, that's well-established legal principle)...but you DO have to tell the IRS what you made, and have the documentation to back it up, just like any other self-employed small business owner. Otherwise it's tax evasion. Plain and simple.
-- Modified on 7/9/2006 9:36:21 PM