Hi Everyone ! I have been trying to google a good CPA for taxes for my 2013 taxes yet and can't seem to find anyone familiar with this area of work when I search. I'm unsure of what I can and can't write off for this type of business so I'm need of some assistance. I would appreciate any recommendations anyone has. Thank you so much !

would love to hear you explain your biz to the cpa!

good luck.

 

The IRS has long taxed all income, even from illegal sources.  I doubt if there is any CPA who specializes in doing tax work for escorts but there may be.  I would go to the largest, most prosperous looking Medical Marijuana dealer you can find and ask who does their taxes.  MM is still illegal under federal law so such a CPA would likely be sensitive to those issues.  

Just because some businesses are "illegal" does Not mean that they cannot claim legitimate business expenses.  The most analagous business model would probably entertainers, comics etc., who travel a lot and have a lot of personal business expenses.   The issue is finding such an accountant whom you would feel comfortable disclosing your situation to.

I would caution that accountants don't have anything like attorney client confidentiity, so when describing your business, I would make clear to the accountant what you do, but without explicitly describing any illegal activity, if there is any.

Say, I am an entertainer, who provides private entertainment events to/for my clients.  My work requires that I travel a lot, book entertainment venues, have certain clothes that are primarily for business and not for personal use etc.  I hope you kept all your receipts.

Talk to some of the high end girls. About 5-10 years ago many of the high end girls used the same guy. I am sure he is still around. Reporting income and paying taxes are the best way for you to be able to save money, build credit, buy homes... and to stay out of big trouble.

Don't let this bobabear scare you out of looking for someone. Remember it was income tax evasion that brought down Al Capone and as I recall many of his activities were illegal. Also there was a situation about 10 years ago where a Stanford Law Grad who paid her way through law school as an escort got in trouble with the IRS.

As well many of my peers would steer clear of anyone in an illegal business.  And there are also quite a few who would steer clear of a legal business that derives the majority of their income in cash (landscaping, restaurant).

I have quite a few gals that I do financial service work including the preparation of Forms 1040 and the related Schedule C's and Forms 1120-S and 1065, and have done so for a number of years now.  

I would suggest that you be VERY upfront with anyone you hire to prepare a return on your behalf, in particular if that professional is going to sign it (generally a CPA firm assumes the liability of their work while "moonlighters" may prepare a return and NOT sign as the preparer).  As many gals discuss the screening issues...so do most competent tax preparers.  Frankly it is important that the CPA understand the business to maximize your deductions, as well as help plan for your future.

If you want to PM me I'd be happy to have a discussion with you on this matter.  

Sounds like you have found a pathway to an answer to your request.

Thank you so much for the PM's with links to good CPA's!

END OF MESSAGE

...taxes income from "whatever source derived," legal or not. As Carl said, 'twas taxes that brought down Capone, and plenty of others as well.

Haven't filed in 3 years or more? That's willful non-filing, and, technically, criminal (though as long as you come clean, the IRS is not likely to go there).  

Your best bet is to report the income and pay tax on it. That's one less agency off your back - and a powerful one at that. And for the rest of you - if they're already on your back, well....send me a PM

It is not universal, as some people assume. When it comes to tax preparation, there is no a-c privilege. Tax advisory is one thing (and much muddier), but when its related to preparing the return, there is essentially no privilege (see, e.g., United States v. Millman, 822 F.2d 305, 310 (2d Cir. 1987); United States v. Brown, 349 F. Supp. 420, 428 (N.D. Ill. 1972)).

There is accountant-client privilege, but that is limited, and does not apply in criminal cases.

Someone I know who's into a few donut shops(the ones with the cash only sign) got a letter from the tax collector 'cause he was paying a mortgage on a house, by their numbers, he couldn't afford.  They have ways of figuring out your numbers are off.  An experienced CPA can be a great help.  Put entertainer as your profession.  With a Hollywoodland address you'll be just like the gazillion other entertainer returns they get from around here, they won't bat an eye.

Jonathan

Conversation at the tax collectors office,  
Clerk#1, "Hey look at that Holly Jewel's return, says occupation entertainer, you ever heard of her?"
Clerk#2, "Nope."
Clerk#1, "Yeah, me neither."
Clerk#2, "Gimmie the next one.

And as your donut friend has found out, the income has to support the deductions. Someone making $30K (on their tax return) who's supporting a wife and 4 kids AND paying $20K in mortgage interest doesn't pass the smell test - the IRS is going to wonder how you can afford to live day-to-day (because they have their scoring methods).  

And after the IRS, comes the state. I was told once that the IRS has 7 different methods for auditing you without any records (because some people try to be cute and say "I have no records, thus I have no income")