It is an excellent idea to do so for any number of reasons, not the least of which is that it is a very serious offense to not pay taxes and could get you in lots of trouble.

LLCs.

I use an accountant and file everything under "Actor" since that's my day job. You could easily put entertainer. There's no need to be specific. You'll also have to file as self-employed, which come with an extra tax in NYC. Good luck!

But you do have to claim all income.  (legal or illegal).  
The IRS only cares about the money.

If you do that, your customers will be required to file a 1099 for the money they give you.  Some may think this is a good thing, because you will become a deductible expense.  Others may cringe at the thought of being part of your paper trail.  

Is to strongly encourage you to find a hobby friendly tax attorney or accountant.
Trust me , they're out there. In fact I'd be surprised if you didn't have a client or two in that category.

the odd's of getting an IRS audit is 1 in 114, which equals a 0.877% chance; or less than 1%.
As another woman already stated, you can just file your tax returns as an Entertainer.
I know of at least 4-5 strippers who file their taxes this way as well as 2 providers.
Just make sure you end up paying some taxes. Don't "write-off" so much crap, that your taxable income shows $0. That is just not smart to do.
Plus, by paying taxes you will be contributing to your own Social Security Income. When you go to retire (age 62.5 or older),you'll be able to collect a monthly income from SSI in addition to other investments that i hope you are presently contributing to as well.

..from someone who has experience in this area.

Suggestion for the ladies in general. Get a good accountant who can work your situation for you. If you legitimize, then actually legitimize because you won't fool an IRS auditor without good business records. Also be aware tax fraud is a federal offense before you go down the path of trying to fool the Feds.
And, as a side issue, if you can't save anything from your escort earnings now, how do you think you will be able to pay your taxes if you create a "business" that will require those payments to be made. Food for thought ladies.

-- Modified on 9/20/2016 3:50:05 PM

.. I saw an escort who had an escort savy accountant who set her up as a self employed graphic designer so that she could file taxes, have credit, contribute to a retirement account etc.

Nor did she say anything about not being able to save. So save the snarky replies for the BSC hookers who deserve it.

A tax attorney is an "attorney"...and generally speaking, you'll have client-attorney privilege.  Your CPA relationship is not legally protected, and statements you make to your CPA wind up in court.  Your CPA can be forced to testify against you.  Your attorney cannot legally testify against you

All good answers Gambler.
As far as filing taxes in each State she's worked in, thats ridiculous. (the other poster said this, not Gambler).
Unreimbursed Business Expenses do not fall under Self Employed people. All expenses for that would be listed on a Schedule C.  
Unreimbursed Business Expenses are under Tax Form 2106, which is for Wage/Salary Earners.
Filing quarterly comes into play if you're reporting high earning as a Self Employed person. If you're claiming, lets say $50k a year in total income, filing quarterly would be a waste of time. the penalty would be about $100 or so for filing yearly instead of quarterly.
My ex-neighbor was an IRS agent. She always said that there are no such thing as "red-flags" on a tax return. The 'red-flag' only relates to the amount (rather large) of a certain deduction.
Not the category of the deduction; IE Home Office
I believe Hilary/Bill Clinton were audited back in the 90's (i think it was the Clintons, can't remember for sure now) for a tax deduction on underwear that they wrote off. That deduction wasn't allowed.

then miss the many chances for rubbing her nose in the "render unto Caesar" line? If she failed to give you 100% effort she would be failing Christ!

Nothing "snarky" in my post at all; just some practical considerations for any of the ladies here who follow this thread. So calm yourself down GaG. A number of interesting thoughts being posted here in line with Mia's request for 411 on this subject. Now, back to the subject at hand before the thread gets sidetracked.

but it would be cost prohibitive unless she is one busy little hooker, bringing in some very big bucks.  

The OP is looking for how to get back to being a tax paying citizen, you are the only one suggesting she not try to "cheat" when doing so.

You may think it's ridiculous, but it's the law in states with an income tax. Earn money there, pay tax.  

or even prostitution. Don't be like Al.

Find an accountant with a CMA certification. You don't want an accountant with an understanding of public accounting, you need an accountant with an understanding of the financial requirements of your business. You need someone to file your quarterly reports as not doing so will get you behind the IRS 8-ball quickly.  (Long ago I worked as a financial auditor, so I know a little about this... though time changes this stuff.)

-- Modified on 9/20/2016 2:39:48 PM

I met a person recently (NOT an escort) whose actual job title was "Life Coach". The first thing I thought was that it sounded like an "alternative title" for an escort.

While the IRS might only care about you claiming all of your income, if you admit any illegal acts to them (and they are the Boy Scout-type) they might choose to contact the proper authorities in your state.

I met someone recently whose actual job title is happiness life coach.

Yes definitely pay your taxes and report your income.  But you are in a complicated position, since prostitution is illegal in the US, and everyone knows what escorts do, so you must get a good tax attorney.  As someone has already mentioned, it is prefered you use the services of a good, highly recommended tax attorney, since all information revealed to him/her will be kept in confidence and can't be used against you in a court of law, as per Attorney/Client privledges.  
In the UK and in many parts of world where prostitution is legal, the taxing authorities such as UK's HM Revenue & Customs is now targeting escort's and sex worker's income, because they think we make more money/income than what we actually claim on our tax forms, so they are going after this additional source of tax revenue, with scutiny, and I am sure the IRS will do the same soon.  
Also, after 9/11, Homeland Security and the Patriot Act have made all financial instutions, including the IRS, watch and flag all suspicious financial activities that are reported and unreported, including the ones on your tax forms.  
And don't be fooled, due to heighten fear of terrorism, all government agencies work together and share information.
Do your due diligence.
I hope this helps.
Sweet Kisses
Frederica

Hookers "retire" at 62.5?  
Does that mean we will see a drop in the 39 and 40 something hookers out there?

the incessant itch of being horny all the time,
thankful there are so many ways to scratch it

I cannot for the life of me fathom why you would make such a recommendation.

As you just said, there is no reason to buy a Ferrari simply to get to the store.

I for one would love to have a 1099 to deduct my consultation expenses.

That means her toys are tax deductible!? Lol