First, most of the advice on that old link is so wrong it is shocking.
Yes, you have to file and pay taxes on your provider income. If you don't, you are guilty of a felony. Whether you will be caught is a whole 'nother question.
Yes, all legitimate business expenses are deductible - hotels, travel, lingerie. This is true even if the business itself is not legitimate. Save your receipts in case you are audited.
Finally, the IRS will not use this information to get you prosecuted for a misdemeanor. I would recommend you put "consultant" or "entertainer" on your return to avoid embarrassment, but it really doesn't make any difference.
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