I'm wondering:

How many escorts report all or part of their earnings to the IRS?

If they do, how do they describe their occupation?

If not, how do they prove income when renting apartments, buying cars etc.?


As anyone knows who makes his earnings in the black market economy, money earned through illegal activities is of much less value then if it's earned legally, that is, until it's laundered, of course, but achieving that is not withoput its hyigh costs. Do high income escorts launder their money?

Not that its any of your business(unless you are an agent of the IRS), but to satisfy your purient interest, I will tell you what I have heard. Now remember,as I am a hobbyist(not an active one but a hobbyist all the same)and not a providor there may be some inaccuracy in what I am going to say. Ladies, feel free to jump in if you wish.

I presume, and have been told that most providors either have a conventional career and do this on the side. In that instance, I presume their additional income is declared, and a competent accountant can apply the appropriate deductions to cover that additional cash.

For other providors for whom this is their sole income. I would imagine that they put "professional entertainer" or similar under occupation. Again, an accountant that knows what he or she is doing and has the proper documentation can legally satisfy the IRS. The IRS does not care what you do. Quite literally they don't. As long as you pay the appropriate taxes and can prove it they could care less how it was derived. For Example: Kids don't try this at home but I have been told by some very sharp legal scholars that in theory at least the sale of Heroine is not illegal what is illegal is the non payment of taxes on the sale of such. In other words in theory (I wouldnt' try it but I have been told) If you sell heroin or any other illicit drugs as long as you sell only to adults and declare and pay the appropriate tax then the police, DEA, and the IRS can not touch you.

My opinion for what it's worth

As much as I'd love to read some posts on how the women handle their supplemented incomes, I doubt we'll see many responses in an open forum like this.  No need to give the IRS any tips.

doing it?" Third "What do you do to keep from getting caught?"  Whats next?  " Would any one like to confess to a crime they  committed?" "How about some income tax that your fudged on?" Please tell us how you evaded income tax.

under the current law.  When a MD starts to write too many presciptions of narcotics, he/she would most likely subject to investigation by DEA.

The legal scholars you quote are probably like many tax shelter accountants in the late 70s, early 80s - creative artists who in most cases caused untold amount of trouble for their clients.  (see Willie Nelson, etc.)

-- Modified on 5/15/2003 4:30:00 PM

A cash business can be well protected and I am sure the providers are smart enough to figure out what to do with their money.  I am avaliable to provide private professional advice if interested.

The selling of any of the items on the Controlled Substances Act will get your butt thrown in jail.

However you are right in the fact that the IRS doesn't care how you make you money as long as you report it. Writing the WRONG information in the occupation box however is unlwaful and can be prosecuted although done seldom. There is even a section in the IRS publication for filing the 1040 form that meantions reporting unlawful income.

Always keep 3 or 4 irons in the fire and cover your back!!!

Indigo

-- Modified on 5/16/2003 1:29:24 AM

narcotics convictions?  Have you forgotten about the zero tolerance policy?  Under current federal law you could receive life in prison for selling a relatively small amount of drugs to a federal agent.  That same sale to local LE in California could be a misdemeanor.  

With the exception of Nevada, the IRS exchanges suspicious information with the other 49 states. When the government embarked on the war on drugs in the early eighties, one of the provisions was that the IRS would cooperate with local LE.  If anything looks suspicious, even though you have complied with the tax code, the IRS is required to pass that information on to local LE.  Your income tax returns might be confidential in regards to the public, but don’t think for a minute your information in not available to LE.  If someone were to list an illegal occupation on their return, you can be sure the information would be passed along to local LE.  

IMHO the war on drugs has done more harm to this country than any other single endeavor since its beginning.  


-- Modified on 5/15/2003 9:43:09 PM

That's easy... I stopped filing in 1979 and have claimed exempt on W4s ever since. BTW-This is known as avoidance & not evasion; Evasion is illegal!  

Fuck'em If they can't take a joke.

Selling cosmetics from home is quite lucrative

Bank tellers are always surprised by the thick wad of cash I bring in every week to deposit. When they look at me questioningly, I let them know that my home based cosmetics company (similar to Mary Kay) is doing well.

Once I went to the same branch twice in one week and was recognized by a teller. "Hey, you were just here making a deposit the other day. Wow, you must be doing well....maybe you could give me your card because my sister wants to do something like that in her spare time."

Hearing that, I beat a hasty retreat and didn't go back to that branch again for awhile.

I didn't want explain that my particular cosmetic company involves trying out lipstick on male organs. LOL.  

Several months ago I was curious myself about this issue, and did some asking around, both of providers (and a few non-providing dancers), and accountants I know.  The general consensus was that while a few of the providers that did it "on the side" hid most or all of their providing income in some fashion, by and large the girls all reported most if not all of their income.  As for declared occupation, I heard several, such as "personal consultant", "entertainer", "dancer", etc., including "escort" - note that being an escort is perfectly legal, and the IRS is quite satisfied with it as a cash-based occupation.  How the credit/lending industries see those occupations from a risk standpoint, I have no idea.

I'm sure IRS knows wore than they do!

You can just say that you are an entertainer. It is a job. Or even that you do massage. As providers, if we care about investing and using our money right then we want to report our money so that we can invest, buy assets, and show we are doing something. I keep all my reciepts and write off everything from doctor visits, makeup, clothes, gasoline, milage, massage oils, ect. It is a legal job.  
But, I dont think I could write off condoms. lol

Sky

Re:Selling cosmetics from home is quite lucrative

THE bank you go to has an unusual staff. Most banks don't want off hand comments by tellers to scare customers away. The banks have to report large transactions to the govt anyway.

Right! If you can't show a source of income through paystubs, tax returns and so forth, most lenders won't take much of a risk with you. ( They'll want a high percentage interest rate at the very least.

I report my earnings to the IRS..And tell what I do for a living..I claim my car, rent, eletric, business dinners, supplies, travel expenses and ect.

It's not illegal to be an escort in Texas. But it is illegal to sell sex for money. And I only sell my time.
So why not report it? I pay my taxes and I come out happy and knowing that if ever busted...They can't hang me for not paying my taxes... And I keep my 1040's for 5 yrs instead of 3yr. Plus all my receipts...I use to work for H&R block for 3yrs...So I know to report it. 8o)


~Zoe Paige~

When you say this thread is about breaking the law. It merely a spirited debate.

In addition, with regard to the tax issue, let me say this.

I don't know about anyone else but I was requireed to take US History in grade school, High School, and later in College.

BAck in the mid 1700's right after the founding of this nation, there was a court case that set the stage for tax law from then on.

I forget the case but it went like this. A New England tax payer took advantage of some legal loop holes in the law. Consequently he filed what was probably the first income tax return with deductions. The local tax assessor hauled him into court on tax evasion charges.

The judge dismissed the charges stating the following: That what the defendant had done was perfectly legal, and that all citezens had a legal obligation to attempt to pay the least amount of  taxes possible. I wish I remembered that case.

But I have read in different places that all banks are required to report to the IRS if any one  deposits, or withdraws $10,000.00 or more, and on each occasion. Isn't that a problem for you?

at how easy it is to qualify for a home loan with no verifiable income. Good credit and good equity allow you to get a stated income loan at about 1/8% higher than a loan with verifiable income.

I still think it is a good idea to declare a believable percentage of your cash income. If you think dodging LE is tough, try a tango with the IRS!!

Seems that every escort who has a web sight announces her illegal activity to the world.

But, perhaps to be guilty of a paradox, it's a "legitimate"  question  to ask, and to answer(answers made for entertainment porposes only!).

I'm sure most escorts don't have a problem with keeping their income off the books because, despite a high per session rate, they probably don't earn THAT much. (They're ill-advised to share Linus's optimism about selling lemonade. When confronted by Lucy about his high per/cup rate of $20 each, Linus nonchalantly answered "Yeah it's high, but I onlyu need to seel one glass!)

Still, the really high-earners in this occupation may share the same problem as some drug dealers; they pull in more cash than they can uses w/o raising a red flag. Their biggest problem is laundering dirty money into clean. Remeber Johnny Dep's problem in Blow?  (f course drug dealing is the most profitable crime, and no mere "courtesan," regardless of the fee she could demand, would have such money "problems."

Geez. A lot of insightful remarks here along with a few very very basd ideas. Drug dealing is legal if you report your income to the IRS????? Arbitrarily calling your income exempt makes it it (legal)tax avoidance and not criminal tax evasion????? Guys, what are you thinking????? (Unfortunately this question is directed at those who are so out of touch w/ realty that you probably don't know who I mean.) You're flaky. No wonder most of the gals insist on getting their money up front!