View Full Version : Scores New York ????s
Melonie
02-11-2006, 05:29 AM
Ive never even filed my own taxes before, this is my first year dancing, and I keep my money in cash in a safe-deposit box, so should I be worried?
Did you file estimated taxes last January 15th ?
If the IRS has 'probable cause', it has the authority to have your safe deposit box opened and searched. When they find a pile of cash sitting in it, what impression do you think that will make ?
The point here is not just about reporting an income to the IRS... the point is reporting an amount of income that you can't prove is accurate. Say you work at Scores and for whatever reason aren't tremendously popular with customers. So you earn say $500 a night less the $200 stage fee and tipouts, and walk out of the club with $200. Say you do this 3 days a week or 150 nights a year, for a total of $30,000.
Now let's say that the IRS investigates some other dancers, and all of them are discovered to be earning three times this much. So the IRS decides that there's no way that you're actually earning only $30,000 and sends you a tax bill on a $90,000 income that the IRS 'estimates' that you are actually earning, which is what some other dancers are actually earning. What sort of receipts / records can you possibly present to the IRS to prove that you did NOT earn the $90,000 they say you did and simply tucked $60,000 of it into a mattress somewhere or blew the money on drugs/partying ? Hmmm ... a handwritten notebook ? a safety deposit box key ?
Hopefully the point about the real risk factor here is starting to sink in !!! This isn't about paying taxes on the amount of money you earn at Scores ... it's about potentially having to pay taxes on money that you didn't earn but that the IRS says you did earn (and you can't prove that you didn't).
Also, keep in mind the bottom line of the indibtments against the Scores owners - basically that they collected X total dollars from customers but only Y dollars appears on the company books, leading to the conclusion that the owners diverted Z dollars for their mansions, lavish vacations etc. A very effective legal defense for the Scores owners would be to attempt to show that those Z dollars which the gov't claims were diverted to mansions, lavish vacations etc actually went somewhere else. And what would be a very convenient 'explanation' of where else those Z dollars could have went ? - that the money was paid out to Scores dancers without the club keeping appropriate IRS records and without issuing 1099's to the dancers for the money.
I told you that this is going to get really ugly before it is over !
~
Tara86
02-11-2006, 09:44 AM
Im not trying to make a career out of this, im just doing it to pay for at the moment expenses, and no I did no file taxes last Janurary 15th because I worked as a lifeguard and my parents still do my taxes. Second of all I dont even have a credit card so how could they see my credit card records? As a dancer, Im loolking to save most of my money so I dont go around buying any fancy cars in cash or anything like that. I dont have a safe deposit box yet, but that was what my plan was, but if I have to, I will just keep my money with me. Third, I don't have a diffucult time making money. I made phonemial money at my former club and if I get hired there, I expect I will there as well. Sorry Im not trying to be rude just trying to stand up for myself.
Honey. the IRS case seize ALL of your assets.. That means ALL of your things, EVERYthing, right down to the last pair of panties you own. This is serious. If the IRS has their eye on the club called Scores, which they obviously do they will be looking at the people that work there. Hard. So, if you work there, that MEANS YOU.
It will be like going to the OB/GYN - open up and say ah. We are not by any means trying to tell you what to do. If you want to go to work at Scores. Please feel free, but don't freak out when you get audited by the IRS for unpaid taxes. I would emphatically advise you to listen to Melonie, she knows what she is talking about!!!!!!
With all the choices in Manhattan, why are you so hell bent to work at Scores?
Tara86
02-11-2006, 10:29 AM
So what if Im honest and actually pay my taxes?
Bad things happen to good folks sweetie, you should not take risks that don't need to be taken. Ultimately the choice is yours to make.
I wish you only the best in whatever you decide to do! :D
miabella
02-11-2006, 10:43 AM
then you shouldn't be talking about safe deposit boxes to stash your money in, should you. you shouldn't even be considering such a notion. you can freely open a bank account and everything.
if, you know, you were actually on the up and up and paying your taxes, which you said you have never done, despite making 'phenomenal money'.
Melonie
02-11-2006, 11:53 AM
Second of all I dont even have a credit card so how could they see my credit card records?
I was referring to the credit card records of Scores customers, which were processed by Scores at the club's cash register, and which Scores then paid out in cash to the dancers (less a processing fee one way or another).
Also, just as a reminder, if the IRS does pick up your name from working at Scores, they can investigate at least 3 previous years of work history. This potentially means checking on your income reporting and tax compliance when you worked at the previous club, wherever it was located. This also potentially means looking at your parents' tax returns for the past 3 years if they were reporting your income and claiming you as a dependent (the IRS computer will find your SS# on your parents' tax returns in about 12 milliseconds of searching).
So what if Im honest and actually pay my taxes?
This is the HUGE risk factor. The question is not whether or not you have been/are/will be honestly reporting your income and paying taxes on it. The point is whether or not the NY City and State and IRS auditors believe you when you tell them that you earned X dollars (even if you really DID earn x dollars). If the auditors don't believe you, and 'estimate' that you really earned twice as much money as you say you earned (even if you really DIDN'T), how can you possibly prove the actual amount of money that you earned to the auditors ? You certainly won't receive any official 1099 form from Scores which reports 100% of your income. You won't receive any receipt from a customer when they tip you $50. All you have is a hand-written ledger book where you yourself wrote down some dollar figures - figures which are not independently verifiable, and which the auditor can contend are simply 'creative writing'.
Look, it makes absolutely no difference to me one way or another what you decide to do about working for Scores. However, if 6 months from now the IRS is knee deep in your finances, as well as poking around in your parents' finances since they claimed you as a dependent, don't act surprised.
sxybrat07
02-11-2006, 11:53 AM
Slightly OT, so I apologize, but IRS = Biggest Meanest Collection Agency that Exists. Ever dealt with a pain in the ass bill collector? Well just wait til the IRS starts collecting money! Cars, Homes, Paychecks, Bank Accounts, all can and will, be seized. IMO most people are very careful with their taxes, no one wants an audit. Why would you want to work somewhere that could trigger an audit? Not worth it, IMO. Audits are not fun!!! Even IF you were completely honest every year with your taxes, if you don't have all the documentation to PROVE you were honest, you could still be screwed. Besides, if you worked at another club and made good money, why not go back there, and avoid the whole problem??
Melonie
02-11-2006, 12:01 PM
believe it or not, the biggest and meanest are the NY City Income Tax people. The way the law is written, NY City can collect income taxes on any work performed within the city limits, even if the person lives in NJ or CT or TX or CA ! They have an entire unit devoted to tracking down pro sports players who have games at Madison Sq. Garden, tracking down celebrities who appear on Broadway or NY City based TV shows, and other 'high earners'. They have much better funding for investigation and collection than the IRS does on a per taxpayer basis ! If the NY City Tax people are finally adding 'show club dancers' to their most wanted list ...
And of course, once the NY City Tax people latch onto a likely prospect, they call in the IRS and applicable state tax people as well.
If the IRS has their eye on the club called Scores, which they obviously do they will be looking at the people that work there. Hard. So, if you work there, that MEANS YOU.
Yes, and also keep in mind that this is not just a civil investigation involving unpaid taxes. This is a CRIMINAL investigation allegedly involving fraud and a bunch of other stuff. So not only are you talking about the IRS poking around, rest assured that the FBI and state/local law enforcement will be involved as well. Thus working for Scores is virtually assured to get a file started with your name on it with a variety of law enforcement agencies.
~
sxybrat07
02-11-2006, 12:06 PM
Eeep. Double the pain in the ass. Just doesn't sound like a smart situation to put yourself in to me.
former_LV_dancer
02-11-2006, 12:10 PM
After living here in NYC now a few years.....the taxes are a serious bitch compared to other states I've lived. They don't mess around in NYC. They want their damn money. You have to remember NYC is and always has been catered to the wealthy. If you aren't doing well for yourself it will spit you out.
Tara86
02-11-2006, 12:11 PM
Because I moved from Denver to Queens last summer for school, anyways I guess I didnt know that this stuff was that serious so theres no reason to be hostile, miabella. Iam going to HNR Block so they can help me with this years taxes. As far as Scores I am undecided about what I am going to do, I might still audition or I might go to Lace in Times Square. Thanks to everyone who wrote in and any more advice that anyone has for me feel free.
lares
02-11-2006, 02:13 PM
i don't think miabella was being hostile, it just seems like you were not listening to the advice the seasoned veterans were offering you. get a bank account...and keep your money in it no matter where you dance. like others said it's not whether you honestly report you taxes, but whether the IRS BELIEVES you were honest. and they aren't likely to believe you if your keeping your money in a safety deposit box where there are no records of deposits or withdrawals. no ones trying to insult you here, just help prevent you from a pain in the ass audit. so no need to get defensive.
i don't think miabella was being hostile, it just seems like you were not listening to the advice the seasoned veterans were offering you. get a bank account...and keep your money in it no matter where you dance. like others said it's not whether you honestly report you taxes, but whether the IRS BELIEVES you were honest. and they aren't likely to believe you if your keeping your money in a safety deposit box where there are no records of deposits or withdrawals. no ones trying to insult you here, just help prevent you from a pain in the ass audit. so no need to get defensive.
Now now, you guys.. you know ALL nineteen year old young woman know everything and what the heck do we know since we've been working in this industry for years and so forth.
I mean really, if she wants to go and screw herself by working at a high profile club that happens to be under IRS investigation - just who the heck are we to try and offer help in the way of experience and factual knowledge - since of course we don't know anything at all. Nope, not a damn thing.
Plus, that was not hostile, since you seem to have a hard time telling the differance, that was sarcastic.
Now, back to discussing Scores the club itself
lares
02-11-2006, 10:04 PM
lol crow...you are a true artist of sarcasm :rotfl:
Romulus
02-15-2006, 06:46 PM
We should get an update on Scores tomorrow since they have to go back to court.
If anybody hears anything please let me know.
kitana
02-16-2006, 11:12 AM
Ive never even filed my own taxes before, this is my first year dancing, and I keep my money in cash in a safe-deposit box, so should I be worried? Im not trying to act dumb people please, but I am really a virgin to the whole tax thing. My parents know that I danced so they agreed to help me.
DUH, yes you should be very fucking worried.
Have you ever heard about what goes on in an audit? It's very fuckin nasty stuff trust me. You do NOT wanna deal with that at ALL!
Let's see if I can compare this to something easier to understand.
Would you ever deal drugs? Or work for someone who deals drugs? (different illegal activities I know guys!) It's kinds the same thing.
You don't go look for trouble. Plain and simple. This is trouble that you are looking to get involved with. That's a bad, bad, thing!
(Again I agree, this is why only 21yr olds and over should dance.)
Romulus
02-16-2006, 03:07 PM
Goldring and the other indicted bigwigs at Scores were supposed to go back to court today. Has anybody heard anymore news?
Melonie
02-16-2006, 03:26 PM
Nothing so far in either the NY Post or the NY Times. However, if this is a preliminary hearing, you can be 99.99% sure that they all pled not guilty, had their bail continued, and got put on the court docket with a trial date at least 6 months from now ! Not exactly newsworthy stuff compared to the original story about the tax evasion and money skimming indibtments.
However, if they did plead not guilty (which is a virtual certainty) then the DA now really has to make his case in court, which means turning loose the local/state cops and FBI, as well as turning loose the NYC and NY state tax people and the IRS.
~
Romulus
02-16-2006, 03:34 PM
No news is good news I guess. Thanx Melonie.
Melonie
02-19-2006, 10:23 AM
Hopefully one of the dancers actually working at Scores will keep us posted if/when they start to see a new group of 'suits' spending a lot of time in the manager's office area !
kitana
02-26-2006, 05:20 AM
Just curious if anyone has any new updates about this whole "tax scandal"?
DutchezzBlayzze
02-26-2006, 11:54 AM
Hello Tara, This is just my 2 cents, It's slighty off the topic but it would do you much better to have a bank account instead of safe deposit box for the same reason the others said plus they aren't really insured so if, god forbid a fire or meltdown in the bank you can lose whatever you have in that box your money is guarenteed insurance within an account. But anyway good luck in whatever you do! Smile;D
dasha
02-26-2006, 03:03 PM
ScoreWest sucks. Those guys deserve to go down. Scores West is not that great. Girls get nasty in the $1000 or up for an hr in the rooms. Glad I do not work there.