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Thread: Getting questioned at bank for making ca$h deposits...

  1. #76
    Banned Melonie's Avatar
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    Default Re: Getting questioned at bank for making ca$h deposits...

    I was told it was random...but then I found out later by the auditor that they were assessing a multitude of entertainers.
    It appears that the tax people in both the US and Canada have figured out that 'entertainers' are a potentially ripe source of additional tax revenue ! In fact the IRS has received a special appropriation from the US congress to set up a new targeted enforcement unit for 'Adult Businesses' ... which under their definition also includes strip clubs and 'strippers'.

    As Alena or myself or anybody else who has ever been audited can tell you, where a 'cash business' is concerned half of the battle is having operated your business in a 'professional' manner - which means keeping accurate books on all business activities, which means filing accurate and timely estimated taxes and tax returns etc. If the auditor sees from the state of your business books that you know what you're doing and that you're (relatively) accurate and complete with the entries made in those books, they are quite likely to accept the figures you have reported as being accurate and true numbers. At that point the auditor will work 'with' you in going over any details the auditor wishes to clarify.

    However, if your business books are a mess (or there are no business books), and if many of the entries look questionable, then the auditor may begin to doubt the accuracy of any of the entries you have made. This lack of credibility will be compounded if you also were late in filing estimated taxes, late in filing tax returns, made major errors in your tax returns etc. If this happens, then the problem I spoke about earlier re not having any official income reports to prove how much money you DIDN'T earn can start to work against you big time.

    If the auditor sees enough bizarre stuff in your business books to doubt the credibility of your entries, all of a sudden you become wide open to the auditor assuming that you are cheating on taxes re undeclared income, and may go into 'forensic accounting' mode ... i.e. attempting to piece together your total cash flow, and attempting to 'estimate' the amount of actual income that would be necessary to support that cash flow. At this point the 'impressions' of the auditor may also come into play, i.e. you're carrying a Coach purse, you drive a Corvette, your credit card shows shopping sprees at Bloomingdales / Tiffany etc.

    If and when this happens, you may wind up with the auditor 'estimating' levels of income that are much higher than those you reported, and the auditor presenting bills for additional taxes due, as I posted about earlier. The auditor can also 'estimate' higher levels of actual earnings for at least three years (if you have been dancing for that long), meaning that if you are caught up in this situation the total bill for additional taxes plus penalties plus interest can potentially hit the $50k or even $100k ballpark ! And because you lack official documents ( forms W2 or 1099 in the USA ) to conclusively prove how much money you did and DIDN'T earn, because all of your dancing income numbers are essentially self-generated (meaning that technically you could invent any numbers that you chose to), and because the 'professionalism' thus credibility of your business books was brought into question, any attempt you make to try and mitigate this additional tax bill in court will essentially wind up being your word against the word of an auditor ...
    Last edited by Melonie; 12-18-2007 at 03:05 AM.

  2. #77
    Veteran Member StuartL's Avatar
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    Default Re: Getting questioned at bank for making ca$h deposits...

    Quote Originally Posted by Katrine View Post
    Do we all have to watch the same retarded anti-money laundering video or does each company create their own?
    In the UK, every firm watches the same film. To be fair, it is years old and massivly outdated. I don't think anyone could identify a money launderer having watched that film.

    The film even explains that criminals use multi jurisdictions and products to move their money, but then doesn't explain the what or how. This means that if you watch the film and take it 'as is' every other transaction around the world is suspicious...

  3. #78
    Banned Katrine's Avatar
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    Default Re: Getting questioned at bank for making ca$h deposits...

    Is it the film in which the woman money-launderer speaks in Russian, Spanish, and a few other languages? I thought she was so cool, total criminal mastermind, lol!

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
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  4. #79
    Veteran Member alenadowns's Avatar
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    Default Re: Getting questioned at bank for making ca$h deposits...

    In Canada they can go back 7 years...and audit up to 5!

    I was fortunate they only audited 3.

    Melonie is 100% correct. The auditor can tell you that you made 3-4-5X what you claimed...and it is up to YOU to prove that you didnt.

    I made the mistake of walking into the auditors office carrying my LV, and dressed respectably expensive..

    For those without an accountant....the DayTimer is a dancer's savior...log your pay & dances & tips, along with ALL your expenditures. Or you could end up with paying way more than you bargained, it you cant prove that you didnt make it.

    On a side note...gifts from customers are also classified as income. It is a transaction for services rendered. You customer gave you something as a thank you for allowing him to be a customer..It is classified as a tip!

    Sad but true

    Also FYI...IRS and CRTC do have access to these forums. I know this because my auditor presented me with print outs of my postings from this forum and another Canadian one.
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  5. #80
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    Default Re: Getting questioned at bank for making ca$h deposits...

    Random: I was watching a mafia porn and it had a scene on money laundering. As in, the girls all had money hanging out to dry and were washing it in buckets.


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  6. #81
    Veteran Member XxAmber89xX's Avatar
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    Default Re: Getting questioned at bank for making ca$h deposits...

    If you ever have to go into the Revenue offices for an audit, you wanna make yourself displeasuringly gross (i know, difficult for us dancers to do) but, I know a guy that soaked his garments (shirts and pants) in beer a few days prior and the night before left them at the gate to his cow pasture... he said he was heaving when he drove downtown to their offices in his $25 car... they expected him to owe them over $2Million so it wasn't no small deal... anyways when he showed up all stinky as stale beer and cow pie, they escorted him to a room in the back and left him alone for over 2 hours... then some guy in a suit told him he is free to go and escorted him into the back alley... i think they thought that was where he belonged...

    ya, i know, kinda gross, but it makes me chuckle whenever i think of this story...

    i just wanted to say that wearing D&G or LV doesn't quite give you much ammo to say that your innocent and try and prove your case.
    Oh Canada, we stand on cars and freeze...

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