
Originally Posted by
Melonie
I'll throw in that two NYC dancers were recently raked over the coals by the IRS as the result of registering new cars that couldn't be financially explained by their previous tax returns. Once the IRS came to the conclusion that the relatively low incomes officially reported by these dancers was a total work of fiction, the IRS then proceeded to prepare their own 'estimate' for the REAL incomes that these girls were probably earning. The IRS then hammered them with a bill for unpaid taxes on the IRS estimated amount of real dancing income going back three years ... plus penalties and interest ... which amounted to a back tax bill for more than $100,000 for each dancer ! Since the girls had no way to prove that they did NOT actually earn the amount of money the IRS estimated that they earned, they could not avoid having to pay. Not having authoritative 3rd party documentation of your income can be a 'two edged sword'.
Bookmarks