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Thread: Claiming Tips

  1. #26
    Banned Melonie's Avatar
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    Default Re: Claiming Tips

    ^^^ and the tax man will also go .... 'hmmm, another dancer that works at the same club you do told the New York / Las Vegas / wherever news media that she regularly earns $2000 a night !' The tax man will also go ... 'hmmm, according to our database, in New York / Las Vegas / wherever you need to be earning $15k / $20k / whatever per year just to cover the basic cost of average rent + average utility bills + average grocery bills'.

    Finally the tax man will go ... 'hmmm, we estimate that a dancer working at your club typically earns $1000 a night, and the club's schedule shows that you worked 150 nights last year. Thus we estimate that you actually earned $120,000 more than you reported to us in income last year. Furthermore, we estimate that you owe us $35,000 more than you paid us last year in back taxes. And while we're on the subject, we estimate that you did exactly the same thing for the two previous years !!! So please send us a check for $105,000 by the end of this month, and we'll knock off charging you additional penalties !

    ~
    Last edited by Melonie; 07-18-2008 at 10:13 AM.

  2. #27
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    Default Re: Claiming Tips

    If course, it's easy to say "as if you wouldn't pay taxes" when one has the money to pay the taxes with

    Some of my friends were wondering why billionaires bother with tax cheating, since the consequences of getting caught and punished are quite big in dollar terms for them. But I guess everyone thinks similarly about paying tax.
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
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  3. #28
    Banned Melonie's Avatar
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    Default Re: Claiming Tips

    Some of my friends were wondering why billionaires bother with tax cheating, since the consequences of getting caught and punished are quite big in dollar terms for them.
    A - it's orders of magnitude more difficult to catch a billionaire cheating on taxes, due to the existance of anonymous offshore banking, foreign shell corporations, trusts, and a plethora of other loopholes and tax shelters

    B - even if a billionaire is accused of cheating on taxes, the long arm of the IRS isn't actually global. Thus the billionaire has the option of flying his private jet to any number of tax haven countries, renouncing his citizenship, and giving the IRS the middle finger ! And with millions / billions of dollars worth of assets needing to be 'parked' in that tax haven country's banks, obtaining 'replacement' citizenship is virtually automatic.

    C - from a strategic standpoint, the US gov't doesn't want to alienate any US billionaires ... because the potential lost tax revenues if the billionaire leaves the country would be fare worse than the lost tax revenues from a little 'offshore money shuffling'.

  4. #29
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    Default Re: Claiming Tips

    Quote Originally Posted by Melonie View Post
    A - it's orders of magnitude more difficult to catch a billionaire cheating on taxes
    ...
    B - even if a billionaire is accused of cheating on taxes, the long arm of the IRS isn't actually global.
    Yes, what we were talking about was that (although I agree with you that it's "harder" to get caught) the potential losses are greater, so you would imagine people might be more risk adverse as they get richer (ie. they have more to lose). But many people get rich by betting against small probability disastrous events, so hey - maybe that's part of the reason for rich tax cheats.
    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

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    Default Re: Claiming Tips

    Quote Originally Posted by Lysondra View Post
    Lysondra Cat is proud of UltraCat.
    Haha

    Oh my, last night I closed so I saw what the other closing driver claimed. Only his credit cards for a grand total of $3.83. That's right. Less than FOUR DOLLARS for 7 hours. Come on, who is really going to believe that? I'm sure he looks like a jackass next to my honest $49.

  6. #31
    God/dess VenusGoddess's Avatar
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    Default Re: Claiming Tips

    Just an update for anyone who claims CC tips only:

    My friend just got another notice from the IRS stating that they are auditing her for the previous 3 years (the time she's been waitressing...and coincidentally only claiming CC tips). So, by the time they're done with her, I'm thinking that she'll have no ass left, and be missing some arms, legs, etc.

    And, she said that they reconstructed her spending. Even though the cash never hit her account...they could tell by her spending that she was spending money that she "shouldn't" have had.

    So, for those of you who think that because you spend cash that never hits your accounts and therefor is "untraceable"...think again. It could be you getting hit with some massive "payback" for the IRS.

    I'll update again when they finish reaming her this time around...we'll see what the final tally is.

    UV...make sure you check your paystubs to ensure they are taxing the right amount of money. I worked at one bar where no one claimed cash tips and they manager was "refiguring" my tips and not reporting all of it (it affects how much the bar had to pay in taxes, as well). Just a heads up.

  7. #32
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    Default Re: Claiming Tips

    Will do.

    I talked to another driver last night that says he claims about $1 per delivery that he makes. He says the government takes too much of his money anyways, and that so far he's had no problem. Uh yeah, maybe not YET. Especially since he says that he lives off of his tips and considers his paychecks "free money" because I guess he doesn't use them to pay bills with. Doesn't that put him at a bigger risk for an audit when he's living off his tips, yet claiming a dollar a delivery (basically around 15-25 deliveries)? Wouldn't the government go "hmmm?"

  8. #33
    Banned Melonie's Avatar
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    Default Re: Claiming Tips

    ^^^ again, the IRS only does random audits on 1-2% of Americans, so on a purely random basis your friend has a 98-99% chance of getting away with what he's doing without ever attracting IRS attention. But if the IRS is handed some 'reason' to take a specific look, i.e. a cash transaction report being filed, a new house or car being registered, an 'unrelated' investigation of his employer etc., once the IRS begins digging they usually don't stop !


    And, she said that they reconstructed her spending. Even though the cash never hit her account...they could tell by her spending that she was spending money that she "shouldn't" have had.

    So, for those of you who think that because you spend cash that never hits your accounts and therefor is "untraceable"...think again. It could be you getting hit with some massive "payback" for the IRS.
    yup, as discussed in tons of other threads, the IRS now has sufficient computing power and sufficient 'automatic reporting' links to banks / brokers / colleges / car title agencies / real estate title agencies / credit card companies etc. that it can utilize the 'every dollar being spent must be a dollar earned' principle to reconstruct / estimate actual income levels in the total absence of income documentation.

  9. #34
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    Default Re: Claiming Tips

    I havent claimed for the past 3 years. Meaning I didnt file at all..

    From what I have been told I can file after 3 years max. Im in Texas btw.

    And in those 3 years I only danced and RARELY. (I had a pretty awesome bf that paid a lot of shit)

    and had ZERO bills in my name in that time as well.

    What I'd like to know, is now that I am going to file over those years to make up... what do I claim?

    I dont remember what I made, or how much I spent on outfits, muchless what dates.

    GAH IM LOST.

    help anyone..??

  10. #35
    Banned Melonie's Avatar
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    Default Re: Claiming Tips

    your situation falls 'outside the box'. I have no idea how the IRS handles the topic of random audits for people with names and SS#s that do not appear in its database because they have never filed a tax return.

  11. #36
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    Default Re: Claiming Tips

    Well before the whole 3 year stretch, I had jobs those previous years and filed and it was all dandy till that bf, and the rare dance nights.. and yeah.

    im so lost.

    thanks for the help nevertheless!

  12. #37
    Featured Member Sveta's Avatar
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    Default Re: Claiming Tips

    Quote Originally Posted by person View Post

    And mr tax man goes: So you earnt $12k and somehow own a $18k car with only a $10k loan. Hmmm.....
    This is the kind of thing that makes me scream. I own a car that would have been impossible to purchase flat-out on my earnings. My aunt paid off my car loan for me. But the IRS wouldn't know that; all they'd see is my name on a paid-off car that I couldn't afford on my reported income.

    I also have well-off family in another country that help me out quite a bit. (So much for the "every dollar spent is a dollar earned" theory.) And I don't pay rent. (There goes the "you must have spent $xx on living expenses b/c that's average for your area" theory.) The IRS can't audit my non-American relatives...so they'd probably just assume I was under-reporting and slap me with a bill, b/c the truth is inconvenient for them and wouldn't result in them getting any more $$$$$ out of me.
    Last edited by Sveta; 08-31-2008 at 06:53 AM.
    ~'A Seven Nation Army Couldn't Hold Me Back'~

  13. #38
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    Default Re: Claiming Tips

    In point of fact, the IRS will absolutely acknowledge such financial 'assistance' from your aunt - from well-to-do foreign relatives etc. as being legitimate. However, there is no denying that IRS computers will be FAR more likely to red flag your tax return since the financial assistance received from your family isn't documented in any way that the IRS would automatically be informed of. And I agree it sucks that the IRS is able to place 'honest' taxpayers in the position of being presumed guilty and forced to 'prove their innocence'.

  14. #39
    Featured Member Sveta's Avatar
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    Default Re: Claiming Tips

    ^^ yeah...that's why I'm frustrated. Getting in trouble for something you actually did is one thing, but there are few things in life worse than getting in deep shit for something you didn't even DO. And feeling like a sucker for being honest, b/c it obviously didn't do any good.

    If I did get audited (God forbid), I don't even see how they'd be able to look into or confirm what my family gives me if they're in another country.

    Oh well. Two more years, and I'll be done school and can get a day job with a nice neat prove-able paycheck.
    ~'A Seven Nation Army Couldn't Hold Me Back'~

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    God/dess threlayer's Avatar
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    Default Re: Claiming Tips

    By claiming all income, you also need to claim all expenses. This will be on a Schedule C.

    You could get a pretty simple tax book and start learning what you specifically need to know. Believe me, the more you know about the tax situation that applies to you, the more of your income you'll be keeping. and the less you know the more risk you take and the more you'll eventually have to give to the govt.

    Yes, we guys like strippers, but we work hard for our money too, and we have to pay taxes. A lot of you make more money than we do. Strippers are NOT privilege characters who can just get away with everything.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

  16. #41
    Featured Member Sveta's Avatar
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    Default Re: Claiming Tips

    Quote Originally Posted by threlayer View Post
    Strippers are NOT privilege characters who can just get away with everything.
    ~'A Seven Nation Army Couldn't Hold Me Back'~

  17. #42
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    Default Re: Claiming Tips

    ^^ It's not that we don't think you actually do.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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