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    Default attn independent contractor dancers ... new national health care law requires ...

    (snip)"Beginning in 2012, under a little discussed mandate of the health care reform legislation, businesses will be required to report all payments in excess of $600 for services or merchandise to the Internal Revenue Service on a Form 1099.
    “Under the new law, businesses will be required to send a 1099 to other businesses for virtually all purchases,” said Chris Hesse, director of taxation at CPA firm LeMaster DanielsPLLC in Washington state, as quoted by Chris Edwards in a Cato Institute blog.

    “And for the first time, 1099s are to be sent to corporations,” Hesse said. “This is a huge new imposition on American business, costing the private economy much more than any additional tax that the IRS might collect as a result.”

    The health care bill mandate aims to collect lost revenue from companies that under-report on their tax returns. The provision is expected to raise $17 billion over 10 years."(snip)

    (snip)"In order to file the required 1099, a business would have to get a Taxpayer Information Number (TIN) from the vendor. Under current tax law, one copy of the form is sent to the IRS, and another copy is sent to the person to whom the business made the payments.

    The reporting requirement will affect business in two ways, according to The Boston Globe. First, most of a business’s revenue now will be reported to the IRS by the businesses that paid it, so understating large amounts of revenue will be more difficult. Secondly, it will force businesses to identify the recipients of their business expense payments.

    “There is no doubt this will be an administrative nightmare for many businesses in the first year or two,” Jamie Downey, partner at Downey & Co. said in The Boston Globe. “Have a large business-related meal at a restaurant, this will need to be reported on a 1099. Spend a week in a hotel in Waco, Texas; you will need to send a 1099.”(snip)

    (snip)"According to Lungren, the IRS is awaiting instruction from the U.S. Department of Health and Human Services on how to enforce the reporting requirement, according to The Hill's "On the Money."

    "[The IRS] told us that HHS is the one that is given the requirement to interpret this entire law," Lungren said. "That was an extraordinary response as far as I was concerned...I have never known HHS in the past to be responsible for interpreting tax law.""(snip)


    if allowed to proceed without changes, this provision of the national health care law will require independent contractor dancers to separately account for, and separately issue 1099's to ... clubs for house fees paid - DJ's, bouncers, house moms etc. for tipouts paid - hotel chains for 'road trip' expenses etc. ... if the dancer wishes to deduct these business expenses from her taxable income.

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    Default Re: attn independent contractor dancers ... new national health care law requires ...

    lol what? i could maybe understand issuing 1099s to djs because we are basically paying their wage, but why a hotel chain? why won't a receipt suffice?

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    Default Re: attn independent contractor dancers ... new national health care law requires ...

    ^^^ basically, for no other reason than because the new law says so !!! As a business entity, independent contractor dancers are covered under the new 1099 mandate as put forth in the national health care law ... and that mandate says that ANY other business that receives $600 or more per year in payments from the independent contractor dancer business must be individually accounted for and reported to the IRS via a dancer generated 1099.

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    Default Re: attn independent contractor dancers ... new national health care law requires ...

    oh. i just read that this is starting in 2012. hopefully, i'll be living in costa rica by then.

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    Default Re: attn independent contractor dancers ... new national health care law requires ...

    hopefully, i'll be living in costa rica by then
    I look forward to sharing ( tax free ) Margaritas !


    i just read that this is starting in 2012
    Yes this is the way the law is currently worded. However, like every other tax law, the rules are as changeable as the next congressional bill that passes ... and the gov't certainly is getting more desparate to increase tax revenues in light of ever deepening deficits.

    I also found this additional and important tidbit ...

    (snip)"The House bill would extend the Form 1099 filing requirement to ALL vendors (including corporate) to which they pay more than $600 annually for services or property. Consider all the payments a small business makes in the course of business, paying for things such as computers, software, office supplies, and fuel to services, including janitorial services, coffee services, and package delivery services.

    In order to file all these 1099s, you’ll need to collect the necessary information from all your service providers. In order to comply with the law, you would have to get a Taxpayer Information Number or TIN from the business. If the vendor does not supply you with a TIN, you are obligated to withhold on your payments."(snip) from

    In the context of independent contractor dancers, this means that if a DJ, bouncer, house mom etc. fails to provide you with their Social Security Number / Tax Identification Number, it then becomes the DANCER's legal responsibility to withhold estimated income taxes from payments made to said DJ, bouncer, house mom etc. and file / pay said estimated income taxes to the IRS and state on behalf of the DJ, bouncer, house mom etc.

    The obvious take-away here is that 18 months from now ( if not sooner via a new congressional vote ) the accounting and paperwork filing burden falling on independent contractor dancers to operate their businesses in a legal fashion will increase tremendously. Just as obvious is the fact that complying with the new law will be a real world impossibility ( i.e. how can a dancer withhold 25% of the money 'owed' to a DJ, and still pay 100% of the expected tipout, without digging into her own pocket for the additional 25% ? ).

    Thus the likely end result of these onerous new legal tax requirements, and especially so in light of increasing personal / business tax rates in 2011, could be that dancers will simply return to 100% 'off the books' cash operations. This is based on the same convoluted logic that applies to dancers in cities where local anti-strip club laws were enacted that provide equal legal penalties for brushing against a lap dance customer as for giving that customer a HJ or BJ. With the new legal tax requirements, it will actually be MORE likely that a dancer will attract unwanted IRS attention by 'messing up' a 1099 filing than if the dancer filed nothing whatsoever with the IRS ( including a tax return for her dancing income !). I'm certainly not recommending the latter ( in either case ) ... but in the short term at least choosing the latter results in major real world financial benefits.

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    Default Re: attn independent contractor dancers ... new national health care law requires ...

    i think you are absolutely right when you hypothesize that many dancers will probably just stop bothering with taxes at all. or they will just file them the way i do, which is like, totally in good faith but probably very inaccurate (and this is why i love my tax lawyer). and i probably would've been better off just not bothering filing taxes. and instead all kinds of shenanigans happened that my lawyer has to clean up now.

    and i love barack obama. really, i do. but i may have to love him from a distance. because without getting totally off topic, i am running out of reasons to stay in the states!

    however, i have a sneaking suspicion that by 2012, if the law does go into effect then rather than soon, the irs laws will have changed quite a bit and the strip club business model will be very different.
    Last edited by camille27; 05-02-2010 at 09:51 AM.

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    Default Re: attn independent contractor dancers ... new national health care law requires ...

    So it seems this also means that tip-outs will have to be tracked and reported. It's going to be tough to get those social security numbers from that crowd.

    This whole provision will have to be further streamlined to make it practical.
    Last edited by threlayer; 05-03-2010 at 07:34 PM.
    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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