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Thread: Tax Question

  1. #1
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    Default Tax Question

    I do not want it to be on my record forever I am a dancer. Any suggestions on taxes? I def. do not want to get audited this year. Can I report Nannying if I have no real family to provide with with a 1099?

    Any suggestions? Please do not answer "just report entertainer", its pretty obvious. I do not want to explain this to future employers or family that some how stumbles upon tax info.

    I do eventually want to buy property, so this would help a ton!

    Thanks

  2. #2
    Veteran Member annabellz's Avatar
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    Default Re: Tax Question

    Its highly unlikely that youd be audited because of the name you use to describe the job you do as an independent contractor. Audits are usually triggered because the numbers dont add up.

    If you dont want to be called an entertainer perhaps a freelance agent or just simply - independent contractor. Nanny is a bit of a stretch. I mean something vague is okay but to say youre a nanny is a flat out lie and lying on your tax return is never a good idea.

    I dont really know. Perhaps other dancers have other more creative job titles.

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    Default Re: Tax Question

    Saw this in an accountants forum. I don't know how accurate this is, since it is an online forum, but the person who made this post says it's not necessary to fill in the "occupation" field:

    http://www.accountantforums.com/occu...-t12979p2.html

    Maybe you can ask a tax professional, or the IRS if you can leave this field blank.

  4. #4
    Banned Melonie's Avatar
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    Default Re: Tax Question

    if you're looking for an absolute guarantee that your dancing activities will never be discovered by family or by future employers, there is none. It's possible that your club could be busted tomorrow, and that you could be ( bogusly ) charged with lewd conduct, with prostitution etc. If that were to happen, a record of the bust would be added to criminal record / local media databases, and 1099 information would be the least of your worries.

    I also have to agree with Eagle2 that not making an entry for occupation on your 1040 form is an option. However, entering an IRS 'occupation code' is probably mandatory on your Schedule C ( although these occupation codes are quite 'generic' ).

    Where past 1099 info was concerned, the major 'negative' was really only generated by payers whose business names listed on the 1099 form were immediately recognizeable i.e Hustler, Ricks, Scores etc. If the payer's business name was XYZ corporation, in the past this left a whole lot of 'leeway'. However, today I suspect that both the IRS and other professional level background investigation services have established a database based on 1099 EIN's which can automatically link the fact that XYZ corporation is an 'adult' business.

    As to the degree of actual negative potential of having 1099's from 'adult' businesses on record, for the moment at least, there are really only two situations where this sort of detailed info will make its way into the hands of a potential straight job employer. The first is being in a field that requires a professional license i.e. nurse, CPA, etc. - where the state professional licensing agency may perform an FBI level background check, and where the findings from that background check may be included in your state professional license folder which is accessible by any prospective future employer. The second being 'sensitive' occupations where the employer chooses to perform in-depth background checks, such as law enforcement, gov't contractor / gov't employee positions involving security clearance, banking, etc. to name a few. In this latter case you'll know that your IRS info may be checked if the prospective employer includes the signing of an IRS release form as part of their job application.

    The larger question probably involves what could happen in regard to having 1099's from 'adult' businesses on record five years from now when the time comes to quit dancing / camming / 'adult' industry work and seek a 'straight' job. To put it bluntly, in an economic environment of sustained high unemployment and increased business regulation, the trend appears to be that prospective employers now have a long list of potential straight job applicants to choose from, as well as prospective employers now facing increasingly burdensome consequences if they must 'fire' and replace a newly hired employee. At the same time, improving technology is making it easier and less expensive for employers to have in-depth background checks performed. Thus the future will probably see an increase in in-depth background checks being performed / required by prospective employers in many different fields.

    On the flip side, working in an 'adult' business is NOT illegal. However, providing 'false' information to a state professional licensing agency or to a prospective employer IS 'illegal' ... or at least grounds for denial / dismissal. Thus where a scenario of seeking a professional license or straight job employment five years from now is concerned, present day attempts to obscure records of work in an 'adult' business may actually wind up being counter-productive. Similarly, present day attempts to obscure tax return entries regarding work in an 'adult' business may also increase the chances of an IRS audit.

    To paraphrase my initial comment, if you want a guarantee that a personal history of 'adult' industry work won't wind up being disclosed in the future, the only way to really accomplish that is to NOT WORK in the 'adult' industry.
    Last edited by Melonie; 08-25-2012 at 07:45 AM.

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    God/dess Zofia's Avatar
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    Default Re: Tax Question

    First off, the possibility of someone other than the IRS or your state Department of Revenue seeing what is on your tax return is very low. Section 6103 of the Internal Revenue Code generally prohibits release of that information unless you consent to it. The only non-consent times are by court order supported by probable cause and if the IRS needs to make a limited release of information to investigate you for tax evasion.

    Second, A routine credit check or even background check cannot get at IRS or state Department of Revenue information unless you fill out a IRS form 8821. Thus, you are in control of your tax information. Don't fill out a form 8821.

    Finally, even if you do fill out a form 8821, what the requester will get is your completed tax return which does list an occupation, if you put it on there. Further, if you file correctly, you will have a schedule C that may have a NAICS industry code number. The one most entertainers, athletes and public figures use is 711410, the most common NAICS for independent artists and entertainers is 711510.

    HTH
    Z

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    Default Re: Tax Question

    ^^^ technically true ... but a bit of clarification is probably in order. Where state professional licenses are concerned, consent for release of IRS records may be an integral part of the professional license application / renewal process. Obviously you don't have to agree to your IRS info being released to a state professional licensing agency, but in turn that agency may decide not to issue / renew your professional license - which obviously defeats the whole purpose given that it's impossible to work in a professional capacity without a professional license. Legally speaking, being granted a license is a privelege not a right ... therefore the licensing agency is pretty much free to establish any sort of reasonable ( new ) licensing criteria they choose ... including a requirement for disclosure of IRS records.

    I personally got 'burned' in this regard when applying to renew my Respiratory Therapist's license. Granted that my IRS 1099 records included dozens of easily recognizable payers involved in the 'adult' industry. My professional license was renewed since 'adult' industry work is not illegal, but I also got hit with a fine for 'umprofessional conduct' based on my 'adult' industry work. And the record of that 'unprofessional conduct' citation was added to my professional license file such that any prospective future health care employer would be immediately made aware of my 'adult' industry work history. If I really needed to return to work as a Respiratory Therapist, I am reasonably sure that I could find a job at a state prison, at an inner city clinic etc. where the working conditions translate into very few job applicants. However I am equally sure that I could never be hired by a major hospital or a private practice. One can only assume that other licensed professions, from teachers to accountants to attorneys / paralegals etc., could face similar scenarios. I would also add that, at the time I originally applied for my Respiratory Therapist's license 10 years prior to the renewal, there were no requests for IRS records release and no FBI level background checks performed by the same state professional licensing agency. This was the basis for my earlier comment that one needs to not only consider present day consequences, but also the potential future consequences, of creating a work history in the 'adult' industry.

    Similarly, where non-professional 'straight' jobs are concerned, it's certainly possible to refuse to complete the IRS release form when filling out a job application. But it is also possible, and indeed likely, that the prospective 'straight' job employer will question your possible reasons for refusing to release your IRS records, quickly conclude that there are plenty of other equally qualified job applicants to choose from who DID sign the IRS release form who therefore present far less risk of negative 'surprises', and quietly allow your job application to fall in the waste basket. As also pointed out earlier, in a scenario of sustained high unemployment providing large pools of prospective qualified employees, ever cheaper ever easier ability of prospective 'straight job' employers to access in-depth background info of prospective job applicants, and ever more expensive more complex financial and legal consequences of an employer dismissing an employee once they have already been hired, it is probable that IRS release requests and in-depth background checks will become SOP for a wider range of businesses and job types in the near future.

    On a different aspect, an increasing number of incidents have recently been reported where credit reports have begun to list such 'adult' businesses as StreaMates in the 'employer' field ... with those girls reporting such incidents claiming that they themselves never provided any 'employer' info. The actual source of this phenomenon is thus unknown at this time, but given the limited number of interchanges with credit reporting agencies it's probable that banks are providing this info based on 'pattern recognition' of payment deposits ( which is probably a byproduct of recent IRS 'suspicious activity' monitoring / reporting mandates on US financial institutions ). The future developments in regard to this phenomenon are obviously unknown since it's present source is unknown, but in an environment of increasing regulations it's a virtual certainty that MORE such reporting is probable in the future. Put another way, girls making regular bank deposits of checks from well known webcam hosts for payout of webcam earnings, checks from well known strip clubs for payouts of customer credit card tips funny money cashins etc. should be aware of this phenenomenon.

    Again, the bottom line here is that the only way to guarantee that a work history in the 'adult' industry won't ever appear or cause potential negative consequences in the 'straight' business world is to NOT WORK in the 'adult' industry in the first place !!! Trends tend to indicate that the probability of an 'adult' industry work history being discovered via official information sharing is increasing, probably making future negative consequences more of an issue than they already are.

    In the way of a personal comment, Zofia, you and I are both in the 'fortunate' situation of not really caring about the paper trail of our 'adult' industry work history. As the owner / operator of your own successful 'straight' business, and in my own case of being a 'professional investor', at this stage in our lives nobody is going to have a reason to perform in-depth background checks on us. Unfortunately, younger less established exotic dancers and camgirls are unlikely to share the same 'fortunate' situation.
    Last edited by Melonie; 08-25-2012 at 09:25 AM.

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    God/dess Zofia's Avatar
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    Default Re: Tax Question

    Quote Originally Posted by Melonie View Post
    In the way of a personal comment, Zofia, you and I are both in the 'fortunate' situation of not really caring about the paper trail of our 'adult' industry work history. As the owner / operator of your own successful 'straight' business, and in my own case of being a 'professional investor', at this stage in our lives nobody is going to have a reason to perform in-depth background checks on us. Unfortunately, younger less established exotic dancers and camgirls are unlikely to share the same 'fortunate' situation.
    I am still a CPA. Neither North Carolina nor Indiana requested tax returns when I applied. Lawyers are different though they still don't get 1099s from the IRS. They just get the returns.

    HTH
    Z

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    Default Re: Tax Question

    It seems like creating one or more shell corporations to route payments through is the only way to ensure that 1099 records don't become a problem in one's future.

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    Default Re: Tax Question

    ^^^ where camming and exotic dancing are concerned, having payments made in the name of your LLC / S-Corp / C-Corp does indeed provide an extra layer of 'insulation'. And this is particularly the case where that LLC / S-Corp / C-Corp is based in a state different than the one you reside in, as well as a state with limited corporate information disclosure policies. The states of Maryland, Nevada and Wyoming are popular due to their limited disclosure policies.

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