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Thread: what did you strippers say your "occupation" was on taxes?

  1. #26
    Banned Melonie's Avatar
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    Default Re: what did you strippers say your "occupation" was on taxes?

    This is why my club is moving away from funny money and encouraging dancers to use the square reader instead.
    In point of fact, clubowners have sound business reasons ( from their own viewpoint ) for moving away from the club's credit card merchant account being used as an 'intermediary' between club customer credit card charges and dancer's purses ...

    - every dollar received by the club's credit card merchant account will be counted as taxable club income by the IRS, unless the club can document that this customer money was paid out again for a legitimate business reason ( i.e. 'commission' payments to dancers ). Thus moving away from 'funny money', 'dance tickets', and other mechanisms which place the club's credit card merchant account between the customers and dancers saves the club a ton of financial record-keeping and 1099 payment reporting responsibilities ( and costs ) ... as the 1099 payment reporting responsibilities are transferred to the dancer's credit card payment processor.

    - When the club accepts a customer credit card charge into the club's merchant account, that money doesn't actually get transferred for days or weeks. However, clubs are expected to almost immediately pay out cash to dancers in exchange for 'funny money', 'dance tickets' etc. This places the club at risk of a financial loss if the customer later refuses to pay and a 'chargeback' is created against the club's merchant account. When customer credit card charges are 'directly' transferred to the dancer, it is the dancer and not the club who bears the risk of financial loss if a customer later refuses to pay.

    - When customer credit card charges are routed directly to the dancer via the dancer's credit card payment processor, this reinforces the perception that the dancer is in fact a self-employed 'independent contractor'. Besides offering an obvious advantage to the club in the case of a future 'employee dancer' lawsuit, this also reinforces club claims that new ACA 'employee health insurance' obligations / penalties do not apply to the club, but apply directly to the dancers.
    Last edited by Melonie; 08-31-2014 at 12:30 AM.

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    Default Re: what did you strippers say your "occupation" was on taxes?

    Will the IRS not know from the club reporting what we make with funny money, credit card charges, ect. that we work as a dancer? Or do they not report that/report it under our stage names?

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    Default Re: what did you strippers say your "occupation" was on taxes?

    I always listed myself as model. Then again I didn't deal with a lot of other issues like being paid. One club did pay me with a check but they were listed under the business name and they mostly owned restaurants and non sexual businesses.

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    Default Re: what did you strippers say your "occupation" was on taxes?

    Quote Originally Posted by MelissaRenee View Post
    Will the IRS not know from the club reporting what we make with funny money, credit card charges, ect. that we work as a dancer? Or do they not report that/report it under our stage names?
    The IRS will know exactly what is on your 1099 or W-2.

    No reporting is done under stage name. The clubs report under social security number or taxpayer identification number. The IRS gets W-2s and 1099s. They sort them by SSN or TPIN. Then they put all the same SSN or TPIN together. When you file your return, the IRS computer checks your schedule C and if there is not at least enough income on Schedule C to cover all the 1099s for your SSN and/or TPIN, a red flag goes up. Likewise, they check the W-2s for your SSN. If you don't report enough income for you W-2s, then the red flag goes up.

    Not all red flags get an audit sometimes they generate a request for information. Sometimes, nothing at all. But, I figure any red flag will get a RFI.

    HTH
    Z

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    Default Re: what did you strippers say your "occupation" was on taxes?

    I'm not understanding... What exactly happens if I put "model" on my tax forms? I'm currently employed as a tutor at my school and I also model on the side. So is putting "model" really lying? I've been so confused about this. I don't even deposit my cash in the bank because I'm scared to raise red flags. Someone help.

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    Banned Melonie's Avatar
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    Default Re: what did you strippers say your "occupation" was on taxes?

    ^^^ again, going back to the first page of this thread, when you file a US tax return with 'business income' ( Schedule C ) you must pick one NAICS code which most closely corresponds to the nature of your business. From there you can choose to 'call yourself' a model or a dancer or a makeup artist or anything else which is remotely related. However the NAICS code will still correspond to 'independent artists, writers and performers'. Based on that NAICS code, the IRS will infer things based on past history for that code category ... i.e. that the historical tax compliance rate is below average.

    Where you get into problems is attempting to 'call yourself' something which clearly doesn't actually fall under the NAICS code's general 'independent artists, writers and performers' heading ... like sales rep or customer service rep for example.

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    Default Re: what did you strippers say your "occupation" was on taxes?

    Okay! Not to be redundant or anything but just to make sure I'm understanding, let me say back to you what I believe you are telling me. You're saying when I file taxes I choose a code which is "independent artist". After I choose this code then I can put "model" and that is perfectly acceptable under legal grounds? I ask these for the same reason Ava asked, because I do not want "stripper" to appear in my background checks AND the person who does my taxes is a close family friend. Also, what happens if I simply do not file taxes? How will the IRS know? I plan on quitting dancing in a year.

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    Default Re: what did you strippers say your "occupation" was on taxes?

    ^^I think if u don't put $$ in ur bank and u don't buy big things like cars, etc. they won't know. And when your doing ur taxes u just enter the code that corresponds with independent artist, you don't have to say anything else about it unless you want to.

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    Default Re: what did you strippers say your "occupation" was on taxes?

    ^^^ yes ... 'model' is a specific occupation which falls under the general heading of NAICS 711510 'independent artists, writers, and performers'.

    as to 'forgetting' to file an IRS tax return, that's a calculated risk. However, as ava$ points out above, if you don't officially report earning that money, you can't officially spend it either without risking IRS attention. This means that such money reappearing as a down payment on a car loan / home loan / apartment lease, reappearing as college tuition payments, reappearing as bank deposits, being used to make any cash purchase greater than a certain threshold amount etc., can trigger reports back to the IRS. After receiving such reports, IRS computers will then attempt to match up the person named in the reports with a previously filed tax return. No match is likely to mean further investigation.

    Also, if your club issues you a 1099 next spring, there is absolutely no doubt that failure to file a tax return will be investigated by the IRS. If your club is investigated for any reason, the club's shift schedule and file of dancer job 'applications' ( i.e. real names, SS#'s ) could find its way to the IRS as well.

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    Default Re: what did you strippers say your "occupation" was on taxes?

    Okay. Tomorrow I'm going to ask if they issue 1099s ( I hope not). Anyway, I'm going to go ahead and file my taxes as a model. And I'm going to keep my receipts for what I spend on things specifically for dancing. My last question is I was thinking of logging how much I make in tips and how much I pay out. Is that necessary?

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    Default Re: what did you strippers say your "occupation" was on taxes?

    ^^^ yes it's necessary. also keep track of any money you spend on dancer outfits, shoes, etc.

    Also, be aware that being told that the club won't issue a 1099 next spring involves a matter of 'trust'. If next January rolls around, and the club's accountant points out that issuing 1099's would save the club hundreds of thousands of dollars in income taxes, a 1099 could 'magically appear' despite what you were told.

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