Provider Income..what to do with it?

[cgt]

If I was a provider, I would open up an S corporation for a "consulting business". Assuming I generated $100k/year in revenue (for conversation sake, I know some providers make less, some more). I would report around $60k/year in actual revenue, I would then make sure to write off all expenses that I could. Hotel expenses / Travel expenses/ fuel expenses / meals & entertainment / leasing a vehicle / etc. In theory you're writing off around 1/2 the $60k, so you're only reporting around $30k in actual net income. You pay the taxes on the $30k which is either in your bank or spent on expenses that can't be written off (house). The remaining $40k, use for untraceable lavish/luxury goods (basically things that don't have titles attached to them) and be sure to save a portion of it. The portion you are saving, I would recommend investing into a really nice safe, place the safe in a nice storage unit. Safety deposit box is extremely stupid because the IRS and bank can get into it.


The reality of it is, the IRS or government doesn't really care what you do as long as you are paying your taxes every year. They go after you when you're not paying your taxes, the biggest mistake people in illegal trade make is not paying their taxes. It's easy to stay under the radar. Even if you get audited, you're writing off legitimate expenses and as far as they can tell, generating legitimate revenue as long as you are not writing off things you shouldn't, you'll be fine.

[charlestudor2005]

@cgt--even in your example, there's tax evasion to the tune of 40K per year. That's a felony. Probably not good advice even on a SHMB. In your example, you can manage the total income in such a manner as to reduce the effective tax. None of the ladies I know look good in orange jump suits.

[Missy Mariposa]

Originally Posted by LynnT

Who are any of us to judge anyone? You pay to fuck and we get paid to fuck, who the hell are we?

Whos to say her hubby didnt cheat on her 5 times and now shes getting hers? I dont agree with not telling the SO but who am I to judge what someone else does when I dont know them or the situation.

Human beings with thoughts and feelings. And legal sense. What you do for a living does not make up or define you as a person.

Tax fraud is a huge deal, and as others have said HE can be caught up in it. I don't care HOW she's getting the money. It's the fact she's hiding it and not paying taxes whilst in a relationship where someone else can suffer is just sad and wrong. This is equally wrong to a man hiding assets and his wife's life being turned upside down when the IRS finds out.

And CGT that's terrible advice, tax fraud is tax fraud. Period. A provider should report it all and be a decent human being. Everyone else has to pay taxes on their income, why shouldn't we?

[LynnT]

Originally Posted by Missy Mariposa

Human beings with thoughts and feelings. And legal sense. What you do for a living does not make up or define you as a person.

Tax fraud is a huge deal, and as others have said HE can be caught up in it. I don't care HOW she's getting the money. It's the fact she's hiding it and not paying taxes whilst in a relationship where someone else can suffer is just sad and wrong. This is equally wrong to a man hiding assets and his wife's life being turned upside down when the IRS finds out.

And CGT that's terrible advice, tax fraud is tax fraud. Period. A provider should report it all and be a decent human being. Everyone else has to pay taxes on their income, why shouldn't we?

Still nobody has a right to judge on hear say and certainly not a hooker board.

I personally pay taxes, have for 20 years.. and I certainly will Not claim every penny because its the right thing to do.. when our government gets their head of their ass and stops turning our country into a financial mess then I'll pay up.

[Eccie Addict]

Here I am a mod and I was so about to hijack this thread

[charlestudor2005]

Originally Posted by LynnT

I personally pay taxes, have for 20 years.. and I certainly will Not claim every penny because its the right thing to do.. when our government gets their head of their ass and stops turning our country into a financial mess then I'll pay up.

That's a shitty reason to avoid paying taxes. You think you're better than the rest of us honest workers that pay ALL our taxes that are due.

I think the government has it's head in it's ass from time to time also. But I support it no matter what. I am patriotic. I may disagree, but I will not tear our country down by failing to support it financially. We could all find shitty reasons to cheat.

You're one of the reasons we're in the financial shit we are in with our country.

Pay your taxes...all of them!!!! You cheat. And I'm not name-calling. You admitted it first.

[Naomi4u]

Originally Posted by charlestudor2005

That's a shitty reason to avoid paying taxes. You think you're better than the rest of us honest workers that pay ALL our taxes that are due.

I think the government has it's head in it's ass from time to time also. But I support it no matter what. I am patriotic. I may disagree, but I will not tear our country down by failing to support it financially.

You're one of the reasons we're in the financial shit we are in with our country.

Pay your taxes...all of them!!!! You cheat. And I'm not name-calling. You admitted it first.

+1 .....VERY well said.

[Naomi4u]

Originally Posted by Missy Mariposa

Human beings with thoughts and feelings. And legal sense. What you do for a living does not make up or define you as a person.

Tax fraud is a huge deal, and as others have said HE can be caught up in it. I don't care HOW she's getting the money. It's the fact she's hiding it and not paying taxes whilst in a relationship where someone else can suffer is just sad and wrong. This is equally wrong to a man hiding assets and his wife's life being turned upside down when the IRS finds out.

And CGT that's terrible advice, tax fraud is tax fraud. Period. A provider should report it all and be a decent human being. Everyone else has to pay taxes on their income, why shouldn't we?

+1 again.
Horrible advice @ CGT!

[sensualsanaa]

so hookers are supposed to file taxes?! Is there a certain criteria you should meet before filinf taxes? Like, do you have to make a certain amount with no other legal income?

Sorry, I know I'm hijacking but I'm a little surprised.

[charlestudor2005]

Originally Posted by sensualsanaa

so hookers are supposed to file taxes?! Is there a certain criteria you should meet before filinf taxes? Like, do you have to make a certain amount with no other legal income?

Sorry, I know I'm hijacking but I'm a little surprised.

Yep. You have to pay taxes on ALL your income ("from whatever source derived" -- that's straight out of the law).

Originally Posted by charlestudor2005

The risk for providers is high. If you are caught, the government will seize all, yes all, your assets as part of a criminal enterprise. Just like a drug dealer. Your house, gone. Your car, gone. Your jewelry, gone. And you in an orange jump suit.

[davidsmith0123]

I would not be making statements about not paying taxes or not paying all that is owed on any public or semi-public message board. Just saying.

[charlestudor2005]

Originally Posted by davidsmith0123

I would not be making statements about not paying taxes or not paying all that is owed on any public or semi-public message board. Just saying.

It's a little late for that.

Besides, we all have screen names, and we might be talking hypothetically. OTOH, no one even wants the angst that can come with an IRS investigation. The can go back 3 years (I think, it may be 5). If they find fraud, there is no limit to the number of years they can go back (as I understand it).

[Sweet N Little]

Originally Posted by charlestudor2005

That's a shitty reason to avoid paying taxes. You think you're better than the rest of us honest workers that pay ALL our taxes that are due.

I think the government has it's head in it's ass from time to time also. But I support it no matter what. I am patriotic. I may disagree, but I will not tear our country down by failing to support it financially. We could all find shitty reasons to cheat.

You're one of the reasons we're in the financial shit we are in with our country.

Pay your taxes...all of them!!!! You cheat. And I'm not name-calling. You admitted it first.

I agree about paying taxes but..

It IRS claims that almost half of all Americans cheat on their taxes..

The I.R.S. report concluded that proprietors of small businesses, investors and farmers cheated the most.

[Naomi4u]

Originally Posted by sensualsanaa

so hookers are supposed to file taxes?! Is there a certain criteria you should meet before filinf taxes? Like, do you have to make a certain amount with no other legal income?

Sorry, I know I'm hijacking but I'm a little surprised.

Wow. Yes are to file just like everyone else.

[cgt]

Originally Posted by Missy Mariposa

And CGT that's terrible advice, tax fraud is tax fraud. Period. A provider should report it all and be a decent human being. Everyone else has to pay taxes on their income, why shouldn't we?

If you want to report it all, by all means go ahead, my example was NOT to discourage someone from paying all their taxes in full but rather to encourage those that are NOT paying at all to at least contribute something.

You're also naive if you think most cash businesses are honest about every dollar that comes in the door. There are thousands of legal loopholes to minimize your actual tax liability, yet nobody questions those. I can make that $40k disappear in legal ways and keep your tax liability the same, but the fact of the matter is that you're doing something ILLEGAL. You technically don't have a right to ANY of your money, by not reporting all of it and keeping some cash you create a savings so that if you're ever in the situation where everything is taken away you have something to fall back on. It's no different than the drug dealers who are worth millions and then come out of prison with $0 because it was all taken away.

It's also fairly ironic that someone that is in a trade that their government deems illegal wants to repay that government back in full. Not judging you, just confused.