Do You (well, how do you) Disguise Your Escort Spending from your Accountant?

[JT Brooklyn]

I'm still amazed that there are Working Guys who advertise they take C/C and even more amazed at how many Clients do leave that paper trail!

 

D.Trump was right "Cash is King" and untraceable to its original owner!

[Racketjock]

I have always paid in cash and list it as an unapproved charitable gift. I don't claim it on schedule D, but do list it out for my accountant. I have had no questions, but also likely wouldn't be forthcoming with any answers.

[+ FreshFluff]

I imagine that accountants are used to seeing some unexplained spending, on mistresses as well as escorts. It's probably the rule rather than the exception among wealthy men.

[Guest]

I'm still amazed that there are Working Guys who advertise they take C/C and even more amazed at how many Clients do leave that paper trail!

 

D.Trump was right "Cash is King" and untraceable to its original owner!

 

It's not the case that no escorts report any of their income to the IRS. In fact, many of the more "professional" escorts that I talk to do report a majority of their income. I would think that those who take credit cards are, in fact, more serious about their work, and report most of their income (and certainly any income obtained from traceable sources). It would seem extremely foolish to take credit cards for escort services then not report the income. The IRS would never discourage people from reporting their income by reporting income sources to local law enforcement. In fact, I had a friend who worked for the IRS, and I can assure you that what people report to the IRS is kept with the highest level of confidentiality.

[whipped guy]

I had a discussion regarding escorts reporting their income about a week ago with a fellow poster... I knew of at least several escorts who indeed declared a certain percentage of their income... They were saving for the future... specifically to begin a "legit" business. A big red flag would appear if cash suddenly appeared from nowhere... so at least a reasonable percentage was reported... but I certainly doubt all!

 

Still, when the IRS does an audit they will give you a chance to give a reasonable explanation for any deductions... However, if they find income is not reported you are literally and figuratively screwed... Therefore the best strategy is report all income and if you are going to cheat take as many deductions as possible. If the IRS accepts your return then what you submitted was correct according to IRS standards... If they question the deductions you still have an opportunity to explain your reasoning... If they don't accept your reasons they make you pay... A much better position than having to explain unreported income...

 

However, in a virtually cash only business one must do a balancing act... so I would guess most escorts are paying a lower rate than Mr. Buffett's secretary... and some lower than Mr. Buffett himself.