tuscl

Dancers not filing tax returns

Tuesday, September 2, 2008 5:19 PM
I had a few dancers tell me that they have never filed a tax return (as opposed to filing tax returns but paying not taxes). This is hard to believe, because they have house mortgages, car loans and bank accounts, with this information being reported to the government by banks. Some dancers even have second houses, so now there is rental income and another mortgage. Not filing tax returns sounds like bull shit talk to me.

14 comments

  • DickJohnson
    16 years ago
    believe it..its not like these girls are known for being responsible.
  • parodyman-->
    16 years ago
    Why do you care? Are you a cop or something?
  • twbird44
    16 years ago
    Not a cop Parodyman, far from it. I just get curious when someone tells me something diffent from the norm.
  • shadowcat
    16 years ago
    I know one favorite that does. She and her husband bought a house a few years back. In order to qualify for the loan, she had to declare 60K a year in strip club earnings and now must pay income taxes on that amount every year. She was not happy about that. Doesn't even have any kids to write off. I am sure that the dancers that have other jobs and have money withheld, file but I am sure that most of them do not include strip club earnings as part of their income.
  • Dain
    16 years ago
    I once reported a dancer to the IRS after she had me thrown out of a club. Most of them are vulnerable in that way.
  • ozymandias
    16 years ago
    Very, very few strippers have house mortgages, and most drive pretty crappy cars. And bank accounts? are you serious? retirement planning is generally the last thing on the mind of some 22 year old slut as she's sucking you off in VIP. I'll bet fewer than 5% of strippers file taxes. O.
  • mmdv26
    16 years ago
    Some jurisdictions require the club to treat dancers like regular employees. They declare some gross earnings amount each week from which the employee's portion of social security tax, and federal, state and local income taxes are also withheld. The dancer gets a payroll check for the net amount. At the end of the year they get a W-2, and are likely to file if they think they will be getting a refund. The employer also files quarterly and annual reports explaining all of this to the various taxing authorities. These reports include dancers social security numbers. Nationally, I don't know what percentage of dancers are subject to these reporting requirements. Obviously, what the dancer declares as earnings each week is likely a small fraction of what she actually receives from customers. If the "tip-out" is based on how many dances they do, then this record could be used by the IRS to reconstruct approximate "actual" earnings.
  • SuperDude
    16 years ago
    If you are a tax lawyer or a CPA, this might get you some OTC action when the IRS makes a move on the dancer.
  • arbeeguy
    16 years ago
    Hi mmdv26 Just curious, what do you mean by "some jurisdictions"? The entire USA, ie all 50 states, operates under the same IRS code. If you mean, "some club owners," or "some club tax lawyers", that sounds plausible.
  • shadowcat
    16 years ago
    I have a strip club buddy that is a CPA in NC. He has never cashed in on some free pussy because of it. Nice dream. I have perks to offer too but have not yet met the right one to offer them to.
  • mmdv26
    16 years ago
    Hey Arbeeguy. Point well taken. I started my post more-or-less in mid sentence. I'll try again. I have noticed in my discussions with dancers at various clubs in various jurisdictions (aka, city, county, state) that there appears to be some differences in the way their earnings are reported; or in some cases not reported. I spent my first five years after college in the tax department of a regional CPA firm, but 30 years ago I moved to a non-financial management position in a different industry. Admittedly, I am somewhat out of touch with current regs as they apply to employees, but I seem to recall that several years ago the IRS made a point of announcing that they would view dancers earnings under existing regs directed primarily toward waitstaff earnings, tips and gratuities. So, I am a bit surprised when some dancers tell me they make no reports to the owner of the club and receive no W-2 or 1099. I assume that I am misinformed about the currents status of what the IRS requires clubs to do. Now, here's where the "jurisdiction" part comes in. If the IRS requires someone (or class of persons) to be treated as an employee, subject to FICA, and federal income tax withholding, then generally states and localities (aka jurisdictions) that have an income tax or earnings tax correctly require withholding and reporting just like the IRS does. That should clarify my use of the J word. Not that it makes a damn bit of difference to me, but I wonder if there is a disparity in the way this is being handled? I suspect that the club where the bartender counts dances and the dancers get W-2's, may have had a run-in with the revenuers, and are now being monitored for compliance with employer/ee regs. Maybe the other clubs, with apparently no reporting, just haven't "been there" yet. Who want's to help on this one?
  • parodyman-->
    16 years ago
    "Who want's to help on this one?" I don't understand the big interest in if or how a dancer pays her taxes. Do you spend this much time worring about how everyone else you encounter pays their taxes? What about that paperboy? Hope that little SOB is reporting his Christmas tips.
  • zorro
    16 years ago
    Dancers are people. Some people don't file taxes. Fucking rocket science.
  • shadowcat
    16 years ago
    OOPs. I got a PM from from my CPA friend in NC. He has gotten perks.I can probably provide better perks than anyone. Free air transportation, room and board for just about anyplace that a women would want to go. But this is going to make for major trust. Since it is all done electronically now. I would have to know everything about her, including credit card information. Passports. And I would have to believe in getting a GFE . It may happen some day.
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