Dancers not filing tax returns
twbird44
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
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.
I'll bet fewer than 5% of strippers file taxes.
O.
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.
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.
I have perks to offer too but have not yet met the right one to offer them to.
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?
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.