"HIgh End Entertainment" aka Pimp?

[Possi]

Holy Cow.

My client is going into business with a friend opening a club for "entertainment" this year. I told him he needed an accountant and a partnership return done. He's got an accountant for that business and a partnership return will be done next year.

Then he said he was also doing a business himself, aside from that one, and it will be "high end entertainment." His new voice mail message says something about "G Spot" ...oh my gosh.... His initials are GG so, I let it go until he told me about his new business.

I swear I think he's pimping.

As long as he claims all his income, oh my gosh....

Just another day in Paradise!!

[DTS]

Possi

At least you are getting new customers. These are tough times! Just go with it.

[S T]

Not for me

I don't think I could handle an interview on this client, nor would I want to represent at a Tax Audit. Way too much information!

Sandy

[Koss]

Entertainment

That sounds like a strip club to me.

It might actually be legal, even if it's kinda sleazy.

Who knows, you might get a bunch of new clients from the girls working there... but you probably wouldn't like doing those returns, either.

I've done a couple of those returns myself over the years.

They are usually signed on as independent contractors. They work for tips, and for a percentage of the club's established prices for table dances.

So these clients fit a certain profile, which goes something like...

Single mother, three children with three different last names, and...

Schedule C income of around $13,000, with almost no records and almost no expenses.



Textbook example of EIC due diligence.

BMK

[DTS]

Sandy

I don't think I could handle an interview on this client, nor would I want to represent at a Tax Audit. Way too much information!

I've known you for several years and have never known you to shy away from business. Why now?

Money is money, I always say.

D

[S T]

My Face

Sorry, I would not be able to answer the questions, some of which I am sure I wouldn't know the answers,

I blush easily and I don't think I want to do the research to make sure the deductions are an ordinary and necessary business expense.

Besides, I have these 2 challenging clients, one the US ctizen living in Argentina, and the NEW Business client, that probably has been scammed, that I am trying to figure out what to do with! Like I would need one more challenge of this nature to research.

Sandy

[DaveO]

No Joke.

I had a couple of guys who owned a strip club as clients. They sold the business a couple of years ago and opened up a mortgage brokerage. I should have realized the end was near.

[thomtax]

Schedule C income of around $13,000, with almost no records and almost no expenses.



Textbook example of EIC due diligence.

BMK

Koss, are you trying to say that "strippers" do not have a large clothing expense?

LT

[Zee]

I had a Dominmatrix once (not sure of the spelling) as a client. It was long ago. I don't think I'd represent oddballs anymore. It isn't worth the money. But, it was amusing.

[erchess]

Dominatrix

is I believe the word Zee was looking for. I presume that Zee;s former client did it for money (because otherwise why would she have felt the need to reveal this) but not all of them do it for money.

[Koss]

Business Expense

Some of that stuff might actually be deductible...

I wouldn't call it a uniform, but it certainly isn't something they can wear when they're not working.



BMK

[Zee]

is I believe the word Zee was looking for. I presume that Zee;s former client did it for money (because otherwise why would she have felt the need to reveal this) but not all of them do it for money.

Thanks for the spelling correction. I added the "m" at the last minute. She was a Schedule C. Later (after she left as a client), I read where she was arrested. I don't remember the charges, and her occupation and the news stories provided interesting reading for much of the Minneapolis rural area where I practiced.

[DTS]

With respect..

I presume that Zee;s former client did it for money (because otherwise why would she have felt the need to reveal this) but not all of them do it for money.

I believe a show of power and nothing else. Maybe, a bit of advertising...Grissom on CSI comes to mind.

[Possi]

Paid in $1 bills

That sounds like a strip club to me.

It might actually be legal, even if it's kinda sleazy.

Who knows, you might get a bunch of new clients from the girls working there... but you probably wouldn't like doing those returns, either.

I've done a couple of those returns myself over the years.

They are usually signed on as independent contractors. They work for tips, and for a percentage of the club's established prices for table dances.

So these clients fit a certain profile, which goes something like...

Single mother, three children with three different last names, and...

Schedule C income of around $13,000, with almost no records and almost no expenses.



Textbook example of EIC due diligence.

BMK

Yes, I had a stripper when I worked for tax-in-a-box and I swear she paid me in $1 bills! GROSS!
She took a costume expense, cosmetics, and would have taken her boob job if I let her!
I do not want high risk audits in my office. I've had 3 and they are not a fun day.
This guy was a cop. Interesting that he is delving in the dark now.
Your comments are hilarious! Thanks, I needed that!!
=)
~possi