“It’s that old principle of ‘only break one law at a time,'” said Mc Neill.
As a post on Sex Worker Helpfuls, which is re-blogged from another site, puts it, “You don’t want to get hit with a six figure bill and/or jail time at some point over the next few years because you weren’t doing your taxes.” The post goes on to detail necessary forms—1040 for an individual tax return, Schedule C for business income and 8829 for a home office deduction—and the need for income records.
“The illegitimate and stigmatized nature of this work makes handling money feel really dicey and kind of stressful,” said Savannah Sly, president of the social justice organization the Sex Workers Outreach Project.
It’s also why sex workers are sometimes excluded from the mainstream financial industry.
If your work is illegal, do you still pay your taxes?
How do you deposit large amounts of cash without alerting the IRS?
The most fundamental issue is how to deal with large amounts of cash, particularly in escorting.When she started posting her own tax advice, people asked her to file their returns, and her specialty was born.Now she runs her business alongside her mother, a.k.a.But even with all this guidance it can still be terrifying terrain, especially for those engaging in an illegal trade, and sex worker-friendly CPAs can be hard to come by.One sex worker who asked to remain anonymous told me that after she was upfront with an accountant about the nature of her work, he wouldn’t stop texting her after-hours. Kitts, the so-called Tax Domme, who has written the book, ”The Tax Domme’s Guide for Sex Workers and All Other Business People.” She was working as a tax preparer and phone sex operator when she noticed financial misinformation being passed around on sex industry message boards.