Senators Carl Levin, D-Mich., and Sheldon Whitehouse, D-R.I., introduced the Cut Unjustified Tax Loopholes Act, also known as the CUT Loopholes Act, or S. 268, on Monday. The bill was introduced in the midst of a congressional and White House showdown over the impending budget sequestration and growing calls for corporate tax reform, but builds on earlier legislation introduced by Levin in previous congressional terms (see Senators Introduce Bill to Cut Tax Loopholes). This bill, which closes loopholes and strengthens enforcement measures against offshore tax haven abuse, could raise nearly $200 billion over 10 years, according to estimates. [AT]
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Confirmed: There Is a Shortage of Good Accountants in the Sex Industry
Way back in March of 2010, we shared with you a plight in our country: there simply are not enough good accountants serving professionals working in the sex industry. At the time we learned of Companions (NSFW unless looking at semi-nude women is kosher), an escort service in Salt Lake City whose proprietors slightly underreported their income which resulted in a tax evasion conviction. We wondered if this particular industry was dry of good accountants and tax advisors who might be able to assist entrepreneurs such as these and the professionals they employ to avoid similar situations.
As happens from time to time, someone with direct knowledge reached out to us and we now have at least one person on record confirming our suspicions:
Hello Caleb,
I came across your March 23, 2010 article, Is the Shortage of Good Accountants in the Sex Industry an Opportunity? and felt compelled to write. You see, I am a tax preparer that has been servicing the adult industry since 2006, doing my best to help those in the industry with knowledge and compassion. What began as helping a few phone sex operators and dancers file their tax returns with dignity has grown into a big part of my business. So, the answer to your question is, yes, the shortage of good accountants in the Sex Industry is indeed an opportunity – for those who wish to practice with ethics and respect. If you wish, you may find more about me and what I do from my website www.taxdomme.com.
I am now eager to peruse the rest of your website.
Best,
Lori, The Tax Domme
For anyone in need of services, the Tax Domme has a new office location in downtown Seattle and if you’re looking to carve out your own niche practice, you can get in touch with Lori for tips on anything you might want to know. For example, what happens when a well-to-do john needs a companion on a round-the-world trip? If animals are a regular part of the business, is it better to lease or buy? Would whips, chains, spreaders, etc. purchased by dominatrix be eligible for a §179 deduction? All relevant questions that have no doubt come up in the world of the Tax Domme.
So here’s an opportunity to be had people. As long as you manage to keep things professional you can cater to a virtually recession-proof industry. Can’t say we never told you.
IRS Checks Sole Proprietorships Off Its “To Audit” List
This morning we shared some best practices on how to keep your ass out of hot water should an IRS audit befall you. The concern is that the government spending is out of control, huge deficits yada yada yada, the IRS will be knocking on more doors.
For the most part, everyone has been covered – large corporations, millionaires, possibly temptresses, the list is thorough.
Well, now it appears that the last entity type standing, the sole proprietorship will join the rest as an IRS target. IRS-criticizer-in-chief J. Russell George’s TIGTA issued another report but this time it cites sole proprietorships for “$68 billion of the $345 billion tax gap in 2001,” in underreported income. Web CPA reports George’s thoughts:
“Sole proprietors who underreport their income can create an unfair burden on honest taxpayers and diminish the public’s respect for the tax system,” said TIGTA Inspector General J. Russell George in a statement. “It is imperative that the IRS institutes policies to address this problem.”
How’s this for addressing a problem? The Internal Revenue Code, you my have heard, is mind-numbingly complex. Sole proprietorships, out of all the entity structures, are the least equipped to ensure compliance with the tax law. Auditing more of them will not result in increased compliance but rather enormous costs to their businesses. As for “diminish the public’s respect for the tax system,” didn’t that ship sail ages ago?
Tax Case Shows It’s Better To Give Than To Receive Notification of an IRS Audit
The Bible says God loves a cheerful giver, and the U.S. Tax Code says a […]