Tag: IRS

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IRS Sex workers taxes

The first step of good tax planning is good recordkeeping

Year-round tax planning is for everyone. An important part of that is recordkeeping. Gathering tax documents throughout the year and having an organized recordkeeping system can make it easier when it comes to filing a tax return or understanding a letter from the IRS.
Good records help:
• Identify sources of income. Taxpayers may receive money or property from a variety of sources. The records can identify the sources of income and help separate business from nonbusiness income and taxable from nontaxable income.
• Keep track of expenses. Taxpayers can use records to identify expenses for which they can claim a deduction. This will help determine whether to itemize deductions at filing. It may also help them discover potentially overlooked deductions or credits.
• Prepare tax returns. Good records help taxpayers file their tax return quickly and accurately. Throughout the year, they should add tax records to their files as they receive them to make preparing a tax return easier.
• Support items reported on tax returns. Well-organized records make it easier to prepare a tax return and help provide answers if the return is selected for examination or if the taxpayer receives an IRS notice.

Download this spreadsheet to keep track of all of your expenses and income.   Expenses Spreadsheet

In general, the IRS suggests that taxpayers keep records for three years from the date they filed the tax return. Taxpayers should develop a system that keeps all their important information together. They can use a software program for electronic recordkeeping. They could also store paper documents in labeled folders.
Records to keep include:
• Tax-related records. This includes wage and earning statements from all employers or payers, interest and dividend statements from banks, certain government payments like unemployment compensation, other income documents and records of virtual currency transactions. Taxpayers should also keep receipts, canceled checks, and other documents – electronic or paper – that support income, a deduction, or a credit reported on their tax return.
• IRS letters, notices and prior year tax returns. Taxpayers should keep copies of prior year tax returns and notices or letters they receive from the IRS. These include adjustment notices when an action is taken on the taxpayer’s account, Economic Impact Payment notices, and letters about advance payments of the 2021 child tax credit. Taxpayers who receive 2021 advance child tax credit payments will receive a letter early next year that provides the amount of payments they received in 2021. Taxpayers should refer to this letter when filing their 2021 tax return in 2022.
• Property records. Taxpayers should also keep records relating to property they dispose of or sell. They must keep these records to figure their basis for computing gain or loss.
• Business income and expenses. For business taxpayers, there’s no particular method of bookkeeping they must use. However, taxpayers should find a method that clearly and accurately reflects their gross income and expenses. Taxpayers who have employees must keep all employment tax records for at least four years after the tax is due or paid, whichever is later.
• Health insurance. Taxpayers should keep records of their own and their family members’ health care insurance coverage. If they’re claiming the premium tax credit, they’ll need information about any advance credit payments received through the Health Insurance Marketplace and the premiums they paid.

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IRS Sex workers taxes

Release The Kraken, District Court Orders. All Crypto Investors Should Pay Attention.

The Internal Revenue Service is conducting an “ongoing, extensive investigation involving substantial IRS resources” into cryptocurrency holders. As part of that investigation, the IRS is serving “John Doe” summons on various cryptocurrency companies, seeking court orders to require cryptocurrency exchanges to turn over account holder’s names and other key identifying information. On May 5, 2021, the United States District Court for the Northern District of California ordered Kracken to turn over key account information for its users, including (1) Name, (2) Taxpayer ID Number; (3) Date of birth; (4) Physical address; (5) Telephone number; and (6) Email address. For cryptocurrency investors who have unreported crypto – whether in an account with Kraken or anywhere else – the IRS is looking for you.
The IRS first filed a petition for leave to serve a John Doe summons, which would have required Kraken to provide specific account holder information to the IRS, on March 30, 2021. Rather than granting the petition, the Court issued an Order to Show Cause, requiring the IRS to explain why the petition, which requested a vast array of information, should not be denied for the failure to meet the “narrowly tailored” requirement of the statute authorizing such summonses. (You can read more about that here). The IRS responded by both reducing the scope of information requested and by explaining that when it comes to cryptocurrency, a lot of information is needed to determine whether or not a taxpayer is skirting the rules.

The IRS explained to the court that more than just a taxpayer’s name, address, date of birth, and taxpayer identification number are needed to determine whether there is a tax compliance issue. The extensive information is needed because the IRS is aware of account holders whose information was handed over in the Coinbase case that used “aliases, false addresses, or post office boxes, fictitious entity names, or other means to disguise their true identities, and taxpayers who created false identities are more likely to evade their taxes.” (emphasis added). In fact, in response to the Coinbase John Doe summons, over 170 account holders used a pseudonym instead of their legal name to set up an account. Driving home its point that it needs more than just account holder names and taxpayer identification numbers, the IRS explained to the court that “more than 750 [Coinbase account holder] taxpayers remain unknown to the IRS. These still-unidentified taxpayers had cryptocurrency proceeds that exceeded $100,000,000 that the IRS cannot examine because the limited identity information it received precludes a positive identification.” Put differently, from the Coinbase John Doe Summons alone, the IRS is still seeking names of 750 account holders who realized over $100,000,000 in proceeds and the IRS cannot identify them without additional information.

It is no wonder, then, that the IRS launched Operation Hidden Treasure to identify and pursue crypto account holders who have not reported and paid taxes on their crypto gains. And in asking the court in Kraken to allow access to specific account holder information, including a history of changes to the user’s profiles, the IRS has demonstrated its ability to learn from past mistakes and nimbly make adjustments. After reviewing the IRS’s response to the Order to Show Cause, the Court granted the modified petition. IRS Commissioner Charles Rettig applauded the ruling, noting, “There is no excuse for taxpayers continuing to fail to report the income earned and taxes due from virtual currency transactions. This John Doe summons is part of our effort to uncover those who are trying to skirt reporting and avoid paying their fair share.”

Importantly, the Court leaves open the possibility that further challenges to the summons may be brought. “Any further disputes as to the scope of the summons would benefit from adversarial briefing.” But the IRS now has the leave of court required to serve the John Doe summons. The statute that authorizes the summons process provides “any person who is entitled to a notice of a summons … shall have the right to begin a proceeding to quash such summons” within twenty days of service. A motion to quash is typically filed by a taxpayer whose information is being sought by a summons. In this case, it isn’t clear whether Kraken will notify its account holders when it has been served and the twenty-day clock to file a motion – for Kraken and for its account holders – begins. Even more uncertain is whether a motion to quash would yield any measurable result in narrowing the account information to be turned over.

What’s Next For Crypto Tax Enforcement?

The Coinbase and Kraken John Doe summons are by no means the end of the line for IRS enforcement. On April 1, 2021, the United States District Court for the District of Massachusetts granted a similar petition for a John Doe Summons to issue providing account information from Circle Internet Financial, formerly Poloniex LLC. The IRS has used John Doe summons very effectively before, most famously leading to the disclosure of tens of thousands of previously unreported foreign financial accounts and collection billions of unpaid federal income taxes. The first Swiss bank to receive a John Doe summons was UBS, but they were by no means the last. Crypto investors who have not reported all income earned should take no comfort if they haven’t yet heard from the IRS, or if they are at another exchange that isn’t named in this article. Operation Hidden Treasure isn’t aimed at identifying Coinbase account holders or Kraken account holders. It is aimed at identifying all crypto investors who are United States taxpayers, determining whether tax obligations have been met, and pursuing those who have failed to meet those obligations.

In my prior article on Operation Hidden Treasure, I urged readers who have undisclosed crypto to call a lawyer instead of confessing their “sins” to an accountant. There’s a good reason for this, and don’t just take my word for it. Tax litigator Anson Asbury explains why its best – for your and for your accountant – to take the approach of calling counsel if you are worried about past mistakes. “If you’ve made incomplete disclosures for prior years, and your accountant doesn’t know about it, she is not the person you want to tell for a number of reasons. You do not want to put her in the position where she is tempted to mislead an inquiring revenue agent about your disclosures (because she does not want to admit that the previously filed return she prepared was not accurate). That only puts both of you in jeopardy if the inconsistency is uncovered.” In addition, notes Asbury, “You also do not want to share any information with her that you do not want disclosed.” Accountants can and often are called to testify about what their clients did and did not tell them, and may not keep communications confidential in IRS civil or criminal examinations. “Finally,” says Asbury, “you want to preserve your accountant as a witness. She may be your best defense for reasonable cause. She cannot be a witness for you if she knows incriminating details that would have to be disclosed under oath.” Honestly is always the best policy when it comes to the current year’s return, but past sins should only be “confessed” to a lawyer.


from
www.forbes.com/sites/irswatch/2021/05/13/release-the-kraken-district-court-orders–all-crypto-investors-should-pay-attention/?ss=taxes&sh=6219e3487356

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IRS Sex workers taxes

Beware of ‘ghost’ preparers who don’t sign tax returns

WASHINGTON – The Internal Revenue Service reminds taxpayers to avoid “ghost” tax return preparers whose refusal to sign returns can cause a frightening array of problems. It is important to file a valid, accurate tax return because the taxpayer is ultimately responsible for it.
Ghost preparers get their scary name because they don’t sign tax returns they prepare. Like a ghost, they try to be invisible to the fact they’ve prepared the return and will print the return and get the taxpayer to sign and mail it. For e-filed returns, the ghost preparer will prepare but refuse to digitally sign it as the paid preparer.
By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a valid Preparer Tax Identification Number, or PTIN. Paid preparers must sign and include their PTIN on the return. Not signing a return is a red flag that the paid preparer may be looking to make a fast buck by promising a big refund or charging fees based on the size of the refund.
Unscrupulous tax return preparers may also:
• Require payment in cash only and not provide a receipt.
• Invent income to qualify their clients for tax credits.
• Claim fake deductions to boost the size of the refund.
• Direct refunds into their bank account, not the taxpayer’s account.
The IRS urges taxpayers to choose a tax return preparer wisely. The Choosing a Tax Professional page on IRS.gov has information about tax preparer credentials and qualifications. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help identify many preparers by type of credential or qualification.
No matter who prepares the return, the IRS urges taxpayers to review it carefully and ask questions about anything not clear before signing. Taxpayers should verify both their routing and bank account number on the completed tax return for any direct deposit refund. And taxpayers should watch out for preparers putting their bank account information onto the returns.

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IRS Sex workers taxes

Get a federal tax refund faster with direct deposit

WASHINGTON — The Internal Revenue Service today reminds taxpayers that the fastest way to get their tax refund is by filing electronically and choosing direct deposit.
Direct deposit is free, fast, simple, safe and secure. Taxpayers can even split their refund to have it deposited into one, two or three different accounts.
Eight out of 10 taxpayers get their refunds by using direct deposit. The IRS uses the same electronic transfer system to deposit tax refunds that is used by other federal agencies to deposit nearly 98% of all Social Security and Veterans Affairs benefits into millions of accounts.
Direct deposit also avoids the possibility that a refund check could be lost or stolen or returned to the IRS as undeliverable. And it saves taxpayer money. It costs more than $1 for every paper refund issued, but only a dime for each direct deposit.
Easy to use
A taxpayer simply selects direct deposit as the refund method when using tax software or working with a tax preparer, and either they or their tax preparer type in their account and routing number. It’s important to double check entries to avoid errors.
The IRS reminds taxpayers they should only deposit refunds directly into U.S. affiliated accounts that are in their name, their spouse’s name or both if it’s a joint account. Many people do not use checks and may find their routing and account numbers on their online bank account or mobile app.
Taxpayers may have a refund applied to their prepaid debit card. Many reloadable prepaid cards have account and routing numbers that could be provided to the IRS. But check with the financial institution to make sure the card can be used and verify the routing number and account number, which may be different from the card number.
There are mobile apps that may allow for direct deposit of tax refunds. They must have routing and account numbers associated with them that can be entered on a tax return. Check with the mobile app provider to confirm what numbers to use.
Have the bank routing and account number when having taxes prepared. The IRS does not have the ability to accept this information after a return is filed.
Don’t have a bank account?
Visit the FDIC website for information on where to find a bank that can open an account online and how to choose the right account. Veterans can use the Veterans Benefits Banking Program (VBBP) for access to financial services at participating banks. Tax return preparers may also offer electronic payment options.
Split refunds
By using direct deposit, a taxpayer can split their refund into up to three financial accounts, including a bank or Individual Retirement Account. Part of the refund can even be used to purchase up to $5,000 in U.S. Series I Savings Bonds.
A taxpayer can split their refund by using tax software or by using Form 8888, Allocation of Refund (including Savings Bond Purchases), if they file a paper return. Some people use split refunds as a convenient option for managing their money, sending some of their refund to an account for immediate use and some for future savings.
No more than three electronic tax refunds can be deposited into a single financial account or prepaid debit card. Taxpayers who exceed the limit will receive an IRS notice and a paper refund will be issued for the refunds exceeding that limit.
Combining Electronic Filing plus direct deposit yields fastest refunds
The safest and most accurate way to file a tax return is to file electronically. Many people may be eligible to file electronically for Free. Most refunds are issued in less than 21 days, but some returns may take longer. Taxpayers can track their refund using “Where’s My Refund?” on IRS.gov or by downloading the IRS2Go mobile app.
“Where’s My Refund?” is updated once daily, usually overnight, so there’s no reason to check more than once per day or call the IRS to get information about a refund. Taxpayers can check “Where’s My Refund?” within 24 hours after the IRS has received their e-filed return or four weeks after mailing a paper return. “Where’s My Refund?” has a tracker that displays progress through three stages: (1) Return Received, (2) Refund Approved, and (3) Refund Sent.

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Get Ready for Taxes: Steps to take now to make tax filing easier in 2021

IRS
WASHINGTON – The Internal Revenue Service today encouraged taxpayers to take necessary actions this fall to help file federal tax returns timely and accurately in 2021.
This is the second in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A special page, updated and available on IRS.gov, outlines steps taxpayers can take now to make tax filing easier in 2021.
2020 has been a busy year, with a lot of changes. To make sure taxpayers don’t miss out on tax benefits or make mistakes, they can take a few simple steps now to make filing their taxes easier in 2021.
An important first step to getting taxes ready is to gather all tax records. Having records organized makes preparing a tax return easier. It may also help discover potentially overlooked deductions or credits.
• Most income is taxable, so taxpayers should gather income documents such as Forms W-2 from employers, Forms 1099 from banks and other payers, and records of virtual currencies or other income. This also includes, unemployment income, refund interest and income from the gig economy.
• Beginning in 2020, individuals may receive Form 1099-NEC, Nonemployee Compensation, rather than Form 1099-MISC, Miscellaneous Income, if they performed certain services for and received payments from a business. Please refer to the Instructions for Form 1099-MISC and Form 1099-NEC to ensure clients are filing the appropriate form and are aware of this change.
• Taxpayers may also need Notice 1444, Economic Impact Payment, which shows how much of a payment they received in 2020. This amount is needed to calculate any Recovery Rebate Credit they may be eligible for when they file their federal income tax return in 2021. People who didn’t receive an Economic Impact Payment in 2020 may qualify for the Recovery Rebate Credit when they file their 2020 taxes in 2021.
• To see information from the most recently filed tax return, recent payments and more taxpayers can sign up to view account information online.
• Taxpayers should notify the IRS of address changes and notify the Social Security Administration of a legal name change to avoid delays in tax return processing.
Taxpayers with an Individual Tax Identification Number (ITIN) should ensure it hasn’t expired before filing a tax return in 2021. For example, ITINs not used on a federal tax return at least once in the last three years will expire on Dec. 31, 2020. If the ITIN has expired, IRS recommends taxpayers submit Form W-7, Application for IRS Individual Taxpayer Identification Number, now to renew an ITIN. Taxpayers who fail to renew ITINs before filing a tax return next year could face a delayed refund and may be ineligible for certain tax credits.
Time is running out to use the Tax Withholding Estimator, a tool on IRS.gov designed to help determine the right amount of tax to have withheld from paychecks. Taxpayers can use the Tax Withholding Estimator to help determine if adjustments to withholding are necessary. Withholding changes can be made by submitting a new Form W-4 to the taxpayer’s employer.
Taxpayers receiving substantial amounts of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income, should make quarterly estimated tax payments. The last payment for 2020 is due on Jan. 15, 2021. Payment options can be found at IRS.gov/payments.

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IRS Sex workers taxes

IRS to resume sending balance-due notices despite pandemic

IRSThe Internal Revenue Service said Friday it would restart issuing its 500 series of balance-due notices to taxpayers later this month after they were paused on May 9 due to the COVID-19 pandemic.

While the IRS continued to issue most of its notices, the 500 series was temporarily suspended because of a backlog of mail that built up at the IRS while many employees were away from agency facilities due to COVID-19. The IRS came under fire earlier this year for issuing balance due notices with the incorrect dates to taxpayers during the pandemic and agreed to stop sending the notices until it caught up with its backlog of unopened mail.

If you get a letter from IRS that states you owe money we can help. We do a lot or IRS case resolution.  Contact us if you receive an IRS letter. info @ sexworkertaxes.com

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IRS Sex workers taxes

IRS extends Economic Impact Payment registration deadline for non-filers to Nov. 21

The deadline to register for an Economic Impact Payment using the Non-Filers tool is extended to November 21, 2020.

The IRS urges people who don’t typically file a tax return – and haven’t received an Economic Impact Payment – to register as quickly as possible using the Non-Filers: Enter Info Here tool on IRS.gov. The tool will not be available after November 21.
This additional time is solely for those who haven’t registered or received their EIP and don’t normally file a tax return. For taxpayers who requested an extension of time to file their 2019 tax return, that deadline is Thursday, October 15.
Most eligible U.S. taxpayers automatically received their Economic Impact Payment. Others who don’t have a filing obligation need to use the Non-Filers tool to register with the IRS to get up to $1,200. Typically, this includes people who receive little or no income.
The Non-Filers tool is secure. It is designed for people with incomes typically below $24,400 for married couples, and $12,200 for singles who could not be claimed as a dependent by someone else. This includes couples and individuals who are experiencing homelessness.
Anyone using the Non-Filers tool can speed up the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.
Beginning two weeks after they register, people can track the status of their payment using the Get My Payment tool, available only on IRS.gov.

 

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IRS Sex workers taxes

Here’s What Happens If You Don’t Do Your Taxes

You, yes you, can do your taxes this year. Many of you are done, most of you haven’t started, and a few of you are freaking out. Some of you are thinking: what if I just don’t file? What will happen if I don’t pay? What if I didn’t file last year or the year before that? What will they do to me and will I be in prison with Wesley Snipes?

I have some answers to those questions! You should note that I am not a tax professional, that this is definitely not professional advice and that every situation is unique. Also you should be doing your taxes right now probably, not reading the Internet. But here’s some experience, offered person-to-person, that is not professional counsel.

It is better to do a cruddy job and file than to not file.
When I say “cruddy job,” I don’t mean “making wild guesstimations” or being dishonest. I mean: If you can’t nail some stuff down, forget about it and move on. For instance: Do you not have receipts for some expenses? Big deal: cut them out and forget about it. (These small expense-deductions don’t generally have too much effect on your tax burden anyway.) Err on the side of “hurting” yourself and just plow through it. It’s just not worth making yourself crazy over fifteen bucks!

You can fix your return!
It is easy to amend a return. It’s also easy for the IRS to amend your return: “You do not need to file an amended return due to math errors. The IRS will automatically make that correction.” Intense, right?

It is better to file and not pay than to not file and not pay.
What happened, you spend all your money? That’s okay, pal! Do your taxes, send ’em in, if you have absolutely no money. You will incur not-totally-crazy penalties over time due to not paying, and they will want to talk to you about when you can pay. (Yup, it’s always the broke people that have to pay more in this world.) That’s not ideal, sure! But it’s a lot more ideal than not having filed.

Okay, but should I be scared of the IRS?
The IRS only wants to hear from you. The answer, surprisingly, is a very firm “no”! Not at all! The IRS has some of the nicest, most understanding people I have ever spoken with in my life. True fact.

There’s a lot of TV- and movie-propagated terror about the IRS. (As well, the whole idea of the government and money is anxiety-producing on its own, sure.) And the truth is… well, they kind of used to be a little mean? But that’s actually ancient history. The people at the IRS are some of the funnest people ever! I have had long hilarious conversations with them on the phone. (For real, there are some hilarious ladies down in Atlanta.) IRS employees are like most civil servants; they deal with confused, freaked out and sometimes very dingbatty people (not you, friend!) every day — the kind of people who do not follow directions, particularly. So if you are not a jerk, they will be delighted to speak to you, at length. They will sometimes be like, “Girl, how did you get into this trouble?” and you’ll be like “Oh, haha, I’m a mess! Mistakes happen!” and they’ll be like, “I hear you! I get it!” Do not be afraid. What they want is to hear from you.

Should I be scared of my state tax department?
Actually… well, maybe just a little. The same rules apply as above — they do want to hear from you! — but, for instance, the New York State Department of Taxation and Finance seems to be a little cranky. They want their money, they want it now, and if you don’t give it to them, they will take it. I’m sure there are some wonderful, caring people working in all of America’s fine state tax departments!

What happens if you don’t file?
Have I mentioned that the IRS only wants to hear from you?

No really, what happens if you don’t file and don’t pay?
Great news! Eventually the IRS will do your taxes for you. This is called a substitute return. Doesn’t that sound nice? Well it’s not particularly. For an agency that’s devoted to taxes, they don’t do a very good job at it. (Kidding.) So the good news is that your taxes will be done! The bad news is that they will take your reported income, slot it into the appropriate tax bracket, and say you owe that percentage. So if you made $85,000, bam, you owe 28%.

Also? Lots of people can’t deal with taxes when they’re even going to get money back! People are funny. But you should know that your refund disappears in three years if you don’t file.

What happens if, like, I ignore the IRS?
Well, you’ll get a ton of mail. And the problem with being “in trouble” is that your sense of being in trouble fades really fast. That’s how people are built. Most people pay taxes because they’re scared of the consequences. So, you don’t file one year, and then… nothing that terrible happens! So you’re off to the races. And then you get a scary piece of mail from the IRS, and you ignore it, and… nothing terrible happens again! It’s very easy for the human mind to acclimate to this.

And then, they will make it so that you can’t ignore them. (For instance, your debit card will stop working! Heh.) You should head that off at the pass. The moral being: even if you aren’t scared of the consequences now, you will be later.

Ugh, they sent a letter to everyone I’ve ever worked for! How humiliating!
Nah, it’s not. Years ago, the IRS sent out a letter to people who’d paid me money, informing them they had an interest in having that money for themselves. And half the people who got these letters — caring, decent, professional, adult-type people! — were like “Ha, I got one of these letters last year!” It was a moment of bonding. To be fair, one person was a little judgmental, but you are by no means alone in these issues.

So how do I work out paying if I haven’t paid?
You know how GE and Bank of America don’t pay any taxes? That happens because they’re well-advised. You too should be well-advised. Down the road, if you end up in debt with the IRS, you will likely have a couple of options — usually Offer in Compromise or Payment Plan. These are actually not terribly straightforward. For instance, you can work out a payment plan with the IRS, after filling out quite a lot of paperwork, and having your financial life pretty well-surveilled by them, but the IRS is actually required to ensure that you have enough money and income to meet the payment plan. (They can’t agree to a payment plan that’s onerous.) But that doesn’t mean that, even if you are on an installment plan, that penalties don’t continue to accrue! So, many people find that they’re often better off getting a bank loan. And Offer in Compromise is extremely complicated. With those, for instance, you cannot miss a yearly tax payment for at least the next five years, or the deal is off. So you are going to need to become an expert — but more importantly, you’re also going to need to consult with a real expert.

Ugh, I don’t know what to do!
Guess what? The IRS only wants to hear from you. Also? These things are never as bad as you think. Now go off to your quiet place and do your taxes. I can promise you’ll be happy you did.

HELP I’M PANICKING!
Lots of online tax products are free to use to file an extension. If you can’t do ANYTHING else at all, do that.

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IRS Sex workers taxes

Five Reasons Sex Workers File Their Damn Taxes

1) Tax returns are the only proof of income you have if you’re self-employed and paid mostly, if not entirely, in cash.

2) It’s far better for the IRS to have your numbers to start with than to let them come up with their own.

3) If you get caught after not paying taxes for a number of years and get hit with a five-figure bill, it really sucks.

4) You become another person contradicting the stereotype of sex workers as tax cheats who don’t contribute to society.

5) It makes you (even more) morally superior to GE.

Things you need to file if you are an independent contractor stripper/model/performer/camgirl, an escort, sensual touch provider, etc:

Form 1040
Schedule C for income from a business (you are a business)
Form 8829 for home office deduction (you have a computer in your home where you’re doing business, yes?)
Your receipts for work-related supplies, travel, and other expenses
Records of your income

Even if you lack accurate records, give it your best shot and file. Even if you can’t pay right now, file. Even if what you do is illegal, file (you don’t have to write down what you do. We are all “entertainers”). Read this piece over at the Awl for some good reasons why you should file no matter what. It’s so, so much better to have YOUR realistic numbers than to have the IRS say, “Hey, we have this 1099 from your club, where you sold $1500 in VIP rooms, so we’re assuming that was a normal night for you, so we’re calculating your tax debt based on that,” or “Well, we saw on this 20/20 special about escorts that $2000/hour is a rate people pay in New York, so let’s start there.”

I don’t care if you’re gonna fudge it! Don’t tell me about it. Don’t tell anyone about it, for that matter. I’m not telling you to file because I think we owe it to the country or because I’m a bleeding-heart liberal or because I think the Tea Party is supremely misguided because they aren’t storming the gates of GE and Bank of America to demand they bear their burden of the tax load. I’m telling you to do this because it COVERS YOUR PRETTY PROFESSIONALLY SEXY ASS. Having personally fucked up with taxes before and knowing several dancers and escorts who’ve been in deep shit with the revenuers, I speak from experience when I say it’s to your advantage to stay on top of your taxes.