My tax horror story in the making

[mrzeek]

So basically I am a successful male cam model on Chaturbate, and out being an 18 year old (when I started) I didn't want my parents to know about anything, so I made no efforts to claim this new income source. Two years have gone by now since I started, I haven't claimed anything still, I talked to a big cammer last night and he told me I will probably end up facing $15-$20k in fees and accumulated interest on my unclaimed income.


So as you could imagine, I am freaking out. I really need to know what steps to take, I want to correct my wrongs without getting an audit (which I didn't even know existed until last night) because I am sure that will mess up my life ever so slightly. Is there any forms I can submit, am I screwed, what would be a good start for collecting my income totals (Payoneer and PayPal transaction invoices?)

Help

 

[Violet Dawn]

Camming is a job, it requires taxes to be paid. You cannot get away with avoiding taxes. Especially when a website specifically tells you that they are reporting your income to the IRS. So 2 years of unclaimed, but most likely reported income is going to rake up some fees. I cannot tell you how much those fees will be because I'm not a tax person and I'm pretty inexperienced myself with taxes, but what I can tell you is never avoid your taxes. Under any circumstances. I get that you don't want your parents to find out, but if it meant avoiding taxes you should have never cammed to begin with.

Now, what to do. Yes, find all your sources of income. This includes Chaturbate, Paypal, Clips4Sale if you have that. Those sorts of things. Payoneer was most likely a payout method from a specific website so you probably don't need to include that, I mean unless you received payments there from clients directly, though I'm not sure if you can do that. Get all this income and I think it's best to divide it into each year. Like 2014 you made xxx amount of money, 2015 you made xxxx amount, then while you're at it figure out your income for 2016 to be ahead of the game. Then if I were you I would speak with a sex work friendly CPA. Expect fees, expect to pay your CPA for their service. I don't think you will have that much in fees, but I don't know how much you earn.

Remember, all of these websites report your earnings. So the IRS knows when you owe money. Sometimes they won't tell you for a few years so they can get more money through fees. And if worse comes to worse you can receive prison time.

 

[SaffronBurke]

There's a cpa who many models on this forum use, I believe his Twitter is @taxxxguy. He's probably your best bet to answer your questions.

 

[schlmoe]

1. A CPA told me once "Filing and not paying is a fine (penalties & interest). Not filing can be construed as TAX EVASION, a FELONY." So, seek professional help without delay. If you go to the IRS before they come to you, you are more likely to face leniency and be able to get a favorable payment plan.

2. If you are living at home, and your parents claim you as a dependent, you may have to come clean with them. The CPA/Tax Pro can advise you there.

3. Do not put this off.

4. Good luck.

 

[mrzeek]

Thank you all so much, this is a great forum.

I would appreciate if this could be deleted for my own safety, I will come back for further questions if need be, you were all a very great help!

I'm expecting a few thousand in fees, I really hope that's all it is!

 

[Mira_xo]

Message AmberCutie that you would like this thread to be deleted.

Also before it does--don't try to do things yourself. YOU NEED AN ACCOUNTANT YESTERDAY.

 

[dirtysexymoney]

File right away! Even if you can't pay now, get it filed and make payment arrangements.
Keep in mind, as a 1099 contractor, even if you haven't setup a separate tax entity (which you may want to do, for tax advantages and/or asset protection if you are doing well) that you a business owner and at the very least will have a schedule C on your tax return.
As such, you can deduct any legitimate expenses incurred in running/operating your business (new webcams, computers, internet service, costumes, toys/props for your shows, professional services (a good tax person), mileage/transportation expenses for your business, travel costs/hotels for conferences, conventions, and other business travel, and likely your cell phone and home office deductions and more). A good tax person should ask you and help you find these deductions and not just take your reported income/expenses.
Find someone who understands small business, and the entertainment business specifically.
I'm new to the forums, and don't want to break any rules regarding posting contact information, or soliciting business - but I I run a fair sized small tax practice that focuses on small businesses and entertainers (and I also manage a few cam models which is why I joined here), I can help you and work with you anywhere in the USA. I'll try to find out more about the rules, and post my info here if I can. If not, and you'd like assistance, just post on my profile.
Thanks and good luck. Again, in summary, file right away! (even if its wrong, and you need to file an amended to get all your expenses included get something filed ASAP)

 

[Cynthiamichellexo]

If you haven't already, get up and file asap. taxguy is also very good at what he does!

 

[Kitcatt]

ugh, have to ask, did your parents claim you? Because this is all going to fall in there lap

 

[HiGirlsRHot]

ugh, have to ask, did your parents claim you? Because this is all going to fall in there lap

Yes, that's potentially a huge issue. for both you and you parents. If you were living at home they probably claimed you as a deduction, which they may or may not have been legally entitled to do.
Taxxguy probably can give you good advice, but you may have to tell them what's going on in order to avoid getting them in trouble.

 

[Nikola Tesla]

They should teach adult things in school. Never heard of auditing of taxes until yesterday? Death and taxes. Death and taxes. kids these days. <smh>

 

[AerynShade]

They should teach adult things in school. Never heard of auditing of taxes until yesterday? Death and taxes. Death and taxes. kids these days. <smh>

They do. One of my areas of focus for my teaching degree was Personal Finance where we teach an entire unit on filing taxes.

 

[Sevrin]

Death and taxes. Death and taxes.

Can't even twerk to that.

 

[ExcellaExe]

I was taught about taxes. Then again, that was ten years ago... I'm getting so old...

 

[Bobbie Madison]

You could show the things you invested in like the laptop, webcam, lube, all the sex toys and if you ordered them online, the receipt is still in your email, even sexy lingerie, shit, I would even claim baby oil and the chocolate frosting I rub on my body for shows, just every.single.thing. And if you've networked and paid your own flight and hotel for an event, that too.

 

[JoleneBrody]

Just a reminder that this thread was posted in August, and last updated by OP in August as well.

 

[fandango]

I was taught about taxes. Then again, that was ten years ago... I'm getting so old...

I wish my school did that as it would have been a useful subject that I could have actually used in life. Instead my school made everyone spend 3 years learning about interpretive dance before we could drop it.

If I ever went self employed or had to do my own taxes I wouldn't have a clue where to start. Ask me to dance like a tree though and I'm golden.

 

[ExcellaExe]

I wish my school did that as it would have been a useful subject that I could have actually used in life. Instead my school made everyone spend 3 years learning about interpretive dance before we could drop it.

If I ever went self employed or had to do my own taxes I wouldn't have a clue where to start. Ask me to dance like a tree though and I'm golden.

Let me know if you ever want to do a duet. I still got some pointe shoes somewhere