Legitimate Question

[Jock123]

SO I have this client whom flies to me from his hometown in Washington. Recently, Specifically the past few months we've seen each other quite often.

 

Here's the thing...He doesnt like to travel with his Bank Cards, Thus he prefers he Western Union me my fee prior to us getting together.

 

My question is when does this become an Issue as far as Taxes go!? Is there a red flag I should know about by doing this!? He spends an entire weekend with me so It's gotten to the point I am concerned. I just want to make sure I'm living on the straight and narrow and stay In good graces. As a now InFamous Internet personality once said..."Aint nobody got time for that!"

 

 

Also whats the deal with Paypal policies!? I hope I dont sound Naive...but I really am to all of this.

 

[instudiocity]

Well, I can see why he wouldn't want to travel with his bank cards, IF he leaves his cellphone at home, too. The only thing that puts him in that city is an airline ticket if he's all cash all the time.

 

As for you, you might want to check Western Union's Terms and Conditions. You might trip over some federal banking requirements there, too. You didn't say how you collect from the WU - are you picking up cash at the Wal-Mart or electronically putting the money into a bank account? Are you depositing cash into a bank account? All of these methods can be tracked by the fibbies on those "No Visible Means Of Support" folks who pay rent and drive nice cars without an income.

 

PayPal is not a place for escorts - transfers to friends are OK, but the company set up to transfer money for eBay and the like. You'll probably get their attention more thru large deposits, frequent deposits from 'friends' as fast as if you were charging for a service and PP was making their %. Several working gentlemen have posted here about locked accounts (six months!?!?) and large sums on hold.

[+ Topseed]

Would Venmo be a better option?

[+ nycman]

Cash is King!

[LivingnLA]

Source: https://www.irs.gov/irm/part4/irm_04-026-009-cont01.html

 

4.26.9.7.1.1 (06-01-2006)

Reporting Requirements

1. FinCEN Form 104(CTR) must be filed for all currency transactions of more than $10,000 in one business day. (31 CFR 103.22(b)(1)) Currency received from the sender through a money transmitter or paid to the receiver through a money transmitter can trigger the reporting requirement.
    
    
   
2. Multiple currency transactions must be aggregated and a CTR is required if the business has knowledge that the multiple transactions are by or on behalf of any one person and result in either cash in or cash out totaling more than $10,000 in one business day. (31 CFR 103.22©(2))
    
    
   
3. The CTR must be filed within 15 calendar days following the day the reportable transaction occurs. (31 CFR 103.27(a)(1))
    
    
   
4. Treasury Department Form TD 90-22.56, SAR-MSB, is required to be made by the money services business if they suspect or have reason to suspect suspicious activities have occurred (31 CFR 103.20(a)).
    
    
   
5. A SAR-MSB must be filed for suspicious transactions of at least $2,000 in funds or other assets conducted or attempted by, at, or through the money services business (31 CFR 103.20(a)(2)).
    
    
   
6. An MSB is required to file the SAR-MSB with FinCEN, through DCC, no later than 30 calendar days after the date of detection (31 CFR 103.20(b)(3)).
    
    
   
7. An MSB is prohibited from notifying any person involved in the transaction that a SAR has been filed (31 CFR 103.20(d)).
    
   

[LivingnLA]

In 4.26.9.7...

 

Item #11 will help you figure out your exposure, because Western Union doesn't verify ID until certain thresholds are reached...

 

Identification and verification of identification on certain thresholds of transactions are governed by 31 CFR 103.22, 31 CFR 103.28, and 31 CFR 103.33(f)(2). Below the thresholds that trigger identification and verifications requirements, identification may not be required by the companies for either the person sending the money or the person receiving the money. There is a " test question" on some sending forms that waives identification on the recipient side of the transaction if the recipient knows the correct answer

These are all sections in Chapter 3 of Title 20. The general threshold is $10k on any given day.

 

https://www.law.cornell.edu/cfr/text/31/103.22

https://www.law.cornell.edu/cfr/text/31/103.28

https://www.law.cornell.edu/cfr/text/31/103.33

[BabyBoomer]

It's gotten to the point I am concerned.

 

Take the plea deal.

 

~ Boomer ~

[Jock123]

Take the plea deal.

 

~ Boomer ~

 

 

Oh god. Dont scare me like that! Haha like I said I'm trying to stay on the straight and narrow!

[Jock123]

Sidenote; I really wish they would just make it all Legal and Legitimize it.

[+ Funguy]

Oh god. Dont scare me like that! Haha like I said I'm trying to stay on the straight and narrow!

 

Don't you mean the "gay and narrow"?

[gezellig4u]

Don't you mean the "gay and narrow"?

Mmmmmm.... gay and narrow....

[instudiocity]

Sidenote; I really wish they would just make it all Legal and Legitimize it.

No you don't. Government would not only legalize it, but license it, tax it and force you to buy employee benefits like health insurance, business permits, mandatory testing/inspections, all while becoming passive partners in your business to the tune of 30-40% of gross revenue with no downside if you break your tool(s).

[instudiocity]

Mmmmmm.... gay and narrow....

I prefer Sweet & Tight...

[gezellig4u]

I prefer Sweet & Tight...

Close enough

[gezellig4u]

No you don't. Government would not only legalize it, but license it, tax it and force you to buy employee benefits like health insurance, business permits, mandatory testing/inspections, all wile becoming passive partners in your business to the tune of 30-40% of gross revenue with no downside if you break your tool(s).

And it's just like my Nanna Rosanna Danna used to say... "Either way, in the end you get screwed!"

[LivingnLA]

Oh god. Dont scare me like that! Haha like I said I'm trying to stay on the straight and narrow!

 

Thanks to the drug war, it's unbelievably difficult to "stay on the straight and narrow" even for people in fully legal businesses. Also keep in mind that it's illegal to structure financial transactions in such a way so as to avoid these reporting requirements. That law and the associated regulations are trickier and more undefined as far as what sort of transactions cause flags to be generated, but something obvious like X number of repetitive payments over Y days that exceeds a total over $10k would be suspicious if Y is 7 days or less. That's all hypothetical and in no way serves as advice, a suggestion, or counsel. It's merely illustrative of the potential structure such transaction monitoring systems might take if they existed.

 

Lastly, keep in mind our government tends to ignore small players until they become big, politically dangerous, or personally offend a powerful person. Since Western Union keeps transaction records for a rather long time, it might be wise to plan ahead and make sure any transactions associated with you don't reveal activity the government might define illegal and wish to prosecute retroactively. For example, crimal tax fraud doesn't have a statue of limitations.

[instudiocity]

And it's just like my Nanna Rosanna Danna used to say... "Either way, in the end you get screwed!"

Until it's legalized you're only guaranteed one screwing per fee. After legalization, IRS, State, County, City all get a piece, too.

[gezellig4u]

Until it's legalized you're only guaranteed one screwing per fee. After legalization, IRS, State, County, City all get a piece, too.

:D:D:D:D:D:D:D

[Kevin Slater]

Sidenote; I really wish they would just make it all Legal and Legitimize it.

 

There's nothing about it being illegal that prevents you from being able to pay taxes on it. If you're truly trying to be on the straight and narrow, accept money via Western Union, check, or any other means and pay taxes on it. Problem solved.

 

Kevin Slater

[LivingnLA]

There's nothing about it being illegal that prevents you from being able to pay taxes on it. If you're truly trying to be on the straight and narrow, accept money via Western Union, check, or any other means and pay taxes on it. Problem solved.

 

Kevin Slater

 

Well said. That would handily solve the tax problem and as the mob knows, the IRS is very aggressively persistent.

[instudiocity]

There's nothing about it being illegal that prevents you from being able to pay taxes on it. If you're truly trying to be on the straight and narrow, accept money via Western Union, check, or any other means and pay taxes on it. Problem solved.

 

Kevin Slater

YUP! The IRS doesn't care how you derive said taxable income, only that you share it with them and your state income tax authority... Now the locals don't want you trashing up the neighborhood.

[gezellig4u]

Thanks to the drug war, it's unbelievably difficult to "stay on the straight and narrow" even for people in fully legal businesses. Also keep in mind that it's illegal to structure financial transactions in such a way so as to avoid these reporting requirements. That law and the associated regulations are trickier and more undefined as far as what sort of transactions cause flags to be generated, but something obviously like X number of repetitive payments over Y days that exceeds a total over $10k would be suspicious if Y is 7 days or less. That's all hypothetical and in no way serves as advice, a suggestion, or counsel. It's merely illustrative of the potential structure such transaction monitoring systems might take if they existed.

 

Lastly, keep in mind our government tends to ignore small players until they become big, politically dangerous, or personally offend a powerful person. Since Western Union keeps transaction records for a rather long time, it might be wise to plan ahead and make sure any transactions associated with you don't reveal activity the government might define illegal and wish to prosecute retroactively. For example, crimal tax fraud doesn't have a statue of limitations.

Exactly! Al Capone did not serve time for his killings, extortion, etc. He got sent up for not paying taxes on his less-than-legal income. In, the U.S., even non-legal income is taxable. I agree that making escorting legal would ultimately be better. Yes, there would be taxes. So what? My entirely legal income is heavily taxed, but I don't have issues with that. If one wants to avoid all taxes, one could move to Somalia. Of course, one would have to pay off whatever drug lord was in power to stay alive, but no taxes! Oh, wait... that is a form of taxation... just with no regulation at all. Good luck with that.

[LivingnLA]

...If one wants to avoid all taxes, one could move to Somalia. Of course, one would have to pay off whatever drug lord was in power to stay alive, but no taxes! Oh, wait... that is a form of taxation... just with no regulation at all. Good luck with that....

 

Uh, the USA requires citizens to report and pay taxes on incomes regardless of where it's earned or stored unless certain specific conditions are met. That doesn't stop many people from uses shells, trusts, and other financial instruments to avoid taxes. I'm merely stating the current legal climate.

 

https://www.irs.gov/businesses/income-from-abroad-is-taxable

[+ Funguy]

Well said. That would handily solve the tax problem and as the mob knows, the IRS is very aggressively persistent.

 

Think Al Capone.....tax evasion (and syphilis)

[+ sniper]

You really should report it and pay taxes, because then you are building Social Security credits, which isn't just for old age, but also provides disability insurance. How many times have we seen Gofundmes for escorts/bodybuilders who got sick or injured and had zero coverage because they never reported anything?