In edition to Big Daddy Kane's list of the perils of pimpin' you can add paperwork and payroll compliance.
This should serve as a reminder to all associated with the world's oldest profession that the IRS wants its payroll and income taxes to be paid. In fact, the Internal Revenue Code explicitly states all income from illegal activity is taxable. In the case of prostitution it most probably belongs on Schedule C although it is less clear what the line for 'Principal business or profession' should contain.
This should serve as a reminder to all associated with the world's oldest profession that the IRS wants its payroll and income taxes to be paid. In fact, the Internal Revenue Code explicitly states all income from illegal activity is taxable. In the case of prostitution it most probably belongs on Schedule C although it is less clear what the line for 'Principal business or profession' should contain.
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