photo: Lucius Beebe Memorial Library
Sex workers, outside of certain counties in Nevada, find it hard to file state and federal income taxes, as they do not have a legal source of income. There are strong incentives for Utah sex workers to file yearly tax forms. First, Utah state and federal penalties for tax evasion are more severe than those for prostitution. Second, a person needs a credit history to obtain a credit card, a loan, and certain types of insurance. In order to obtain a credit history a viable source of income is needed, something that requires yearly tax documents. When a Utah sex worker successfully files taxes there are deductions made for the social security system, allowing the person to obtain benefits from it in the future. The biggest hurdle for a Utah sex worker on tax forms is finding a profession to claim. Some possibilities include the code 711510 for independent artists, writers and performers, the code for other amusement and recreation services, or other personal services. If a sex worker in Utah holds a degree or license they may be using it to file under related professions like therapy or nursing.
It could potentially be argued that the 5th Amendment permits a prostitute to leave the profession line on tax forms blank, or provide a related answer, claiming a privilege against self-incrimination. Helpful to Utah sex workers is the fact that the IRS cannot legally disclose tax returns to law enforcement unless the individual is already under investigation. However, the opposite is not true; police can inform the IRS when they are accusing a Utah sex worker or other criminal who may have violated tax laws.
(IRS Circular 230 Legend: Any advice contained herein was not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Unless otherwise specifically indicated above, you should assume that any statement in this ‘blog’ relating to any U.S. federal, state, or local tax matter was written in connection with the promotion or marketing by other parties of the transaction(s) or matter(s) addressed in this ‘blog’. Each taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.)
