Fort Lauderdale Adult Industry Tax Lawyer Providing Legal Services for Adult Industry Workers in Florida

Like most tourist destinations, a large number of individuals and businesses in Florida cater to the adult industry and adult entertainment and are expected to pay taxes like all other types of businesses. However, it may not always be easy to understand exactly what type of taxes you need to be paying, or even where to begin. Our firm assists adult industry businesses and individual workers to remain tax compliant and resolve their issues with the IRS.

How Do Taxes Work for the Adult Industry in Florida?

The kind of taxes those in the adult industry may be subject to may vary according to the location and nature of their business, as well as their employment status. For example, owners of clubs that offer adult entertainment and sell food and beverages will likely need to comply with Florida sales tax rules as well as payroll taxes and tip reporting requirements for tipped employees. However, it is common for most professionals in the adult industry to work as independent contractors, which means they likely receive 1099s from the customers or venues they serve and must file and pay for their own taxes and keep track of their business-related expenses.

How Should an Adult Industry Worker File Taxes in Florida?

The manner in which an adult industry worker should file taxes varies depending on whether they are an employee receiving a W-2 from their employer or if they serve multiple clients as an independent contractor. W-2 employees can prepare a tax return like any other worker, being mindful of adding any tips they may have received and any qualifying expenses and paying any taxes they may owe.

Independent contractors have to dedicate a little more time and effort to getting organized for tax time. Because an independent contractor is not an employee, he or she is fully responsible for reporting their income and expenses and paying the appropriate taxes. This means keeping track of all 1099s they may receive from clients, tracking expenses that could be classified as business expenses, and being ready to pay taxes when the time comes. It may be wise for an independent contractor to set some money aside for taxes, as any payment they receive from clients is taxable but it is their responsibility to report and pay taxes on business income.

What Happens if an Independent Contractor Does Not File Their Taxes?

It may come as a surprise for some adult industry workers that their status as independent contractors means a lot more work than they may expect when it comes to preparing and filing their taxes. For that reason, it is not uncommon for many to simply lose track of deadlines and fail to file their taxes or make simple yet costly mistakes such as forgetting to include all of their 1099s and underreporting income to the IRS.

Unfortunately, the IRS makes no distinction for those working in the adult industry and expects all income to be reported and applicable taxes to be paid. If you did not file your taxes and did not have a valid extension in place, the IRS may charge significant penalties and interest on top of whatever tax amount you owe, and the longer you wait, the more you will likely need to pay.

A penalty called Failure to File can be assessed for those who did not file a tax return, and it applies to independent contractors as well. The penalty is 5% every month based on the amount of taxes you owe up to a maximum of 25%. If you have unpaid taxes, another penalty called Failure to Pay may be applied, meaning you will need to pay 0.5% of your total unpaid amount for every month your tax bill remains unpaid. If you haven’t filed and haven’t paid your taxes, you may be required to pay both types of penalties, in addition to significant interest added to your tax balance.

The IRS is not shy about collecting money owed to them, and those who have tax debt can expect the IRS to be watching them closely. If the individual has been contacted by the IRS concerning past-due taxes and chose to ignore it, the IRS can get more and more aggressive in their collection actions, and may go as far as garnishing your paychecks or taking a percentage of your business income. In other words, if you are an adult industry independent contractor, you will want to try your best to remain tax compliant, and hiring a professional such as a bookkeeper and a tax attorney may make the entire process smoother for you.

How Can a Florida Adult Industry Tax Attorney Help?

Whether you are a business owner catering to the adult industry in Fort Lauderdale or an independent contractor providing services to clients in the area, taking the right steps to fulfill your tax obligations and avoid getting into trouble with the IRS is extremely important. A Florida adult industry tax attorney may be instrumental in helping you understand your tax obligations and assisting you with making the right plans and implementing the right systems to satisfy the IRS requirements without putting your financial well-being in jeopardy.

At the Law Office of Ray Haselman, adult industry professionals and business owners can receive knowledgeable, professional tax advice from a tax attorney who focuses solely on tax issues. Attorney Ray Haselman also helps clients in the Fort Lauderdale area who have tax problems and need to find a favorable solution with the IRS. If you have questions or need tax-related help, contact the Law Office of Ray Haselman at 786-522-0410.