It’s something about prostitution that somehow leads to tax evasion. While perusing my email this evening in Connecticut I noticed yet another guilty plea by a man who charged personal expenses on his corporate tax return. Somehow the IRS did not find as humorous as I do the idea of deducting visits to prostitutes as “necessary and ordinary” corporate business deductions.
John Kelso of Monroe, North Carolina pleaded guilty to tax fraud. He agreed to make restitution of $18,000 and faces up to three years at ClubFed and a fine of $250,000.
I have clients that would wish the rules worked to this so they could take the deduction. I even have one that ask me every year, “What about. . .? I kept track of how much I spent.” Amazing.