I was right about the Vagina Tax!

I have stood by the notion that the reason prostitution is illegal is because the feds haven't found a way to tax the vagina yet. Here's the proof:

*Cue the theme music from The Dukes of Hazzard*

Here’s a tax tip you don’t hear often: Don’t forget to report illegal income from prostitution and other nefarious activities.

Prosecutor Charles Escher said in court that Jones and his business, Amazing Promotions Group Inc., collected the cash from the safes at the six houses he called Escape Lounges. Escher said the prostitutes put Jones’ cut of their earnings in envelopes and put them in those safes.

But unlike many who run afoul of the Internal Revenue Service, Jones didn’t get into trouble by keeping bad records.

The government knew about his ill-gotten income because a Houston police raid on the Escape Lounges in 2004 netted financial spread sheets. Escher said details included records that Jones claimed an income of $140,000 in 2003 but actually had an income of about $667,000.
Shebay would not verify that his client ever ran a prostitution ring and said he was not convicted of related activity.

IRS spokeswoman Robin Sabin of Houston suggests Schedule C for the small-business owner and the 1040 line “other income” for the free-lancer. She said this stuff just doesn’t show up on a W2 form.

“You should report your ill-gotten gains just like you report any legal income,” said Sabin.

She said a business name would be fine and that taxpayers needn’t spell out their illegal activity.


Only in Texas, folks.