HOOKERS TIGERS AND 1099's

With a title like that how can you not read this entry.

I’ve tried to avoid blogging the Tiger Woods scandal because, except for the divorce issues it has little to do with taxes. But now this scandal is expanding into the tax area. Hookers and tax form 1099. How can I not blog this information for you.

Michelle Braun, who allegedly made at least $8.5 million for her job as a madam, was eventually busted by the feds for charges related to a prostitution ring. You might recall she operated a high end call girl service which catered to Hollywood actors and royalty (think Charlie Sheen).

Interestingly, she always paid her taxes – smart woman!

Braun has told TMZ that two of the women who have claimed to have relationships with Tiger Woods, Jamie Jungers and Holly Joy Sampson, were active in her escort service. Braun paid the women for their services out of Global Travel Network, her escort front. And she issued them forms 1099.

Tiger or no Tiger, the best part of this story is the whole “upstanding tax citizen” issue. Braun was apparently properly issuing forms 1099 for “non-employee compensation.” Remember, according to the Tax Code, even compensation received for illegal activities is subject to tax. Clearly, this woman had some pretty savvy tax pros at her side.

You can view the alleged tax forms here.