My income tax professor, a former IRS man, was lecturing on the famous tax case, United States v. Harris.
I won't bore you with the details, but basically in this case, two beautiful twins had become the mistresses of some old rich guy. They received all kinds of money and jewelry from him in exchange for their, um, company. They don't claim any of it on their income tax filing, and get prosecuted for criminal tax fraud.
As an aside, he had this to say:
"Once, while using the bathroom at the law school, I looked down and noticed a Playboy on the floor. I flipped through it, and noticed an article about these two twins. In the article they were talking about how they like to receive cash, diamonds, furs, etc. from their elderly paramour."
"And do you know what I noticed? I mean, aside from their nice assets? I thought to myself "there is going to be a tax issue here." And you know what? I was right."
Two questions here: First, if you find a Playboy in a public men's room, would you pick it up and leaf through it? Aren't there certain things you just assume if you find a discarded nudey magazine on the floor of a public bathroom?
Second, what guy ponders the tax issues raised in a Playboy? A true tax man - that's who.
So says Artsy Fartsy at 22.2.06