[Dixielandjazz] Re: insurance

TCASHWIGG at aol.com TCASHWIGG at aol.com
Mon Jul 12 09:41:53 PDT 2004

In a message dated 7/12/04 12:39:53 AM Pacific Daylight Time, 
robert at ringwald.com writes:

> Wow, when I see/read all of the scams that Tom Wiggins writes about, below,
> I think to myself, why didn't I think of doing that?
> Actually, even if I had thought of doing them, I wouldn't have.  But I
> always marvel at the creative ways that people come up with to beat the
> system, or beat other honest folks out of a buck.
> In my case, when I was performing regularly in night clubs, I never saw one
> musician file a claim, or do any of the things that Tom lists below.
> I am not disagreeing with Tom, I am just saying that in 30 years of playing
> 6 to 7 nights a week in clubs, I never saw any of that happen.

Bob you are one of the good guys who just happens to be a musician, and yes 
there are many more like you out there, but there are also may more of the 
others of whom I speak.

I have had no less than Seven IRS Audits because of these kind of guys trying 
to beat the system and attempting to revert their scams and tax evasion 
tactics onto me, I have even experienced the company of a Federal Tax attorney 
being sent out to audit me from Washington DC.  Which will show you how serious 
the problem is.

It always evolves around some clown getting paid cash and not reporting his 
income, yet driving around in a new car, living in a nice home, wearing 
expensive jewelry and clothes, buying boats, etc., and basically living high on the 
hog, ( a lot higher than I do).

When they get caught the only source they can think of that might have some 
records to prove anything they may or may not have said is usually me so they 
start by telling the IRS that I took care of everything for them and took out 
taxes and probably did not pay them, all of which of course is simply not true, 
which I quickly prove to the IRS.

I got stuck with this scam once when I was young and naive and had to pay 
$12,000.00 worth of taxes for three sidemen that had been paid in cash and 
reported me as the boss and contractor who had taken care of everything.  Of course 
they had refused to work if I took out taxes or paid them with a check.  Never 
again, I claim every dollar of income that I touch and I also claim and write 
off every dollar that I spend and keep records of it.

In seven audits, I have never had anything negative reported and or false 
allegations proven against me nor any reversals or changes in my original tax 
returns as filed.

I often go back several years and prepare the tax returns for some of my 
musicians and clients because they get into big trouble for not filing returns for 
four or five years, it almost always results in their not owing anything and 
getting refunds from their other sources of income that had taxes taken out, 
often from their wives salaries.  Once they know how to keep records and do it 
they find that they should have been doing it all along and would have been 
able to finance their own careers with the help of the IRS if they had not been 
trying to dodge and beat the system all the time.  Believe it or not the IRS 
can be the Musicians best friend if he knows what he is doing and does not try 
to cheat them.

This situation with musicians has caused the IRS to put almost all folks in 
the entertainment industry on the hot watch list for audits.


Tom Wiggins

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