Hello there, fellow DP members, well I'm 18 years old, I started building an adult website, www.bestporn.asia/vid/ , I signed up as an affiliate to www.kickasspays.com which uses CCBill.com to manage all their revune system and what not. (I had to provide my SSN to CCBill upon signing up as an affiliate to KAP. Well as I'm 18, i've never done my taxes or whatever the correct term is. So I don't have a real job, i just freelance in the web development/Software programming/graphic design fields. I decided to start this porn site, and well I actually havent made any money yet, as I havent activated the Link Code to register the clicks on my site. But i was wondering Will i have to report this income, if i start making it? If so will I have to openly say, that I make money with a porn website? Or will I just be able to say im an affiliate to CCBill? Also if I do make money and don't report it, what are the consequences?
First we need to know which country you are in which I am assuming is the USA due to the SSN. While I do not know much about the states, I do know that you have to declare your income to the IRS and should it then be discovered that you are not declaring it, the IRS will see it as tax fraud so whatever the USA does about that is what could happen.
You should report it and you should be able to put web designer/programming or graphic designer down as your job. There is no need to go into detail about what websites you make really.
Typically this is done for tax reporting purposes to report to the IRS what it pays people like you. You should expect to receive a summary of everything paid to you and the IRS will get a copy. That should probably provide you with an answer to your question.
Well if you were in India then this will be considered as illegal. though watching porn is not illegal but any activity to spread it is illegal. So it will be counted as black money.
Allow me to suggest that you think about it this way... If you are sensitive to declaring exactly what it is you do to make a living, imagine what happens when the IRS decides to take action against you for tax fraud. That is public record, and the media loves finding the juiciest angle to report. If you are in the US, you need to set up an LLC, get a tax ID and filter all business revenue through the company (that means changing your SSN to the tax ID, or FEIN, with CCBill). This should all cost under $100, depending on where you are. Then, when you actually do start making some money, consult with an account & an attorney to make sure you are doing everything right. The LLC protects your personal assets from liability, as long as you do not mix resources between your personal accounts and business accounts. You want this to be an entirely independent entity, so you can walk away from it if it all blows up on you.
Relax buddy. You have plenty of time to do your taxes. Focus on earning first. You can pay taxes years down the line with no issues.