I work for an escort service, they gave me a 1099, what do I tell IRS about my occupation and the $10K I paid for security?

You tell the IRS the truth.

In the occupation section of the 1040, you can put "Entertainment"

The cost of the security is tax deductible, as is all other business expenses.

Remember that Al Capone didn't get busted for his crimes on the street, it was his dealings with the IRS that got him. Being honest with the IRS is the correct thing to do. If you return was flagged for review, it would not be hard to tell what you do and why there might be a $10,000 deduction for security on your Schedule C. As long as you have documentation that you paid the security company, no problem.

Also, did you 1099 your security company?

What is important, is: The IRS receives copies of the 1099s and the IRS is aware of your annual earnings. Filing the past due returns ASAP would be in your best interest. Also, the IRS might be concerned with the amount of tips you earned for any given year.

For clarification of tax codes on 1099s and business expenses, visit irs.gov - keywords: instructions schedule c