After four high school friends are involved in a hit-and-run road accident, they dispose of the body and vow to keep the incident a secret. A year later, they each start receiving anonymous letters bearing the warning "I Know What You Did Last Summer."
Three young boys pool their money and pay V, a kindhearted prostitute, to strip for them. Afterward, she drives them home to the suburbs -- but then her car breaks down. It's just as well, though, because a mobster named Waltzer is after her, and V realizes the suburbs are the perfect place to hide. But things get a lot more complicated when V falls in love with Tom, a single father who is unaware of her real profession.
During the final weeks of a presidential race, the President is accused of sexual misconduct. To distract the public until the election, the President's adviser hires a Hollywood producer to help him stage a fake war.