Horsedoc wrote:
We have stayed there. We were just traveling w/o reservations and they told us the best time to get a site was in the AM when people were checking out. We showed up and the guy at the desk said there were several sites coming open and to drive around until we found one, claim it and then come back to the office to check in.
It is not the most picturesque CG we have stayed in, but we only slept there. Back then it was 40 dollars and no credit cards. "Yes Mr IRS Man, it was slow this season and we really didn't make much money." ;) Not sure if that was for a tax dodge or just to simplify books and finances. Nice folks
About 99% sure it worked out to be a tax dodge. That might not be the intent (most likely intent is the owners live in the 19th century and somehow believe no credit cards simplify the business) but it is almost incomprehensible that all the cash gets accurately reported. It's just too easy to pocket some, to pay bills and not enter the transaction, to have the staff skim the till etc. It is a very ill conceived plan. Today, many people travel with only small amounts of cash, very few can pay cash for a week's stay without a visit to an ATM, which gives them a reason to go elsewhere. To others, it just feels shady.
The IRS takes an extra long look at cash businesses. A business that takes only cash out of an industry that does close to 90% of it's revenue in credit cards would instantly be selected for scrutiny by their computers. Nobody wants an IRS audit and a cash only policy is an engraved invitation.
Finally, skimming cash lowers the profits the business reports dollar for dollar. That annual profit is the number that forms the basis of the value of the business. If the park skimmed $10,000 in cash, they would have saved around $2500 in state and local taxes. That same $10,000 reported as higher gross profit would equate to an $80,000 to $100,000+ increase in selling price. You have to save that $2500 for a whole lot of years before you have saved more in taxes than the value of the park has been diminished.