Full timers warning
For you folks who full time. We were sitting by the fire with the owner of a RV park. ( We were spending the week.) He brought up the full timers helps keep the lights on during the winter. He also...
Forum Discussion
westernrvparkowner wrote:
The IRS and it's software is pretty sophisticated. That software has profiles of most businesses. A restaurant that only accepts cash would be out of the norm. That the business only accepts cash is easily identified since it wouldn't have a 1099 from a credit card processing company. A cash business is always going to be subjected to greater scrutiny. Furthermore, it is almost a sure thing that such a business would be either a sole proprietorship or a subchapter S corp, meaning all the income would be filed under the business owner's personal tax return. Now add onto that the fact the business owner paid cash for an automobile which would require the auto dealer to file Form 8300, for a cash transaction over $10,000. If that business owner's tax return didn't indicate income to support such a cash transaction, you can bet an audit generated entirely by the IRS' software would be a real possibility. It isn't harassment, it is simply following a very clear road map.
You are correct about the cash transaction, and I already said that. The business is not a restaurant. The harassment is forcing taxes to be paid on income that was not received. Not every ketchup, coffee creamer, paper cup, etc. equates to a sale.
