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Cash-only business questions
A few popular long standing places on LI are cash only. Restaurant, barber, etc. I'm not a big fan of cash only but I'll still go to certain places.
I saw some restaurant owners were just arrested for tax evasion. I started thinking about the cash businesses I know of.
How does it work? I assume they are cash only to not have to report all earnings, right? Or am I wrong? Do places like this get audited more?
Just curious and figure someone would know. Thanks!
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Posted 4/21/17 4:24 PM  |
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w8andsee
LIF Adult
Member since 10/09 1193 total posts
Name:
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Re: Cash-only business questions
I always assumed they were cash only because they didn't want to pay the credit card fees.
I'm curious too now if they get audited more often.
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| Posted 4/21/17 4:28 PM |
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BargainMama
LIF Adult
Member since 5/09 15660 total posts
Name:
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Cash-only business questions
I assume they are cash only for hiding income purposes.
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| Posted 4/21/17 4:56 PM |
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RainyDay
LIF Adult
Member since 6/15 3998 total posts
Name:
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Cash-only business questions
I am sure there are a lot who do it to hide income.
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| Posted 4/21/17 5:09 PM |
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Cash-only business questions
But if they are hiding it and super popular, wouldn't they be audited? I'm specifically thinking of one really popular eatery that's been around forever and they are cash only. I would assume they'd be on the radar, no?
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| Posted 4/21/17 5:12 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Cash-only business questions
Of course they are SUPPOSED to report all cash income, but do they? Probably not.
I feel like cash only is a great way to hide some income and that is why they ultimately are cash only
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| Posted 4/21/17 5:13 PM |
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BargainMama
LIF Adult
Member since 5/09 15660 total posts
Name:
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Re: Cash-only business questions
Posted by EatingMyVeggies
But if they are hiding it and super popular, wouldn't they be audited? I'm specifically thinking of one really popular eatery that's been around forever and they are cash only. I would assume they'd be on the radar, no?
Who knows, but I have to say, we ate at Orto once, cash only. That is so annoying, especially when it's $$$, and who carries all that cash on them?! I would never go there again. I guarantee they don't report all their income.
Message edited 4/21/2017 5:14:49 PM.
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| Posted 4/21/17 5:14 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Cash-only business questions
Posted by BargainMama
Posted by EatingMyVeggies
But if they are hiding it and super popular, wouldn't they be audited? I'm specifically thinking of one really popular eatery that's been around forever and they are cash only. I would assume they'd be on the radar, no?
Who knows, but I have to say, we ate at Orto once, cash only. That is so annoying, especially when it's $$$, and who carries all that cash on them?! I would never go there again. I guarantee they don't report all their income.
I avoid cash only like the plague for that reason! I never know how much we aer going to spend so I never know how much to bring. And I don't want to be sitting there worried if my bill will go over what I brought all night. When I go out to eat I want to enjoy myself and order another drink without thinking, hmm I wonder if I should I might run out of money.
Please, it's not 1940 anymore.
And even if they get audited, if they are taking cash home and hiding it and not reporting it, how would the audit even find it.
Very hard to trace
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| Posted 4/21/17 5:18 PM |
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stinger
LIF Adult
Member since 11/11 4971 total posts
Name:
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Re: Cash-only business questions
Posted by NervousNell
Posted by BargainMama
Posted by EatingMyVeggies
But if they are hiding it and super popular, wouldn't they be audited? I'm specifically thinking of one really popular eatery that's been around forever and they are cash only. I would assume they'd be on the radar, no?
Who knows, but I have to say, we ate at Orto once, cash only. That is so annoying, especially when it's $$$, and who carries all that cash on them?! I would never go there again. I guarantee they don't report all their income.
I avoid cash only like the plague for that reason! I never know how much we aer going to spend so I never know how much to bring. And I don't want to be sitting there worried if my bill will go over what I brought all night. When I go out to eat I want to enjoy myself and order another drink without thinking, hmm I wonder if I should I might run out of money.
Please, it's not 1940 anymore.
And even if they get audited, if they are taking cash home and hiding it and not reporting it, how would the audit even find it.
Very hard to trace
I went to Montauk and ate at a cash only business (didn't know til it was time to pay). They are making SO much money on an overpriced breakfast in that area and then to not want to pay fees?! I wouldnt go back.
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| Posted 4/21/17 5:24 PM |
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Sparrow
LIF Adult
Member since 11/10 6826 total posts
Name:
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Cash-only business questions
I really think they shouldn't be legal. There is no good reason to only accept cash. I rarely carry any cash and have been caught off guard more than once. Very irritating and I'm sure it's always so that they can scam the government.
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| Posted 4/21/17 8:04 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Cash-only business questions
Posted by EatingMyVeggies
But if they are hiding it and super popular, wouldn't they be audited? I'm specifically thinking of one really popular eatery that's been around forever and they are cash only. I would assume they'd be on the radar, no?
Yes and they likely get audited on occasion. During an audit they will want to see the bank statements for the business. If they are not reporting the sales income, but are depositing the cash into their bank accounts, they are screwed. A lot of times they may also audit the personal accounts of the owners of a business that's being audited. So if the owners are depositing the cash for the business, they are also screwed.
They would have to be hiding the cash under the mattress, or maybe shipping it offshore to hide it properly. Who knows. Or they simply take the cash and shop at other "cash only" businesses themselves. Easy way to spend the money they are hiding.
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| Posted 4/21/17 9:35 PM |
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pumpkinmom
LIF Adult
Member since 5/12 2912 total posts
Name:
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Cash-only business questions
I think they don't want to deal with credit cards. Even if they weren't cash only, businesses that take a lot of cash could under report their income - I wouldn't assume all cash only businesses are cheating and all that take credit cards aren't.
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| Posted 4/21/17 11:27 PM |
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Mama2S2013
LIF Infant
Member since 5/14 166 total posts
Name:
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Re: Cash-only business questions
I was just thinking about this the other day. I went to white post farms and they are cash only....
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| Posted 4/21/17 11:30 PM |
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Cash-only business questions
I think some do it to hide income. Taking credit cards is an added expense. If you are selling something inexpensive I think it's reasonable to not have to pay a percentage to the credit card processing company.
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| Posted 4/22/17 5:52 AM |
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Cash-only business questions
My mom owns a cash only deli. She has an accountant come every month to balance her books. No hiding of income. Every thing that goes in to her accounts is monitored and taxed. She does it to not pay credit card fees and she makes money off of the AM on premises.
ETA- I think many places that take credit cards are playing the system because many times I pay cash there and don't get charged tax for doing so. EX) mechanic, furniture store
Message edited 4/22/2017 6:16:53 AM.
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| Posted 4/22/17 6:15 AM |
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seaside
LIF Adult
Member since 6/08 3101 total posts
Name:
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Re: Cash-only business questions
Businesses and individuals hide income all the time. The lost STOLEN tax revenue could probably fix much of what needs fixing in this country. I am surprised that more politicians who want to provide more for people don't tap into this idea.
The honor system does not work when people are so dishonorable.
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| Posted 4/22/17 2:44 PM |
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loveus
LIF Adolescent
Member since 9/13 684 total posts
Name:
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Cash-only business questions
I worked in a business that majority was cc business but when cash was paid majority of it was put in the bosses pocket.
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| Posted 4/22/17 2:52 PM |
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Mushesgirl
Too blessed to be stressed
Member since 4/09 6691 total posts
Name:
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Re: Cash-only business questions
Posted by ave1024
Posted by EatingMyVeggies
But if they are hiding it and super popular, wouldn't they be audited? I'm specifically thinking of one really popular eatery that's been around forever and they are cash only. I would assume they'd be on the radar, no?
Yes and they likely get audited on occasion. During an audit they will want to see the bank statements for the business. If they are not reporting the sales income, but are depositing the cash into their bank accounts, they are screwed. A lot of times they may also audit the personal accounts of the owners of a business that's being audited. So if the owners are depositing the cash for the business, they are also screwed.
They would have to be hiding the cash under the mattress, or maybe shipping it offshore to hide it properly. Who knows. Or they simply take the cash and shop at other "cash only" businesses themselves. Easy way to spend the money they are hiding.
yes, also easy to launder dirty money this way, another reason to not want to shop there
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| Posted 4/22/17 7:55 PM |
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BargainMama
LIF Adult
Member since 5/09 15660 total posts
Name:
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Re: Cash-only business questions
Posted by myboysmyheart
My mom owns a cash only deli. She has an accountant come every month to balance her books. No hiding of income. Every thing that goes in to her accounts is monitored and taxed. She does it to not pay credit card fees and she makes money off of the AM on premises.
ETA- I think many places that take credit cards are playing the system because many times I pay cash there and don't get charged tax for doing so. EX) mechanic, furniture store
This is silly though. The lost revenue for not accepting credit cards probably exceeds the amount of fees she would be paying on the CC transactions.
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| Posted 4/22/17 9:51 PM |
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Re: Cash-only business questions
Posted by BargainMama
Posted by myboysmyheart
My mom owns a cash only deli. She has an accountant come every month to balance her books. No hiding of income. Every thing that goes in to her accounts is monitored and taxed. She does it to not pay credit card fees and she makes money off of the AM on premises.
ETA- I think many places that take credit cards are playing the system because many times I pay cash there and don't get charged tax for doing so. EX) mechanic, furniture store
This is silly though. The lost revenue for not accepting credit cards probably exceeds the amount of fees she would be paying on the CC transactions.
Honestly, it's such a small percentage. We have signs everywhere, on our menu and on line, cash only. The business has been this way since the 60's.
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| Posted 4/23/17 11:52 AM |
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jlm2008
LIF Adult
Member since 1/10 5092 total posts
Name:
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Re: Cash-only business questions
Posted by BargainMama
Posted by myboysmyheart
My mom owns a cash only deli. She has an accountant come every month to balance her books. No hiding of income. Every thing that goes in to her accounts is monitored and taxed. She does it to not pay credit card fees and she makes money off of the AM on premises.
ETA- I think many places that take credit cards are playing the system because many times I pay cash there and don't get charged tax for doing so. EX) mechanic, furniture store
This is silly though. The lost revenue for not accepting credit cards probably exceeds the amount of fees she would be paying on the CC transactions.
That's how I feel. The cc fees are so small, but you can bet I'm leaving a place that's cash only. It's 2017, who the heck carries cash and why would you???
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| Posted 4/23/17 12:12 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Cash-only business questions
Posted by jlm2008
Posted by BargainMama
Posted by myboysmyheart
My mom owns a cash only deli. She has an accountant come every month to balance her books. No hiding of income. Every thing that goes in to her accounts is monitored and taxed. She does it to not pay credit card fees and she makes money off of the AM on premises.
ETA- I think many places that take credit cards are playing the system because many times I pay cash there and don't get charged tax for doing so. EX) mechanic, furniture store
This is silly though. The lost revenue for not accepting credit cards probably exceeds the amount of fees she would be paying on the CC transactions.
That's how I feel. The cc fees are so small, but you can bet I'm leaving a place that's cash only. It's 2017, who the heck carries cash and why would you???
Ditto. Yesterday I was dying for a bagel after my chiro appt. There was one right next door but it was cash only and I had zero dollars on me. So I had to drive to another one that accepts debit cards. I imagine they lose a lot of business like that.
Time to get with the times. Cc fees are just a cost of doing business. Even the girl who does my hair out of her basement accepts cards via the square app on her phone.
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| Posted 4/23/17 12:39 PM |
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Jennifer
Happy
Member since 5/05 4230 total posts
Name:
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Re: Cash-only business questions
I remember going to Peter Luger and it was cash only.
But I remember my sil paying with her debit card. She had to get up and sign for the check, not sure if she had to put her pin there. I just rememeber her having to leave the table. It was a few years ago and I am not sure if it has changed. Honestly, I would never go back. I didn't think the steak was that great. The waiter was annoyed that he had to give more than 2 menus for a table of 8. Totally not worth the money. But that might be a whole other topic.
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| Posted 4/23/17 3:26 PM |
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WannaBeAMom11
LIF Adult
Member since 1/11 7391 total posts
Name:
Name
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Cash-only business questions
I hate cash places and places with minimum cc amounts. I avoid those places like the plague as I rarely ever have cash on me. I was pissed when I went to a play place and there was no mention of cash only anywhere on the flier or at the place that cash was only accepted. I had to walk with my 3 year old a couple of stores down to get cash, got hit with fees but couldn't not go back because my dd had been looking forward to going for days.
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| Posted 4/23/17 8:08 PM |
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blu6385
Member since 5/08 8351 total posts
Name:
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Re: Cash-only business questions
Its fing annoying places that take cash only. I hate them.
I assume its mostly because they want to report income on all of it. And maybe partial because they don't want to pay the card fee. But I am sure most places that take credit card have their prices cover the credit card fee
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| Posted 4/23/17 8:57 PM |
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