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Source link: http://archive.mises.org/12502/the-war-on-cash-heats-up-in-las-vegas/

The War on Cash Heats Up in Las Vegas

April 18, 2010 by

IRS Special Agent in Charge Paul Camacho has been meeting with nightclub owners in Las Vegas and has told them they must monitor the spending activities of their customers who pay cash. A customer spending $10,000 a year in cash with need to fill out a Cash Transaction Report (CTR).

That’s right, $10,000 per year. So, a customer who drops in 10 times a year and drops $1,000 each trip, a CTR needs to be filled out.

After all, “That investment fraudster, his victim could be your grandmother, your parents, your relatives, your neighbors,” Camacho said. “When they come to Las Vegas and spend thousands of dollars in cash, that’s money laundering. That’s why you need to do it. That’s doing the right thing.”

Camacho said, “Charge cards are fine. People who want to spend a lot of money in Vegas legitimately, hey, I live in the community, I like that.”

So, if you buy with cash you’re presumed to be a crook. Buy with plastic and you’re an upstanding citizen, doing the right thing. Bartenders and bouncers will have to double as bookkeepers.

This story comes on the heals of the IRS meeting with Strip Club owners in Vegas who tip cabbies for bringing patrons to their clubs. The IRS is demanding that the cabbies be issued 1099s.


HL April 18, 2010 at 3:45 pm

Awesome! I have a running bet that Vegas is the next Detroit. This excellent move by sharp law enforcement agents will shift the line in my favor. Perhaps, as a bonus, I will get to witness the first time a free-spending fellow at La HotStuff Night Club is presented with the demand for his real name and social security number. Ha! “Sorry, sir, but before I get you another $5,000 bottle of booze, please present your papers. Oh, and is this young lady gyrating next to you your wife? Does she have her social security card handy?”

This should make it easier for wealthy Mexicans and Chinese nationals to decide where to spend their money.

Robert April 19, 2010 at 1:21 am

HL makes a good point. What is the tipping point? Who knows when Cuba reopens it might take the business or maybe Mexico will build a Las Vegas south of the border.

HL April 21, 2010 at 4:59 pm

I kind of have to wonder if all this plays a role in Wynn’s thinking about where the future in gaming lies?

LvMIenthusiast April 18, 2010 at 11:14 pm

Is there any damn place these days were bureaucrats can’t keep their grubby little paws off of?

geoih April 19, 2010 at 6:02 am

Nope, and it will only get worse. I predict that it’s only a matter of time before cash is banned. All transactions will be electronic and you won’t be able to buy a candy bar without it being tracked.

Guard April 20, 2010 at 3:43 am

Quite. The worst part of it is that eliminating cash as legal tender will force you into the banking system with its layer upon layer of fees and penalties. Right now many businesses give a discount for paying cash because they escape being gouged by debit and credit card company fees. We’ll lose that. In the past one could take a check to the bank it was written on and get it cashed. Even the bank the check is written on now charges a fee to cash it.

Nate April 19, 2010 at 6:03 am

So much for innocent until proven guilty.

mundi April 19, 2010 at 7:08 am

What is most weird about these things is the $10,000. Where does it come from? Will it change with inflation? Where I live there are already laws requiring you to have bank receipts etc. at any time you are holding more than $5,000 in cash otherwise you have to prove you obtained it legally…

Shay April 19, 2010 at 9:29 am

So, if you buy with cash you’re presumed to be a crook. Buy with plastic and you’re an upstanding citizen, doing the right thing. Bartenders and bouncers will have to double as bookkeepers.

Or a counterfeiter (perhaps of the legal kind). But isn’t it obvious what the real reason is? They don’t want anyone using cash for anything, because it can’t be reasonably tracked like plastic can. At least you can still pay for groceries with cash, for now…

billwald April 19, 2010 at 10:25 am

Less than 2% of the US money in circulation is cash and half the cash is outside the country. Half the US economy is under the table, probably gambling and dope money.

I propose eliminating all folding cash and issue coins up to $20, large enough denomination to buy breakfast but to small to fill up an attache case and bribe a senator.

Then eliminate the income tax and replace it with an electronic transfer tax.

HL April 19, 2010 at 12:01 pm

In the meantime, I now carry this 1099 on my person at all times. i-Phone should create a 1099 app for night and strip club patrons. The dancers and servers can set up business entities and entity tax id numbers to avoid giving out their real names (Candy Mountains, LLC; taxpayer id 44-42-26-32). The feds can slow things down, but they can’t kill the party completely. Yet.

HL April 19, 2010 at 1:29 pm

I should add this form to the pile I carry around with me every day. I do believe the i-Phone and i-Pad will solve many of these problems. Just pop the document up, fill it in, email it to the proper authority, email a copy to your CPA and then email a copy to the recipient. Poof. Maybe Apple should have a new catchy slogan: Making Fascism Easier on You.

(OMB/IRS does need to figure out the ground rules for 1099′s and CTR’s in strip clubs. If the dancer sits on the customer’s lap while filling out the forms, does that count as one more dance? If the patron pay her for that time, is it deductible as a legitimate compliance expense?)

Jay April 19, 2010 at 2:20 pm

“Ma’am, I’ll need a receipt for that lapdance”.

Cybertarian April 20, 2010 at 11:16 am

It’s more likely the war on the Middle Cash !!! Pun Intended.

Vanmind April 20, 2010 at 8:44 pm

Seriously. I ordered a pizza the other day, and the delivery guy was perplexed that I didn’t want to use the debit machine. Actually told me that he “just started his shift and have no change.” What kind of delivery person doesn’t understand the concept of a float?

The short answer is: a delivery person who gets few tips from cash users.

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