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.