Could be, but there are plenty of good reasons for a cash only business model.
No credit card transaction fees No risk of bounced checks No extra fees from your bank for depositing or writing too many checks Less administrative paperwork and overhead on bookkeeping
The fact that they are so much off the "financial grid" is why they go after them. Hard to track you transactions with no readily seen records tied to you.
It is intrusive and should not be legal to seize assets with no evidence of a crime.
"there are plenty of good reasons for a cash only business model." I use a lot of cash too. I've never had someone offer to pay in cash, but my wife sees it sometimes. Our reasons are the things you say, not to evade taxes. Another advantage of cash is it's an immediate way of showing value. You can put groups of C-notes on the table, and there's no question the funds are good and you're serious about the deal.
On Thursday, in response to questions from The New York Times, the I.R.S. announced that it would curtail the practice, focusing instead on cases where the money is believed to have been acquired illegally or seizure is deemed justified by “exceptional circumstances.”
"Exceptional circumstances" means they can arbitrarily decide to do whatever they want to do.
I gave at the office. The check is in the mail. Trust me. Politicized enforcement? We'd never do THAT. I'm from the government and I'm here to help you.
Keep in mind the "tell me how you're going to measure me and I'll tell you how I'm going to behave" part, too!
Probably some IRS weenie was getting measured on how much money they were collecting with this ruse and it just mushroomed as the word got out around the IRS...
No, I bet she is a lifelong Democrat and after this fiasco.....she will still vote Democrat. It is astonishing but many small business people like this lady are very liberal in their outlook, thinking that laws against big evil corporations and taxes on the rich will not affect them as they are "Little Guys". Just like most middle class soccer moms also think this "hound the rich" attitude of the mob will not get them, when of course we all know that it is precisely the middle class and the small businessman that the politicians go after because "That is where the money is" and they are too small and lacking in power to defend themselves.
I believe the report point is even lower on a non business account. $3000 in a single deposit if cash.
I remember reading that, I believe as part of the Dodd-Frank financial reform mess. But it could have been changed since due to too much pushback from banks and consumers both.
That is concerning, because our small business routinely does deposits around the $10,000 level, and we never fill out any special paperwork. What a stupid rule, criminals know the law better than normal citizens, and there are many, many ways to loophole this if you really want to.
But of course the money launderers do know this. Do you want to bet that they have the algorithm down pat? It is probably like: "Every 6th deposit must be over $10,000. All others < $10K."
Same ole bureaucratic SIERRA, they do it because they can. In Middlesex, NJ prosecutor's seized a Corvette they really liked because they alleged that the 60 Y.O. Insurance broker had sold Insurance to a drug dealer for his girlfriend's car, and that made his corvette a drug profit confiscation. The Case is waiting to be heard by the NJ Supreme Court.
They have no requirement to prove anything, and authority to take whatever they want. If they really only used this against drug lords and organized crime, that would be one thing. When they use these tactics against obviously law abiding citizens/businesses, they have exceeded their authority. And it typically has a political motivation behind it.
They aren't masquerading, zealous power-seeking has always characterized the viro movement. The viros -- establishment and otherwise -- are waging a war against private property owners and industrial civilization. "Liking the environment" is not a reason to support them. The environment is our surroundings. The viros' demands to control the environment are demands to control everything around us, i.e., everything, i.e, everything we do personally and are not permitted to do under their ideological social controls. They have a totalitarian mindset on behalf of 'nature' regarded as a mystical, intrinsic value superseding human life and values, pretending that their ideology is "science". Those of us who personally enjoy nature as human beings have nothing in common with that.
The contemporary viro movement grew out of the radical, violent New Left of the 1960s and early 70s when they called themselves the Ecology Movement. The ecology movement was founded in the 1860s of counter-Enlightenment Germany by an anti-individualist Hegelian biologist, Ernst Haeckel, who regarded society and nature as organic wholes. They began with -- and continue to this day -- to demand rule by bureaucracy, paranoid for 'nature' in the name of 'science', in which even the most ordinary human activities can be done only by bureaucratic permission, when allowed at all. It is the opposite of individual rights protected by constitutionally limited government.
The viro movement consists of nature worshiping, misanthropic nihilists. It is about suppressing human values, not fighting pollution, except that they regard human activity as such as pollution. The leaders are living high off the hog with hundreds of millions of dollars a year for lobbying, litigation, and activism. It's no accident that the viro organizations and their leaders routinely support the worst statism of the progressive Democrats and the worst "liberal" Republicans, and have become entrenched in powerful government agencies like EPA, NPS, BLM, and their state equivalents.
For a comprehensive analysis of the viro movement, its goals, organizations, financing, and motives see:
3. Ayn Rand first observed the nature of this movement in the early 1970s when it was still called the 'ecology movement' and most people were swept up by their rhetoric and giving them what they wanted politically. That resulted in the political creation of the dictatorial EPA under Nixon, a wave of mass eminent domain condemnations by the National Park Service for preserving other people's private property nationwide throughout the 1970s until Reagan mostly defunded it, and much more that is still destructive and worsening today, all of which resulted from the nihilistic New Left 'ecology' mentality observed by Ayn Rand. See the title essay in her anthology The New Left: The Anti-Industrial Revolution, later reissued and expanded as The Return of the Primitive: The Anti-Industrial Revolution http://www.amazon.com/Return-Primitive-A...
State tax agencies are just as bad, but reported in the media even less. When government at all levels is running a mafia style shake-down racket there is no where to turn.
When we decided to close our retail business we put up a "going out of business sale" drastically reduced prices and went to cash only. Within three weeks we had pretty much cleaned out the store, and what was left over we donated to a local church that did good work with the area children. Looking back, after we realized how simple cash only was we started wondering why we hadn't done it many years before. Now however, being a retailer is so problematic what with regulations and mountains of paperwork, one would be better off just leaving it to Wal-Mart.
No credit card transaction fees
No risk of bounced checks
No extra fees from your bank for depositing or writing too many checks
Less administrative paperwork and overhead on bookkeeping
The fact that they are so much off the "financial grid" is why they go after them. Hard to track you transactions with no readily seen records tied to you.
It is intrusive and should not be legal to seize assets with no evidence of a crime.
IRS likely would think drug money initially, once the bank reported her after the buyout accounts review.
But once they take the money they do not intend to give it back, even if you are guilty of no wrong doing.
I use a lot of cash too. I've never had someone offer to pay in cash, but my wife sees it sometimes. Our reasons are the things you say, not to evade taxes.
Another advantage of cash is it's an immediate way of showing value. You can put groups of C-notes on the table, and there's no question the funds are good and you're serious about the deal.
"Exceptional circumstances" means they can arbitrarily decide to do whatever they want to do.
I gave at the office.
The check is in the mail.
Trust me.
Politicized enforcement? We'd never do THAT.
I'm from the government and I'm here to help you.
Probably some IRS weenie was getting measured on how much money they were collecting with this ruse and it just mushroomed as the word got out around the IRS...
Mission creep, anyone?
http://reason.com/archives/2014/10/22/th...
LOL!
I remember reading that, I believe as part of the Dodd-Frank financial reform mess. But it could have been changed since due to too much pushback from banks and consumers both.
But of course the money launderers do know this. Do you want to bet that they have the algorithm down pat? It is probably like: "Every 6th deposit must be over $10,000. All others < $10K."
Jan
The Case is waiting to be heard by the NJ Supreme Court.
and declares that the IRS is as ruthless as the Viet
Cong whom he was fighting in the 60s. -- j
obviously deserving of the utmost suspicion! -- j
over 125 IQ, one a major patriot and the other a
major environmentalist. who knows??? -- j
The contemporary viro movement grew out of the radical, violent New Left of the 1960s and early 70s when they called themselves the Ecology Movement. The ecology movement was founded in the 1860s of counter-Enlightenment Germany by an anti-individualist Hegelian biologist, Ernst Haeckel, who regarded society and nature as organic wholes. They began with -- and continue to this day -- to demand rule by bureaucracy, paranoid for 'nature' in the name of 'science', in which even the most ordinary human activities can be done only by bureaucratic permission, when allowed at all. It is the opposite of individual rights protected by constitutionally limited government.
The viro movement consists of nature worshiping, misanthropic nihilists. It is about suppressing human values, not fighting pollution, except that they regard human activity as such as pollution. The leaders are living high off the hog with hundreds of millions of dollars a year for lobbying, litigation, and activism. It's no accident that the viro organizations and their leaders routinely support the worst statism of the progressive Democrats and the worst "liberal" Republicans, and have become entrenched in powerful government agencies like EPA, NPS, BLM, and their state equivalents.
For a comprehensive analysis of the viro movement, its goals, organizations, financing, and motives see:
1. Alston Chase, In a Dark Wood: The Fight over Forests and the New Tyranny of Ecology http://www.amazon.com/In-Dark-Wood-Fores...
2. Ron Arnold, Trashing the Economy: How Runaway Environmentalism is Wrecking America http://www.amazon.com/Trashing-Economy-R...
3. Ayn Rand first observed the nature of this movement in the early 1970s when it was still called the 'ecology movement' and most people were swept up by their rhetoric and giving them what they wanted politically. That resulted in the political creation of the dictatorial EPA under Nixon, a wave of mass eminent domain condemnations by the National Park Service for preserving other people's private property nationwide throughout the 1970s until Reagan mostly defunded it, and much more that is still destructive and worsening today, all of which resulted from the nihilistic New Left 'ecology' mentality observed by Ayn Rand. See the title essay in her anthology The New Left: The Anti-Industrial Revolution, later reissued and expanded as The Return of the Primitive: The Anti-Industrial Revolution http://www.amazon.com/Return-Primitive-A...
Whats in a label eh?