Will this be the death blow to strip clubs?

No. As stupid as this proposal is its to get transparency on the crypto world moving money in and out at high and low levels. This is the new paradigm and the dike they are sticking their fingers in.

It won't be a death blow to strippers but it will make anyone that works for cash have to report more of their income to the IRS. They still won't report it all since some of their cash never gets deposited into a bank account so it still won't be reported. It will probably lead a lot of cash based workers to put their money onto prepaid debit cards instead of into bank accounts.

It could also cause an issue for some married PLs that hide their hobby money from their wives in a separate bank account. It could be rough explaining to your wife why you have a secret bank account with thousands of dollars flowing through it during a tax review/audit.

The only way the IRS would be able to find all of the cash strippers make would be to find a way to monitor cash flow within Crown Royal bags and garter belts.

@Ilbbie's link is outdated and the proposal has been increased from $600 to $10,000 annually. Still that's a pathetically small amount and it probably would ensnare strippers, SBs, small-time PLs, etc... Big-time tax cheats have better ways to hide income than a bank account. No?

This idea is asinine. To put in perspective: I do money-laundering compliance for one of the biggest investment banks on the planet (and holy shit I want OUT!). Last night I finished off a 15-hour day by reviewing accounts for a couple of clients (LLCs), and trying to figure out why certain transactions were occurring (for the most part, they were electronic transfers to accounts based in money-laundering high-risk countries). Those two took me an hour...each. And these are clients who have to be worth, minimum, $5 million.

The cost alone related to hiring enough people to go through activity in every account worth a measly $600, in order to determine if Bob the janitor is cheating on his taxes by not claiming winnings from his weekly poker game, is patently fucking absurd. It's beyond patently fucking absurd. Roughly 125 million HOUSEHOLDS have accounts. Some of you are wealthy...right? Millionaires? How many accounts do you have? Four or five personal checking and savings accounts? A half-dozen brokerage accounts? How many LLCs, trusts, and partnerships do you have? How many accounts do each of those have? The people they're trying to go after for not paying their 'fair share' have hundreds and hundreds of accounts for themselves, their trusts, and their business entities, and each of those probably has several accounts spread out across all the major banks.

If the average number of accounts within a household is 10 (probably too low), and there are 125 million households w/accounts, that's 1.25 billion accounts. Let's say a person can review an average of five of these per hour, because some will be super quick and easy, and others will fuck up the day. 5 per hour x 8 hours per day x 5 days per week x 50 weeks per year = 10,000 accounts reviewed by one person in a year. 1.25 billion divided by 10,000 = 125,000. It would take 125,000 people to go through them all. Now figure the cost of those employees' salary, benefits, payroll taxes, etc., maybe all that averages $160k annually? $160k x 125,000 = $20 billion. Sure -- a lot of it will be automated, and they'll be able to do more than five per hour. So hell, cut those figures to 10%. That's still $2 billion.

The Demoncats chickened out and raised the level to $10K from $600. I still haven't been able to determine if that is a single transaction or cumulative. Since it excludes money from wages, I think it's cumulative. It's just a proposal that is going over like Biden's popularity right now anyway.

There's already too much control over our money .

My current favorite keeps her savings in cash. She learned about informal taxes when a couple of thugs broke into her house and stole her safe and the $13,000 inside it. But mostly she spends money about as fast as she earns it, so the bank doesn't see much of it. As far as I know, this is fairly typical.

It's cumulative-- $10,000 annually

Mike710 that amount is cumulative not single transaction.

ElDuderino_AZ individual transactions aren't being reported or audited, just total annual inflow (minus payroll based wages) and outflow from the account.

That said, I don't see why they need this info because without transaction level detail it is useless to determine how much income is in the account. For example, I have a separate bank account that I use for all of my various hobbies into which I have $400 direct deposited from my payroll every 2 weeks for my fun money to go to strip clubs, concerts, buying woodworking materials and so on. When I go to a strip club I usually withdraw about $1000 to make sure I have more than I will need to have a good time. Most trips I spend $200-500 depending on what happens that night and I end up depositing the other $500-800 back into that same account. If I do this an average of twice a month it is going to show well over $10k of inflow from non-payroll deposits and subject to IRS reporting. However, none of the money in the account came from any source other than my payroll. A top line inflow and outflow report without transaction level details for this account would look basically the same as someone that makes over $10k/year in cash so how does that help the IRS track down unreported income?

Whodey: transaction review would be needed to determine what the money actually is, whether it's income, or whether the spending is unreasonable in comparison to the taxed individual's reported income. Whether they plan to go that far, I dunno, too tired to read into it. But it kinda makes sense with the Corporate Transparency Act, which goes info effect Jan 1. Right now, when you open an account for your LP, Inc, LLC, GP, etc, you're required to identify at least one controller and all individual beneficial owners with at least 25% (or lower, depending on the bank). The CTA is going to require you to just give that information straight to the Dept of Treasury, so now they'll be able to match you up with all of the business entities you own, and of they want to...they can determine if the money in and out is consistent with your reported income. And again, staffing for that would be colossally expensive, so right up the government's alley.

My CF is in her early 30's and has never filed a tax return since she started stripping. I guess I'll have to see if I can get a conjugal visit and get dances from her in a Biden prison. She is not rich but I guess she is the "Rich" that he's going after.

Presumably what the IRS would look for is if your deposits are more than your declared income.

One of my ATFs got a visit from child welfare, after she got arrested on a bench warrant. They asked her how she supported her kid, she told them she had a sugar daddy, and they were satisfied with that. That brings up another issue, if you've got a fav you're dropping major coin on OTC. She could legit call that a gift if the IRS got on her case. I don't know if they can leverage her into giving your name, so they can come after you for not declaring the gift.

Unfortunately, I think it's likely the case that most guys who get married end up divorced or wishing they'd stayed single. If the wife doesn't have similar earnings or assests as the husband, she ends up with a sizeable chuck of his, tax free. Aside from very stupid PLs, strippers can only make the cost of one song if they don't increase rather than decrease your happiness. So, in some moral sense, it seems unfair they have to pay taxes on the money they get from us. Which we have all already paid mucho horking taxes on.

I think it's safe to say that most people who don't declare a lot of cash income make under $100K. If they were about making the income tax more fair, they'd tax capital gains the same as income from working, just index the basis for inflation.

I still doubt that this provision is going to be included in the final bill. It wasn't in the original House version, likely because there is some resistance there.

But even if it was, I doubt that this would impact most strippers. IME many strippers already deposit little and pay a lot of their bills with cash. Landlords willing to rent to strippers often accept cash and utility and cell phone bills can be paid in cash at Walmart and other retailers. Also obviously groceries and other retail items can be purchased with cash. Even auto loans and credit cards can be paid in cash if you obtain them from a bank with a local branch. And anything that can't be paid in cash, like auto insurance, can be paid by money order.

===> "It could also cause an issue for some married PLs that hide their hobby money from their wives in a separate bank account. It could be rough explaining to your wife why you have a secret bank account with thousands of dollars flowing through it during a tax review/audit."

The current proposal exempts accounts paid solely through W-2 earnings. So if a guy is simply having a modest % of his salary direct deposited into a secondary account (an option many employers provide), then he should be fine.

Many strippers don't use banks. My ATF never had a checking account until she asked me to help her open one. We went to the Bank of America branch closest to her house, and we filled out the paperwork together. Within a month she had overdrawn the account and it as closed.

More info on bank accounts may force some people to change their practices. But the IRS can already get that kind of info. And I know a strip club dancer who was being enforced upon. She almost lost her house. I know a guy who owned an auto repair shop, facing the same. These people had made a choice to defy the tax law.

What really does threaten strip clubs is CA AB-5, it destroys the gig economy.

https://hacklerflynnlaw.com/how-assembly…

There will be more lawsuits from retired strippers, and then Deja Vu plans to buy up all the destabilized clubs.

In the area of Labor Law, CA has always been a belwether state.

SJG

Honeyybunn
https://tuscl.net/photo.php?id=8133