Retail POS question - ethics?

[widebody911]

I've noticed something interesting at some businesses with POS (point of sale) terminals. I've come across many instances where they work up a total on a small 10 key, but don't actually punch it into the register. At the cafeteria at my office, the guy who usually works the register will usually figure out your total in his head, then type the number into the cash register, make change by hand (the old fashioned way) and then press the 'clear' button and move on to the next guy. Long story short, nothing gets written to the tape. I've seen similar behavior at other small businesses.

My WAG is they do this to lowball their sales, and thus pay less in taxes.

Is my estimation correct, or am I just not thoroughly clued in? I worked in a few retail shops in high school, so I have some sort of idea how things are supposed to work.

[dtw]

Yep. Very common. There's a million different ways to do it. Another common one for restaurants that are not on networked POS is to run one tape at lunch and another at dinner. The lunch tape gets thrown in the trash each day and the dinner one is the only one that gets reported.

Could be the cashier is skimming, too.

[HardDrive]

Oh the stories I could tell....but I won't.

[BlueSkyJaunte]

Is it unethical to cheat Uncle Sam out of his due? No. Is it illegal? Yes.

[lendaddy]

But the retailer is also keeping the sales tax......this is instant additional "profit" or gravy.

This is why I oppose a national sales tax, too much money flowing through too many people.

[Jims5543]

Originally posted by BlueSkyJaunte
Is it unethical to cheat Uncle Sam out of his due? No. Is it illegal? Yes.

LOL!! I was discussing doing a refi on my house for a 2nd mort. (I didn't do it)

The point is the mortgage rep from the bank made the statement, "Oh, I see your self employed, this means we will have to do a stated income". I asked why and she told me that is what everyone that owns a business does.

I responded I do not have to. I take a paycheck and pay taxes like my employees. I can prove my income.

She laughed and said I was a rarity.

So who is being more illegal? The $400 a day sandwich guy or the small business owner hiding all his income and cheating on their axes?

I guess the answer is both.

[stevepaa]

I would guess that those who receive paychecks are indeed much closer to being "tax legal" than those who don't.

And I would guess that maybe ony 1 out of 5 small business owners are even close to being "tax legal".

[VaSteve]

The cashier is probably robbing the place blind. So many small businesses are ripped off by their employees.

[Zeke]

Originally posted by dtw
Yep. Very common. There's a million different ways to do it. Another common one for restaurants that are not on networked POS is to run one tape at lunch and another at dinner. The lunch tape gets thrown in the trash each day and the dinner one is the only one that gets reported.

Could be the cashier is skimming, too.

That may be, but tapes are time stamped. or should be. It wouldn't take the IRS much time to figure that one out. In fact, they can just about figure your projected gross by the ultilities used. Contractors like to load similar materials from 2 jobs into one and report one while cashing the checks on the 2nd. Works for a time, but they get caught when they get greedy. The IRS just has too much information and too many formulas. If you don't fit the parameters, figure on an audit.

I'd put a camera on that cashier.

[nut11]

+1 Milt

87 Blk Coupe

[Jeff Higgins]

Originally posted by milt
That may be, but tapes are time stamped. or should be. It wouldn't take the IRS much time to figure that one out. In fact, they can just about figure your projected gross by the ultilities used. Contractors like to load similar materials from 2 jobs into one and report one while cashing the checks on the 2nd. Works for a time, but they get caught when they get greedy. The IRS just has too much information and too many formulas. If you don't fit the parameters, figure on an audit.

I'd put a camera on that cashier.

If the tax laws were simpler, we wouldn't need the IRS. Things are so out of control on the tax front that no one in the private sector would ever dream up, or try to get away with, such an inefficient and complex scheme. Theses loopholes and scams are the innevitable result of their own complex rules; they are like the little kid in front of the dam trying to plug all of the holes. A simpler tax structure would be easier to enforce and harder to dodge.

[Jims5543]

[true story]

A customer was in my office last week, a Chiropracter who built an office and was in it for almost 10 years. Except, the last 5 years have been a nightmare. His property taxes were doubling every year for 4 years straight. All the while companies like Wal-Mart and Lowes are getting tons of tax breaks in order to be drawn to the town.

Many small business' are being taxed up the butthole and chased out of town.

He sold his building is is now renting in it as he builds another bulding outside the city limits and the taxes are down to earth.

While this is not sales taxes, it shows to you how the small business owner is getting their butt kicked by the local government.

[/true story]

Want to discuss what the Federal government is doing to small business as well?

[Zeke]

Originally posted by Jeff Higgins
If the tax laws were simpler, we wouldn't need the IRS. Things are so out of control on the tax front that no one in the private sector would ever dream up, or try to get away with, such an inefficient and complex scheme. Theses loopholes and scams are the innevitable result of their own complex rules; they are like the little kid in front of the dam trying to plug all of the holes. A simpler tax structure would be easier to enforce and harder to dodge.

If tax laws were simpler (which I'm in favor of, regressive or not regressive, I don't care), there would still be cheats.