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42% to 65% in Cash?
A Midwest shop owner is currently being audited by the IRS.
Why?
Because he does not show enough cash sales. According to the IRS a typical business like his does 35% to 58% of sales in credit cards and the balance in cash. He does nowhere near those numbers. Frankly we know of no urban shop (as this shop is) that does 42% to 65% of sales in cash. Many shops in urban settings see little or no cash sales in a typical week as car service has become a “card” purchase for most folks.
It seems that the IRS is either getting its numbers from some remote Alaskan village or from statistics gathered during the Kennedy administration.
Has anyone else had a similar experience?
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3 Replies
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Wow. We would be less than 10% maybe a lot less, I don’t see the need to check, but cash is a very small part of our receipts.
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I just did a quick tally for 2013 and found that cash and check were less than 20%. I did not include debits or money orders
Andy -
IRS numbers say what??? My shop is located in northern Illinois and I consistently run about 7 percent of my total sales paid with cash. Credit cards are king, debit cards, personal checks and a distant cash is the order.
You keep accurate records, pay all of your taxes and then some and they still harass you. Give me a break!
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