years ago here in Jersey, the IRS went out on a spree to get the restaurants and pizzerias for tax evasion.
most of these guys were putting alot of sales under the table, and paying 1/2 their staff under the table.
The IRS put a requisition from all their suppliers on goods ordered. they used a formula and figured out what they should have made.
guess what? they got busted for alot of $$$$.
I have been made aware that my merchant services (amex, chase, mc, visa) will report to the goverrnent all their payout to me.
they are getting ready to use computer analisys to catch tax evaders.
to a point, I applaud them! there are still alot of industries transferring cash through hands without paying taxes.......... there are also alot of under the table employees being paid!