Typically they will just lie about sales right, so couldnt tax authorities just monitor the number of people going in and out of businesses where they can track easily sales from the outside?(for example barber shop) Then they could just shut down the operation easily by proving fraud? I might be stupid here but it doesn’t make sense to me
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TV would have you believe that once someone is identified as a red flag, they simply “stake it out” for a few weeks and then they bust the guy. A real IRS operation is expensive, and it has to justify it’s existence by having a regular series of successful “gets” over the course of a year.
It’s a bunch of accountants going through line after line of revenues, profits and losses, purchase orders, etc. They generally go after mid sized fish. Big enough to be a good bust, and small enough to not have a staff of lawyers that can fight in the courts.
If you had some illegal cash you wanted to launder, just be patient and start three small businesses that are LLC’s and are independent of each other. Laundering cash with one large business is a rookie mistake, and it’s failure is due to being impatient, and being in a hurry.
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