I like their customer service, prices & timeliness. Am I wrong to want to know if they pay taxes so I can continue to support their business? Or am I being a flipping nazi for even thinking these things?
I suppose I can start asking for a receipt.
I could also find out if it's cash only for their haircuts only & not for other services.
2007-03-17 12:27:00 · 16 answers · asked by m&m 2 in Business & Finance ➔ Taxes ➔ United States
I ran a small store for a while, and I only took cash. It was easier, less expensive, and I didn't have to worry about fraud. I wrote out receipts by hand, so I didn't always give one- especially if the customer was in a hurry. I paid my taxes. I think it would be very hard to have s tore front and business license and get away with not paying taxes. Just ask for a receipt next time and assume the best unless you have good reason not to.
2007-03-17 12:37:21 · answer #1 · answered by Elaine 5 · 2⤊ 0⤋
Any registered business pays taxes. It is required by law, otherwise, your hairdresser's shop would have been closed by now byt the tax office. Your hairdresser probably does not offer a receipt because you do not ask for it. Majority of hairdressers don't offer receipts.
The only people who tend to need receipts from hairdressers are usually models because they can get a tax-deduction or tax relief for it, because it is one of the expenses of their career and can legally get deductions for it.
Businesses have to pay a premium or fee to credit card companies everytime a customer uses a credit card. If customers are only getting $10 cuts, then the cost to a small business to the credit card company can be very high. I can sort of understand why your hairdresser insists on cash only basis.
Cashflow is key is a business wants to stay a float. I think your hairdresser is very smart to offer cash only services.
2007-03-17 12:39:37 · answer #2 · answered by Muga Wa Kabbz 5 · 2⤊ 0⤋
Lots of small businesses don't want the extra costs of taking credit cards, or the aggravation of chasing down people who bounce checks to them. And receipts can be important to the customer for a couple reasons - if what they're paying for is tax deductible, or if there's a chance they might need to return the item - neither of these situations would apply to your haircut. So it's possible that the hairdresser is paying taxes honestly, including on his/her tips, and there's nothing illegal going on.
It's also possible that they're evading taxes on some or all of their income.
Your call whether you want to patronize them. You could always ask if they stay totally legal on taxes - but I'm not sure just how you'd start that conversation.
2007-03-17 14:40:16 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
I think your suspicions are right but you would be surprised how common this is. Also, your situation sounds slightly different.
$100 says that this business is not paying all the taxes it should. Cash only with no receipt is tantamount to hiding income. If there is no paper record of it, then it never occurred.
The thing is that this sort of thing happens all the time. Your local gas station is primarily a cash business and I can basically guarantee you that it isnt reporting all its income. Plus half the people who work there are probably off the books. Do you really think that waitresses are reporting every cent in tips they make? Doubt it.
The thing that is really weird about the business you mentioned is that they actually flaunt their scheme. If you ask for a receipt from your gas station for car maintenance work, they will definitely give you one. If you pay a tip via a credit card you will definitely get a receipt as well. Your place actually refuses to give a cash receipt. That's just wrong.
One day the IRS will catch your salon. Sooner or later the IRS will discover them or, and this is a real possibility, if someone liked you got annoyed enough at them, you could tip the IRS and get a financial reward as a whistle blower.
2007-03-17 13:06:54 · answer #4 · answered by sothere! 3 · 0⤊ 4⤋
The reason for the cash business is because they are not reporting all of their sales, and therefore would save on taxes (and self-employment tax if its a sole proprietorship). Lots of places don't like to accept credit cards because they would have to pay credit card fees. So they would not be collecting their total amount of the sale since a % goes to the credit card company. Its very common for places not to accept personal checks for obvious reasons. Too many times the check will bounce, and no one wants to hunt down people for collection.
Cash is the easiest method of collection, and there is also no trace. It also ends up cheaper for the customer. If this bothers you, instead of saying something, I would just find another place to go. But keep in mind that if you have to pay by check or credit card, you will most likely pay more because they'll charge you tax. If you just want a receipt, ask for one. They will give you one.
2007-03-17 13:33:08 · answer #5 · answered by tma 6 · 0⤊ 2⤋
well checks and credit cards all cost money for a business to process. You figue you have to pay a lease on the card readers , and then you also have to pay a % of the total bill. And checks are always nice when someone writes bad ones then you are screwed holding the bag.
The may also want cash so that you will be more likely to tip your hairdresser.
2007-03-17 12:38:38 · answer #6 · answered by Anonymous · 3⤊ 0⤋
I have come across one that would not accept anything but cash,however I did only have my credit card with me, so I continued on to another location from the same franchise,where they were happy to accept my credit card. It saved me a trip to the bank for cash and I felt better about it. It is your choice, and do not feel uncomfortable. There are other shops that will accommodate you, without having to raise any questions.
2007-03-17 12:39:06 · answer #7 · answered by pooterilgatto 7 · 1⤊ 0⤋
Now that I think of it, I have never expected a receipt from a hair salon.
If a small shop or restaurant asked for cash payments only, I would comply and not worry about if they are straight on their taxes.
2007-03-17 13:12:47 · answer #8 · answered by ninasgramma 7 · 0⤊ 1⤋
Ask for a receipt,and kuddos for being aware of the problems that do exist with many businesses.Any one who avoids paying the tax man will eventually get caught.I am not sure what the laws are for hair salons,maybe they use an average if they are an established shop.Good luck in your ventures and god bless you for having standards.
2007-03-17 12:37:53 · answer #9 · answered by jnwmom 4 · 1⤊ 1⤋
The IRS knows how much a business of that size, location, etc. should be taking in, both in regular fees and tips. If they claim much less, they can look forward to a visit by an agent, and not as a customer.
2007-03-17 12:51:02 · answer #10 · answered by gosh137 6 · 1⤊ 0⤋