^^^ thanks for helping to convey in graphic terms the degree of fundamental change which the exotic dancing industry has experienced since the 90's. One of my fondest memories of that period was the night that a very famous tech company founder ... and 6 business associates ... walked into a very small club in southern Michigan. The company had just been sold / gone public, and this group of guys easily spent and tipped a total of $30,000 between them ... on about a dozen dancers ! I earned more money (after taxes) that one night than I could earn in a solid month of dancing today.
But you are absolutely correct about the degree of 'automatic financial reporting' that now goes on behind the scenes. In many states, any 'cash' transaction over $3,000 will generate a report to the IRS. Same with the purchase of $1,000 or more in money orders within the same day. Every car / motorcycle / boat / snowmobile / real estate title registered automatically prompts a state agency to generate a report of the 'sale' to the IRS. Every college tuition payment or grant / loan also generates a report to the IRS. It's also left up to the discretion of bank tellers to generate IRS reports of 'suspicious' cash transactions i.e. a young girl coming into the bank 2-3 times a week making $1000+ cash deposits in small bills.
And beyond that, if the IRS has a reason to go snooping, it takes all of 5 minutes worth of computerized financial network inquiry to turn up a credit report listing every bank account, every credit card account, every outstanding loan, etc. It then might require 5 extra minutes to come up with investment / retirement account information, (corporate) apartment rent or owned home property tax information etc. The IRS computers might then require another 5 minutes to cross-check past tax returns, average cost of living for the person's zip code area, average earnings for people with the same 'occupation code' in the same zip code area, and who knows what else in the way of statistical benchmark comparisons. If the results 'wave a red flag' ... even if the results are based on accurate income reporting ... an audit will undoubtedly follow.



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