The IRS is Fishing in Vegas

In Soviet Russia, party finds YOU!!

I got a shock today in a story from Las Vegas; the Las Vegas Sun had a story about the IRS and casino employees and it was not about tips or about full and complete reporting of tips.  In the story Ms Benston describes IRS meetings with casino employees.  The IRS is asking casino employees to call the IRS and report people who are gambling with “lots” of money.  The government is casting a net trying to catch people who may have committed crimes to get the money they use for gambling – robbery, embezzlement and of course selling drugs.  The very idea begs the question: What is lots of money?  And how are the employees to know who should be reported?

The answer is simple, they can’t know as there is no objective standard and that means the subjective standards will be the rule.  I would venture a guess that people who are rude, don’t tip or maybe just belong to the wrong political party, race or religion just may qualify to be reported.  Isn’t this the way Stalin’s Communist Russia, Mao’s Communist and Nazi Germany were said to track and catch dissidents and undesirables?  The IRS is not satisfied with the ways casinos are required by law and regulation to report major cash transactions so it is inventing less formal, less legal, but more personal, warm and fuzzy ways to entice people to report on each other.  It is not healthy, nor is it a part of our rule-of-law democratic society.


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August 2010
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