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Ansuz07 t1_j24bc5m wrote

Reply to comment by CFDietCoke in Eli5: Why are matress and laundromat stores often used for laundering money by Jojojoost010

True, but if your laundromat is showing much higher profitability than other laundromats in your area, the IRS is going to notice that and that could flag you for an audit. If you get audited, they will look at your utility consumption and compare it to industry standards.

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CFDietCoke t1_j24bmtc wrote

No they won't. You are trying to sound clever by thinking you "figured out a loophole" that disproves my statement.

Source: Owned 2 laundromats in my life. Was audited once. Never had to provide a utility report.

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Ansuz07 t1_j24bw8o wrote

I have two IRS agents in my family. If you think they won't look at supporting documentation if they don't think the numbers make sense, you are sorely mistaken.

Edit: They blocked me so I can't respond, but yes - they will absolutely look at utility bills if they think that cost to serve doesn't line up with the revenues reported.

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