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Using Foursquare to Detect Tax Evasion / Money Laundering

diegobasch.com

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Re: Using Foursquare to Detect Tax Evasion / Money Laundering

#21

Post by larrys »

fleitz wrote: post #17
staunch wrote: post #10

Related question. Am I wrong in assuming virtually every business that has a "cash only" policy does so to facilitate tax fraud? I know there are legit exceptions, but isn't this the main reason they do it?

Cash can be spent immediately, CC receipts not so much. In the case of CC you'll get a payment 30 days later, so in VISA vs. cash, you're not getting the interest on the money, if you need to use the money you'll have to pay your bank interest, and you'll pay a processing fee on top of it. About the only advantage CC has is that it's difficult for employees to steal from the register, so instead they steal the magstr…

"In the case of VISA you'll get a payment 30 days later, so in VISA vs. cash, you're not getting the interest on the money,"

Wha? I get my Visa money within a day or two.

Re: Using Foursquare to Detect Tax Evasion / Money Laundering

#22

Post by fleitz »

Statistically it's horrible, however, it's probably good enough that some politician will make the IRS do this and now businesses will concern themselves with ensuring they have the right number of checkins.

Luckily it should be a great business to ensure that local businesses get the right number of checkins.

Re: Using Foursquare to Detect Tax Evasion / Money Laundering

#24

Post by diego »

mark242 wrote: post #18
diego wrote: post #9

Earlier quoted context omitted.

The good thing is that it's not the only information available, just one more signal. And what's wrong with trying it out only in the Bay Area and New York, for example?

"Hey everyone! The IRS is using your check-in data to police the places that you frequent!" I'm sure nothing bad at all would happen upon people reading that headline.

Well, perhaps it's already happening. After all, you're voluntarily publishing your location in real-time to the world when you check into Foursquare.

I find it interesting that we do this naturally and without thinking twice about it. Ten years ago the idea might have seemed preposterous.

Re: Using Foursquare to Detect Tax Evasion / Money Laundering

#25

Post by larrys »

ChuckMcM wrote: post #15
staunch wrote: post #10

Related question. Am I wrong in assuming virtually every business that has a "cash only" policy does so to facilitate tax fraud? I know there are legit exceptions, but isn't this the main reason they do it?

You would be wrong in that assumption. Some businesses don't like paying the additional fees charged by banks when you use a credit card, they can be up to 8.5% according to a friend of mine that runs a locksmith. He would rather give 8.5% more service to the folks who come in the door. He has an ATM on site that will let you get a cash advance on your credit card if all you brought was plastic. It has a $3 transacti…

Fees are nowhere 8.5% I've never heard that and have had a merchant account since the 80's at several businesses.

Not taking credit cards will cost you business in a retail location.

Re: Using Foursquare to Detect Tax Evasion / Money Laundering

#26

Post by mikeash »

ChuckMcM wrote: post #15
staunch wrote: post #10

Related question. Am I wrong in assuming virtually every business that has a "cash only" policy does so to facilitate tax fraud? I know there are legit exceptions, but isn't this the main reason they do it?

You would be wrong in that assumption. Some businesses don't like paying the additional fees charged by banks when you use a credit card, they can be up to 8.5% according to a friend of mine that runs a locksmith. He would rather give 8.5% more service to the folks who come in the door. He has an ATM on site that will let you get a cash advance on your credit card if all you brought was plastic. It has a $3 transacti…

Your friend's rates seem a bit crazy. Square charges under 3%, and a dedicated merchant account can be less still.

Re: Using Foursquare to Detect Tax Evasion / Money Laundering

#27

Post by xmmx »

tldr: just because lots of people use foursquare there should be a direct correlation between check-in's and revenue; this method should be used by the IRS when collecting taxes.

Are you serious? This is no way front page HN worthy. This is the worst thing I've read since that "wake up at 5am and eat a slice of ham to start my metabolism" trash.

Re: Using Foursquare to Detect Tax Evasion / Money Laundering

#28

Post by heretohelp »

DanielBMarkham wrote: post #19

You can slice this the other way also: using check-ins for a particular person to track where they visit. If their reported income is low, yet they check-in regularly at expensive restaurants and travel the globe, you've probably got a tax cheat in there somewhere or another. Seriously, I have no idea why we discuss some of this stuff. It only serves to give ammo for other people to monitor and control us in ways the…

I had the same reaction, this stuff makes me queasy.

I don't like tax cheats, but a tax cheat isn't going to imprison me for having the wrong opinions.

Re: Using Foursquare to Detect Tax Evasion / Money Laundering

#29

Post by diego »

mark242 wrote: post #20
diego wrote: post #16

Earlier quoted context omitted.

Probably the majority of those check-ins happened in the past year. Also, look at a Starbucks near where I live: https://developer.foursquare.com/docs/explore#req=venues/49f... Over 10k check-ins, and I doubt it has 2 million visitors per year. Please elaborate on why you believe this is a laughable idea just from a numerical standpoint.

OMFG Starbucks reported $3B in revenue this past quarter, but this store only has 10k checkins! Send in the G-Men, they must be laundering money! Come on, seriously.

That's nonsense. There are 20k Starbucks in the world, this is one.

http://en.wikipedia.org/wiki/Starbucks

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