IRS Visits Vegas
The Internal Revenue Service is cracking down on Las Vegas nightclubs – a cash-heavy system that hasn’t done the best job of hiding the money in its pockets.
Las Vegas wouldn’t be the same without its velvet ropes and Paris Hilton appearances, but the feds are getting fed up with not getting a share of the booty. IRS and other law enforcement authorities took action February 20th, raiding the Pure nightclub and Pure Management Group and confiscating several computers, according to a column in the Las Vegas Review-Journal.
"Pure has guys at the door making more than the president," one source told the paper. Sources said doormen at several clubs clear $8,000 to $10,000 per night before splitting up the tips. That adds up to $400,000 to $500,000 a year.
Another source said, "If people have been waiting all night, they’re not going to go somewhere else and start over. … Club employees, usually the size of big league umpires, will go down the line and fish for people who really want to get in. The line guy might get $200, but now everyone in the group is still going to have to pay a $30 to $40 cover charges."
And once inside, it’s bottle service. A bottle of liquor at a Vegas club runs between $350 to $650, according to the Review-Journal.
The paper said grumblings about the Vegas nightclub gouging have been growing louder.