| Every industry has its bad apples and the car washing | | | | wage they are in violation of that law, but the state |
| industry is no exception. IRS Officials know that many | | | | also loses out on the monies that should have been |
| car wash owners skim cash and under report their | | | | paid in payroll taxes. |
| income, which has prompted the IRS to instruct their | | | | For instance, if a car wash is paying illegal aliens under |
| enrolled agents to look at industry norms and business | | | | the table less than the minimum wage and pocketing |
| ratios to catch tax cheats. | | | | the car wash revenue, the car wash owner makes |
| State Governments which are trying to balance their | | | | tons of money, but the state loses big time. How so |
| own budgets are also aware that many car wash | | | | you ask? |
| owners are cheating on their payroll accounting to | | | | Well, if illegal aliens are only paid $5 per hour under the |
| save payroll expense and/or defraud the state | | | | table and should have been paid $8 per hour, the state |
| governments from the taxes they owe. | | | | loses the payroll taxes, which is a percentage of the |
| California is one state that has been quick to audit the | | | | payroll. Now that many carwashes have been audited |
| books of car wash owners to check their records to | | | | and found to have cheated the state is charging the |
| see if they are paying the minimum wages and if they | | | | owners with a crime and making them pay the back |
| are hiring illegal aliens. If they are not paying minimum | | | | taxes. |