“The IRS is finally cracking down on the way strip clubs give $10 to $100 in bonuses to taxi and limo drivers for every customer they deliver. In a month or two, the IRS is expected to demand that strip clubs give 1099 forms to drivers.” That’s how this article by noted columnist Doug Elfman for the Las Vegas Review-Journal begins.
Mr. Elfman writes:
Here’s how part of the quid pro quo works:
Various hotel doormen ask people in taxi lines where they’re headed. Doormen aren’t necessarily interested in tourists’ sunny day. They’re also trying to find out which tourists want to go to a strip club. When a doorman finds guys looking for naked ladies, they may pull them out of a taxi line and say, “Let me put you in this free limo.”
Cabdrivers hate that, because it takes strip club cash out of their pockets.
Then that limo driver takes his riders to a strip club, gets paid by the club an extra $10 to $100 per rider, then heads back to the doorman and gives him as much as one-fourth to half of that strip club cash.
And you thought your taxi driver was just being friendly. Maybe you should stay in Vegas. Until you figure it out, that is.