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ARTICLE · 18 AUGUST 2017

IRS And States Crack Down On POS Systems: Zapper Software

A good point of sale ("POS") system is critical for any business engaged in sales to the public and having one in place goes a long way to ensuring that revenue and profits are being reported...

United StatesTax

A good point of sale ("POS") system is critical for any business engaged in sales to the public and having one in place goes a long way to ensuring that revenue and profits are being reported properly to federal,  state and local tax authorities.  Along with the proliferation of companies who create the software that drive POS systems, however, is a dubious technology known as revenue suppression software ("RSS") that is also sold as an add-on to the basic POS system.

RSS programs, also known as "zappers", are used to delete some or all of a restaurant's cash transactions and then reconcile the books of the business.  Unlike voiding sales or comping meals from time to time that would appear on a report as a zero dollar transaction, a restaurant owner, for example, can use the zapper software to delete entire transactions from the day's receipts and exclude that information completely from financial reports. The result is that the restaurant owner reports less revenue

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