What makes you think the operators are giving correct numbers to the IRS, or that the IRS would necessarily detect something like that on a fairly small scale?

What makes you think the operators are giving correct numbers to the IRS, or that the IRS would necessarily detect something like that on a fairly small scale? (I have no idea how any of this works, but I would assume that if they're willing to defraud their own customers they're probably not acting entirely above board on the associated tax paperwork either.)