There are legitimate reasons:
She is a sole proprietor, and doesn't want to give out her last name.
She doesn't participate in the banking system for various reasons, and hands the check to a third party.
She may have had an unpleasant audit experience with the tax authorities and wants to maintain a smaller record footprint.
She may have an abusive spouse or some other personal situation where she values her anonymity.
I wouldn't jump the gun and assume that this person is avoiding taxes, etc.
Barbers are usually licensed professions.
Since it's generally a cash business, they tend to get audited more often by the tax authorities.
That said, I wouldn't pay her with a check -- you have no idea who is actually cashing the check, and you could run into issues with unknown third parties misusing your account information.
money.stackexchange.com/users/1288/duffbeer703
There are benefits associated with a cash only business (the link states a few).
However checks made out to "cash"
don't reap those benefits listed.
For anyone on SE to say your barber hides revenue from the IRS would just be speculation.
With that said there are a great number of disadvantages for a cash only business.
And from my experience, a business that goes out of their way to take cash only can be a little suspicious.
Luckily you are not committing any crimes or fraud by paying her cash.
money.stackexchange.com/users/6564/Kirill Fuchs
To put a positive spin on the whole thing, maybe it's a small family shop, and having the check made out to "cash" means that your barber can hand it to someone else without the need to countersign.
Or maybe his last name is "Cash"
- there was a pretty famous singer who fit that description.
Either way, it's not your place to nanny his finances.
money.stackexchange.com/users/969/warren
They're hiding income.
The IRS is a likely candidate for who they are hiding it from but not the only option.
Another possibility that comes to mind is someone who had a judgment against them--a check made out to "cash" could be handled by someone else and thus not ever appear in their bank accounts.
money.stackexchange.com/users/1884/Loren Pechtel
If the business owner doesn't want you to pay him directly, the only reason I can think of is breaking a law.
It can be because the business doesn't legally exists, or because the barber wants to evade taxes, or because he doesn't pay his child support or doesn't want his income to be apparent to his debtors in a bankruptcy proceedings.
Either way, stinks.
money.stackexchange.com/users/2998/littleadv
My barber accepts only cash or checks made out to "Cash".  Is there a likely legitimate reason she might want the checks made out to "Cash"?  Or am I helping her hide her revenue from the IRS?
A merchant requests that checks be made out to "Cash". Should I be suspicious?
money.stackexchange.com
<united-states><taxes><small-business><check><fraud>
money.stackexchange.com/questions/15625
money.stackexchange.com/users/6203/Jeremy Stein
It means that she hands her checks to a third party. She might have a judgment against her and can't hold a bank account. It could also mean that the business doesn't legally exist or because they want to evade taxes. You are not committing a crime by paying in cash. People may presume the only reason to ask for a check made to cash is that they are breaking the law e.g. to evade taxes, to not pay child support or hide income in bankruptcy proceedings or have had a judgement made against them. It could be the simplest of reasons such as them not having a bank account. They may have had bad experience with the tax authorities so want to maintain a smaller record footprint or there may be a genuine reason, such as they have an abusive spouse or other personal situation where anonymity is necessary or simply that as a small shop having the check made out to cash means they can just hand to someone else without countersigning. In any case, you are not committing any crime or fraud by paying in cash.
It could be the simplest of reasons such as them not having a bank account, so needing to hand to a third party. People may presume the only reason is that they are breaking the law e.g. to evade taxes, to not pay child support or hide income in bankruptcy proceedings or have had a judgement made against them. They may have had bad experience with the tax authorities so want to maintain a smaller record footprint or There may be a genuine reason, such as they have an abusive spouse or other personal situation where anonymity is necessary or simply that as a small shop having the check made out to cash means they can just hand to someone else without countersigning. In any case, you are not committing any crime or fraud by paying in cash.