I never heard about this particular case before today .
But I get it.
Wow.
Why didn't I think of this ? ? ?
This guy gets a huge atta-boy from me.
Here is what he did:
He has a family business.
Instead of paying his employees in paychecks- he hands them a U.S. Government issued gold coin.
The United States Mint Coins and Medals Program
2012-Buffalo-Bullion-obv_180x180.JPG
Now, while it is true that an ounce of gold might be hovering around $1700 right now, the FACE VALUE of the U.S. Gold Coin is stamped $50.
So the person RECEIVING the coin claims, on his TAXES, that he received $50 in income.
And, of course, after receving 50 of those coins over the course of the year, the person has gotten an INCOME OF $2500 ($50 X 50= $2,500) in FACE VALUE over the course of the year, and now looks at the IRS tables, and says he doesn't have to file an income tax return, because he only made $ 2,500 over the entire year.
(50 X $1700 CONTENT value = $85,000 WORTH of income, vs. $50 X $50 FACE value, $2,500 FACE VALUE.)
IRS takes him to court.
His lawyer puts three different accountants on the witness stand, and asks them "Which value do you use to calculate the taxes owed- the U.S. MINT applied FACE value, or the unsold net-content GOLD ounces VALUE?" All three accountants say "I don't know, I'll have to go do some research and get back to you." (P.S.- there is no law which tells you which to use).
So laywer says..."See Jury- even accountant tax experts don't know- so how can you expect a simple citizen from doing anything other than the common sense thing- if the U.S. Mint put on it that it was worth $50, who am I to claim anything OTHER than that?
And the jury aquits the guy of IRS tax evasion charges.
Interesting.
http://www.rapidtrends.com/robert-ka...e-irs-and-doj/
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