"It goes back to the gold standard, when the Federal Reserve and the currency was based on the price of gold," said Frank Sommerville, a tax lawyer at law firm Weycer, Kaplan, Pulaski & Zuber, and P.C. "When we changed to Federal Reserve Notes, people started saying that what they're receiving is a debt and not taxable income since it's no longer backed by gold."
But don't try to make that argument with the IRS. The agency asserts that U.S. dollars are, of course, taxable and any assertion that they are not is an inaccurate interpretation of the Constitution.
Worried about getting audited? Don't be a prime target. Here's what the IRS looks for and tips to help you avoid getting singled out.
|Baubax jacket sought $20,000 on Kickstarter, but got $9 million|
|This jobs report is very important. Here's why|
|Apple beaten on rumored iPhone 6S feature by an orange|
|Christie's hopes to get $100 million for Modigliani nude|
|You don't know her, but Crystal knows you|