Only gold-based money is taxable
Only gold-based money is taxable
Since U.S. dollars -- also known as Federal Reserve Notes -- are no longer backed by gold or silver, some folks believe they are un-Constitutional. As a result, they refuse to report the income they've received as U.S. currency.

"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.


By Blake Ellis @CNNMoney - Last updated April 06 2012: 8:09 PM ET
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