"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.
|Wells Fargo's wage theft problem|
|U.S.: Wells Fargo illegally repossessed 413 service members' cars|
|Ferrari reveals fastest convertible ever, and a super-fast family car|
|Home Depot pulls Scary Peeper Creeper from stores in Canada after complaints|
|Costco's new Visa card is off to a hot start|