"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.
|United Airlines reaches settlement with passenger who was dragged off plane|
|NAFTA: Trump plays a risky game with $1.2 trillion in trade|
|Exclusive: Federal probe of Fox News expands|
|Toyota recalls 228,000 Tacoma trucks|
|Trump's tax plan could cost an estimated $5.5 trillion|