"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.
|Sears announces it's closing at least 50 stores|
|Premarkets: 6 things to know before the open|
|Sports Authority faces possible bankruptcy|
|The Twitter disaster shows no signs of letting up|
|Why investors are freaking out over European banks (again)|