The receipt of money is not the taxable event, it is the endorsement or non-endorsement that is the taxable event.
Quoting: Anonymous Coward 692708Ah. I thought that Americans were taxed on "income from whatever source derived", regardless of the form that income might take. Be it income from barter, be it dollars (Federal Reserve) or dollars (Lawful Money) or euros or Thai baht or whatever you care to name, it needs to be declared. That's the impression I always got.
Since the majority accept endorsement of fiat currency it is presumed everyone who touches any fiat currency endorses its use as fiat currency.
I demand otherwise.
Quoting: Anonymous Coward 692708I'm sure the IRS will humbly bow to your demands. Once they notice, anyway.
Meanwhile I've been researching this issue a little for myself: found this.
[
link to en.wikipedia.org]
"The argument that Federal reserve notes are not taxable income when paid to a taxpayer because the notes are not gold and silver and may not be redeemed for gold and silver, and variations of this argument, have been officially identified as legally frivolous Federal tax return positions for purposes of the $5,000 frivolous tax return penalty imposed under Internal Revenue Code section 6702(a)."
This distinction between Federal Reserve and 'lawful money' does seem to be a variant of that argument. So you are wise to be very careful in your record keeping, as you described earlier: an IRS inspector who is not as learned in the law as yourself might well impose a large fine on you. Not that you'll have any problem with that, since you can pay that fine with worthless Federal Reserve notes: the IRS doesn't mind if they haven't been stamped on the back.
