Okla-homey
12/21/2007, 01:20 PM
Some smarty-pants somewhere (I forgot where) pays his contract employees with recently minted gold coins. He buys them, then pays his folks with them.
Here's the funny part. A 2007 US five dollar gold piece sells for $99 on the retail market
Thus, smarty-pants pays a $1000-a-week contractor in cash with ten of these coins. Because a person who employs independednt contractors is not required to do any withholding, then, said contractor claims on his taxes he only earned $50 because that is the face value of the coins in which he was paid.
The IRS is not amused.
Here's the funny part. A 2007 US five dollar gold piece sells for $99 on the retail market
Thus, smarty-pants pays a $1000-a-week contractor in cash with ten of these coins. Because a person who employs independednt contractors is not required to do any withholding, then, said contractor claims on his taxes he only earned $50 because that is the face value of the coins in which he was paid.
The IRS is not amused.