Employer Faces Life Imprisonment For Paying Workers In Gold, Silver

Call it what you will, but I gotta hand it to this guy...

Source

A self-made entrepreneur, Kahre, 48, paid his workers in gold and silver coin, and said they could go by the coins' face value -- rather than the much higher market value of their precious metal content -- for federal tax purposes. He did not withhold taxes from their wages, and he provided the same payroll system to 35 outside clients, which were other local businesses.

Isn't that Illegal, you might ask?.....Well.....

Kahre contends his workers had agreed to be independent contractors, so he did not have to withhold taxes for them. His six businesses are in the trades of painting, drywall, tiling, plumbing, heating-cooling and electrical work. Further, the $50 gold coins and the silver dollars Kahre used for payroll are designated by Congress as legal tender, so people are entitled to value them at their stamped denominations, he also contends. Taken at face value, each defendant's annual coin income placed him below the threshold for filing a federal tax return.

Cohan described Kahre's payroll system as a "boycott of the Federal Reserve." But when the lawyer attempted to elaborate on Kahre's view that the nation has debased its paper currency by abandoning its former gold standard, Ezra added, "We're not here to convince the jury that the ... (U.S.) monetary system belongs to an international cabal."

Would you take gold and silver coins in lieu of a paycheck? I know that I would!

Edit for SP




[edit on 26-5-2009 by RolandBrichter]

i HOPE this goes to the SUPREME court.........

also i am skeptical of the current nominee....i am skeptical of anything coming out of washington in the last 9 years...period.....why shouldn't a rationale person be?

Originally posted by RolandBrichter

A self-made entrepreneur, Kahre, 48, paid his workers in gold and silver coin, and said they could go by the coins' face value -- rather than the much higher market value of their precious metal content -- for federal tax purposes.

A friend of mine of a certain ethnicity was telling me that this is a regular practice in his community...easier to hide capitol gains than income.

Brilliant, I say!

We should be able to pay anyone - any way that we like.
They will be taxing barter next.

It's time to start thinking for ourselves.
Being slaves to a corrupt system has had its day.

I don't get this at all. I thought if a person was paid as an independent contractor they were responsible for filing their own taxes. I have done work like this in the past and the employer filed out a form stating I was responsible for ALL necessary taxes and fees.

I don't see where they have any case at all. Typical of the government, anything we do outside of their system they find a way to prosecute.

reply to post by redhead57


Yup, your employer 1099 's you and then you are responsible for paying the taxes on the gross income minus legal deductions. I worked this way in sales many times. They are going to have one hell of a time with this case. You are supposed to pay quarterly so maybe that is the problem here.

Zindo

[edit on 5/26/2009 by ZindoDoone]

So the guy pays the independent contractors in US Treasury (Mint) issue gold & silver coinage with a clear denomination on them.

Until the ind. Contractor sells that coin, it is still only "legally" worth the value printed into it.

Though I could see a "fraud" situation IF the guy paid more than face value for the coinage that he paid his employees with, then there is a trail of the value of the coinage, and it would be higher than what the face value is.

But it appears from the article that he asked the IRS how to value the coinage & never got a reply??

There has to be more to this than just the payroll issue, there is the homes under the GF's name & whether he paid his personal & business taxes apparently.

Be interesting to see how this one goes, esp under this Admin

So if the contractor did $12,000 worth of labor...he was paid 6 gold coins which have a face value of $300 (6 x $50). (but are worth $946 each) That is what the IRS is upset about. Since congress declares them legal tender at $50 that is the only amount they can be taxed at isn't it?

They want to tax the $12,000worth of labor, not the $600.

It turns out this guy has caused trouble for the IRS before. You can not mess with the IRS

Of course you can mess with the IRS. They have their courts to express your opinion about the taxes paid and not paid or if its unfair. The chances are good that perhaps you can get away with it as I don't believe there is anything in their books saying anything about being paid in gold or silver. At least its a try and people will find out if it works or not.

Originally posted by Missing Blue Sky
It turns out this guy has caused trouble for the IRS before. You can not mess with the IRS

Well, if more people would mess with the IRS, then things might change...

Hmmm.... Tax receipts are reported to be down around 40% so far this year...think anyone is "messing with the IRS"?....

Im an high quality house painter and I would LOVE to work for this guy.

IF he happens to stumble on this thread give me a shout as I have homes up in Park City Utah that were in Better Homes & Gardens after I painted them........no joke.

[edit on 26-5-2009 by theRiverGoddess]

Isn't it coincidental, that anyone that messes with the government or the IRS, are always claimed to be guilty of historical tax evasion???

Just a trend I have been noticing recently..

Originally posted by Brothers
I don't believe there is anything in their books saying anything about being paid in gold or silver. At least its a try and people will find out if it works or not.

My accountant says that, at least under Canadian tax law, they'd turn around and nail you for dodging the capital gains tax...at very least...and they'd have no sense of humour about the issue at all.

reply to post by Brothers


You've been to these IRS courts? I have, and they are anything BUT fair. Your guilty till you prove them so incompetent that it reeks of stupidity. Then maybe they leave you alone till the next time some idiot working for them needs a promotion and suddenly your case is reopened and they deny that you won the case. Oh ya. they are fair.

Zindo

reply to post by RolandBrichter


brilliant, simply brilliant

someone should create a movement based around doing this sort of thing!

wait wait . . . so where do I buy these face value coins?


The man had a good idea, and the IRS is pissed because they did not get a big cut.

Tough titty said the kitty.

reply to post by xxpigxx


www.cmi-gold-silver.com...

Are we insane here? I work for an individual and I DO NOT PAY INCOME TAXES PERIOD!!! I haven't for the past three years since I "untaxed" myself. Find the book "Good-bye April 15th".

There are more than 100 million people who do not pay income taxes. The Supreme Court has stated repeatedly that your labor is your personal property and you may "trade" it for whatever you wish. Just like trading baseball cards for anything else.

IT IS NON-TAXABLE!!!

The IRS is the collection agency for the Federal Resrve and BOTH are PRIVATE CORPORATIONS, they can not make law and they can not enforce law on ANY "American" Citizen. They can however get the Treasury to come after you "if" you admit you are a "U.S." citizen.

We are AMERICANS, there is a difference and it is recognized by all courts of law. I have responded to every threatening letter the IRS sent me, they leave me alone now as I have informed them they are incorrect. As have 100 million other people. Watch the documentary, "Freedom to Fascism" by Aaron Russo. Go to www.restoretherepublic.com and read the tax laws there. Please people WAKE UP!!!

reply to post by spinkyboo

They will be taxing barter next.

Don't shoot the messenger please...

Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services received in exchange for goods or services you provide must be included in income in the year received.

link - IRS

peace

Originally posted by silo13
reply to post by spinkyboo

 

They will be taxing barter next.

Don't shoot the messenger please...

Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services received in exchange for goods or services you provide must be included in income in the year received.

link - IRS

peace

I would say 0 is a fair market value lol.

Plumber does 200 dollars worth of work, the dentist provides 200 dollars worth of work the market values cancel each other out.

The IRS wants to tax the 400 dollars of course but that is assuming your stupid enough to report it.

Even worse yet you made no money and they want money. Send them a bushel of hay instead lol.

So if you mow your neighbors lawn while he's on vacation and the neighbor does the same for you according to this it is taxable fair market value income. So why not send them the grass clipping as payment?

Edit: Here's an idea lol, start a class action lawsuit against all federal reserve employees for tax evasion. Or at least the ones we can prove fall into this category. Hey if the IRS can sue/convict people of tax evasion why can't we?

[edit on 27-5-2009 by Darthorious]