Filing 2018 Taxes Advice

[lorne]

Congress is empowered "[t]o coin Money, regulate the value thereof, and of foreign coin, and fix the Standard of weights and measures." U.S. Const. Art. I, § 8, cl. 5. Article I, Section 10 of the Constitution prohibits the states from declaring as legal tender anything other than gold or silver, but does not limit Congress' power to declare the form of legal tender. See 31 U.S.C. § 5103; 12 U.S.C. § 411. In United States v. Rifen, 577 F.2d 1111 (8 th Cir. 1978), the court affirmed a conviction for willfully failing to file a return, rejecting the argument that Federal Reserve Notes are not subject to taxation. "Congress has declared Federal Reserve notes legal tender . . . and federal reserve notes are taxable dollars." Id. at 1112. The courts have rejected this argument on numerous occasions.

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Contention: U.S. notes are not income.

Some assert that U.S. notes are not taxable income under the Revenue Acts of Congress; that a worker who redeems a paycheck in U.S. notes (lawful money) owes no federal tax on that income.

The Law:

The U.S. Supreme court has said “…taxation on income was [is] in its nature an excise…” and excise taxes can be avoided by avoiding the privileged activity - endorsing private credit of the FED.

Relevant Case Law:

United States v. Rickman, 638 F.2d 182, 184 (10 th Cir. 1980) - Court affirms "that Federal Reserve Notes are legal tender and are redeemable in lawful money."

Milam v. United States, Appellees, 524 F.2d 629 (9th Cir. 1974) - Holder of $50 Federal Reserve Note sought to require Federal Reserve board to redeem the note in gold or silver. Court affirms that "Appellant is entitled to redeem his note, but not in precious metal."
https://law.justia.com/cases/federal...24/629/430631/

United States v. Condo, 741 F.2d 238, 239 (9 th Cir. 1984) - Taxpayer argued that receipt of Federal Reserve Notes did not constitute "income", the bass ackwards argument of Contention above. Of course FRNs are taxable. George Mercer wrote a letter to taxpayer Armen Condo who was highly unreceptive, continued using FRNs, and the court upheld his criminal conviction.
https://famguardian.org/Publications...ondoLetter.htm

Conclusion: True