I am not getting it, it still doesn't work. there is inherent value in what you are getting from a second party. What ever the form of the value received, it is taxable. the fact that you don't consider it valid currency is irrelevant. I get paid in USD, EURO, British Pounds, Canadian Dollars, to name a few. I have also been paid in property for my services. Under all scenarios, the money I was paid, regardless of denomination and form is taxable.

I am just getting a bit frustrated with the lack of authority for this position. I can't find an IRS code section, regulation, or case to support this position. I know you all believe this opinion, and in David, but unless supported by the tax laws, it just doesn't work. David could apply for a PLR present his position to the IRS, and have them rule on it. At least with that the IRS would provide their logic and analysis. The only issue is the IRS will not opine if they believe the argument is not frivolous, and based on some of the case law I have read, that may actually be the case.