Tis article describes a very important turn of events. I recommend you read it in its entirety – Good As Gold
It is an amazing story about an attempted IRS persecution that seems to have backfired.
Did you know that the United States has two systems of money? We have on the one hand, the Federal Reserve Note debt-money system, and on the other, gold coins that are issued by the U.S. Mint in face value denominations of $5, $10, $25, and $50.
Here’s an excerpt from the article:
In 1985, Ron Paul and other congressmen challenged our country’s currency system, which was monopolized by Federal Reserve Notes (FRNs) — the familiar greenbacks in American wallets. The congressmen successfully pursued the Gold Bullion Coin Act, which required the U.S. government to mint and place gold coins in denominations of $50, $25, $10 and $5 into circulation based on demand. The coins are made of 91.67 percent pure gold.
The interesting point is that now the dollar has two conflicting definitions, one is really a non-definition – it’s whatever the mismanaged Fed note will buy. The other is a concrete definition based on a specified weight of gold. It is such concrete definitions that central banks and legal tender acts are intended to obliterate. The fact is, that since these coins carry a face value denominated in dollars, they are not mere bullion, but LEGAL TENDER.
The Gold Bullion Coin Act mentioned above provides that, A fifty dollar gold coin that is 32.7 millimeters in diameter, weighs 33.931 grams, and contains one troy ounce of fine gold. Therefore, it follows that a dollar is equivalent to one fiftieth of an ounce of fine gold.
If you were to be paid 50 dollars per week in U.S. gold coin that would make your annual income $2,550. The equivalent value in Fed notes at current gold prices would be around $40,000.
The story describes an employer who did just that, he paid his workers in gold coins, which made their earnings fall below the minimum income required to be reported to the IRS for income tax purposes. The IRS brought criminal charges against him and his workers but got not a single conviction. Read the full story by Mike Zigler in Liberty Watch magazine, here.
Beyond Money 
The suggestion has to work, if I pay the state of Utah or 7 eleven money or a restaurant in gold coins, they have to take at face value atleast, however the IRS requires taxation of free services, if I mow your lawn for free or give you a house for free (subject teo rules) I generally have to pay taxes if I win the lottery, so the creditor is suddently receiving not $50 but $1,500 even though only $50 debt is discharged? What if the debtor paid $100 in silver by mistake and the creditor promised to pay him back with $100 platinum coin?
What about silver currency such as quarters, dimes,halfs, nickels,
and how about the nickel and the penny before melt ban in 2005,
they are worth “more” than face value, does this mean that banks have more on the balance sheet and have tax liability, a pre-1982 penny is 3 cents , a nickel 7 cents, so if a bank has thousands?
What about old or worn notes, so if a $10000 note is worth $100000 at fair market value, how can a creditor say well gee he’s only given me $10000 and then the IRS says no he gave you $100000 but then the creditor sues for the remaining $90,000, ?
A loophole indeed!
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Here’s a link to the original text:
http://forums.second-amendment.org/index.php?topic=3494.0;wap2
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A lot of our clients are expressing doubt about the future of the US Dollar and are happy to learn that a self directed IRA allows them to place physical gold coins within it. They are often unaware of the fact that their traditional 401k’s, which do not allow the placement of physical precious metals within it, can be rolled over into a Self Directed IRA if certain qualifications are met. With stories like this, there’s no mystery as to why people want to get their hands on gold.
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Congratulations on him finding a way to screw the IRS. Too bad the lnks don’t work…
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That site seems to have been taken down. If you search and find the article elsewhere, please let me know.
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Every one want to save there wealth physically gold bullion is good choice.Thanks for the great reading, we buy gold coins in a recession. I will pass this on to our Ira clients to read.
gold coins
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Great article, very informative! Thanks.
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Thanks. This suggestion was in an inflammatory “How to Legally Stop Paying Taxes” book I found thirty years ago and discarded somewhere along the way. I never trusted the advice as it seemed to be just a wild hair … it’s good that someone went all the way with it. It will be interesting to see 1) what the Federal Government (IRS and all) do next and 2) whether ANYONE picks up on the story.
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