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Anonymous Newspaper Commenters Subpoenaed In Tax Case

skuzzlebutt writes "In a federal tax case reported in the Las Vegas Review Journal last week, a local businessman has been paying his employees in gold coins instead of cash or ACH, and has reportedly told them that they can only be taxed on the face value of the coinage — not the much higher market value of the metal. The United States disagreed, and brought him up on 57 counts of income tax evasion, tax fraud and criminal conspiracy. The non-authenticated comments section of the original article brought a lot of supporters out of the woodwork, including a few who thought the jury should be hung (literally, procedurally, or figuratively ... pick one). In response, the prosecution has subpoenaed the names of the anonymous commenters, citing fears of jury safety. Or something. The obvious questions of privacy and protected speech aside, for the folks that support the defendant (the newspaper is fighting the subpoena), this also brings back into the spotlight the troll-empowering nature of pseudo-anonymous, non-authenticated boards. If they want to find you, they will; is anonymous commenting still worth it, or is it just too risky for the board owners?"

394 comments

  1. i'll be the first to say.. by Anonymous Coward · · Score: 5, Funny

    ..what a terrible summary

    1. Re:i'll be the first to say.. by cml4524 · · Score: 5, Insightful

      True, but I don't understand why this is such a big deal. You could never mail anonymous letters threatening people without triggering an investigation, why do people think that when they go online they can threaten people and not suffer consequences?

    2. Re:i'll be the first to say.. by Anonymous Coward · · Score: 0

      because words on the internet have no consequence?

    3. Re:i'll be the first to say.. by JustOK · · Score: 1

      cuz it's true?

      --
      rewriting history since 2109
    4. Re:i'll be the first to say.. by GeorgeStone22 · · Score: 5, Insightful

      Because they can? I mean seriously, how often does someone actually get called out on abuse over the internet. If I go to someones blogspot and tell them I want to kill them. There will be no action taken. It's not worth the effort and it's an empty threat like 99.99999% of threats on the internet. On the internet your average 120lb nerd can be a 300lb UFC fighting bear wrangler.

    5. Re:i'll be the first to say.. by morgan_greywolf · · Score: 1

      Agreed. ACH == Automated Clearing House, which is what most people would just call 'direct deposit'. Furthermore, the big ideas should have been at the top of the summary, with the detail about the case down into the paragraphs.

      I know this and I've never had one single journalism class, albeit I did take the required writing and composition classes in college.

      Anyway, this just goes to show that for those that want true anonymity need to employ something that like that darknet technology in yesterday's articles. (Go find it yourself ;).

    6. Re:i'll be the first to say.. by Anonymous Coward · · Score: 0

      One may not be able to mail an anonymous letter properly, but one could:

      a. Drop the anonymous envelope in the targets' mailbox(es)
      b. Place the anonymous envelope under the target windshield
      c. Put fake return information on an envelope

      etc... Anonymity is the last great refuse against the tyranny of the powerful.

      At any rate, people should be able to go online and anonymously threaten people. Part of prosecuting people for a threat rests on the potential validity of said threat. For example, if I said:

      I'm going to fucking summon a pink colored meteor from the universe and cause it to crash into the jury deliberations!

      ...do you believe that it would be a good use of time and money of the law enforcement and legal systems to track me down and prosecute me?

      Should one take anonymous, barely specific threats seriously? I do not think so.

    7. Re:i'll be the first to say.. by Anonymous Coward · · Score: 4, Interesting

      Apparently they want the identities of all submitters of comments on that article. Not just the ones who made threats (going from the vague to the hyperbole).

      It's actually a chilling effect. One day you are commenting on a newspaper article (without making threats), the next day your name and address pop up on some prosecutors desk while he is investigating another commenter on the same article.

    8. Re:i'll be the first to say.. by Quothz · · Score: 4, Insightful

      True, but I don't understand why this is such a big deal. You could never mail anonymous letters threatening people without triggering an investigation, why do people think that when they go online they can threaten people and not suffer consequences?

      That was my first thought, as well: The freedom to speak anonymously isn't freedom to make anonymous threats. However, I disagree that anyone was threatening the jury here. There's a huge gap between "they ought to" hurt someone and "I'm going to" hurt someone. If I say that George W. Bush should be tarred, feathered, and ridden out of the country on rails, that's not the same as threatening to assault him.

    9. Re:i'll be the first to say.. by Anonymous Coward · · Score: 0

      Just because they shouldn't be taken (very) seriously, doesn't mean they shouldn't be punishable.

      And it's so easy: Don't threaten people with death.

    10. Re:i'll be the first to say.. by Anonymous Coward · · Score: 0

      When I see anonymous threatening language, I don't typically imagine either a 120lb nerd, nor a 300lb bear wrangler, but usually either a teenage pimpleface, or a juvenile 250lb asshole that each would run, scream, and/or hide in real-life...

    11. Re:i'll be the first to say.. by Chlorine+Trifluoride · · Score: 3, Funny

      As a 300lb UFC fighting bear wrangler, I agree with you.

    12. Re:i'll be the first to say.. by jelle · · Score: 2, Funny

      "Automated Clearing House".... Everytime I see that, I hear 'You May Already Have Won'...

      Did the person who came up with that name think banking was like sweepstakes???

      --
      --- Hindsight is 20/20, but walking backwards is not the answer.
    13. Re:i'll be the first to say.. by Anonymous Coward · · Score: 0

      ..what a terrible summary

      I think it should be hung.

    14. Re:i'll be the first to say.. by MyLongNickName · · Score: 4, Informative

      Clearing houses pre-date Publisher's Clearing House by decades. In fact, my guess is that this is where PCH got the name. Basically clearing houses were places where banks would exchange all of the checks they received from other banks. Accounts would be settled between banks. As a manual process, it was a royal pain in the ass. In the era of electronic funds transfers and check imagining, this process has become much more automated, reducing float times that some individuals would take advantage of.

      --
      See my journal for slashdot ID's by year. Mine created in 2005. http://slashdot.org/journal/289875/slashdot-ids-by-year
    15. Re:i'll be the first to say.. by ComaVN · · Score: 1

      because words on the internet have no consequence?

      Neither does an anonymous letter, or a letter filled with inert white powder, or a packet of C4 without a detonator for that matter.

      --
      Be wary of any facts that confirm your opinion.
    16. Re:i'll be the first to say.. by stonewallred · · Score: 5, Funny

      I find your ideas interesting, and if you include Cheney in your plans, I would like to subscribe to your newsletter.

    17. Re:i'll be the first to say.. by TapeCutter · · Score: 1

      "Furthermore, the big ideas should have been at the top of the summary, with the detail about the case down into the paragraphs. I know this and I've never had one single journalism class, albeit I did take the required writing and composition classes in college."

      There is also some sort of rule about the facts and disclaimers coming either at the end of the story or in the court ordered retraction.

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    18. Re:i'll be the first to say.. by conspirator57 · · Score: 2, Informative

      reducing float times that some individuals would take advantage of,
      and turning them into float times that banks take advantage of.

      There, fixt that for you.

      --
      "If still these truths be held to be
      Self evident."
      -Edna St. Vincent Millay
    19. Re:i'll be the first to say.. by TapeCutter · · Score: 1

      If you try any of those I'm sure you will find they do have consequences, granted they're not the ones you were thinking of.

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    20. Re:i'll be the first to say.. by Anonymous Coward · · Score: 1, Funny

      I'm going to fucking summon a pink colored meteor from the universe and cause it to crash into the jury deliberations!

      Sephiroth? Is that you?

    21. Re:i'll be the first to say.. by sumdumass · · Score: 2, Funny

      As a beer wrangler.. oops. you said bear wrangler

      For a minute there, I was about to be offended.

    22. Re:i'll be the first to say.. by Anonymous Coward · · Score: 0

      Anonymity is the last great refuse against the tyranny of the powerful.

      refuse?

    23. Re:i'll be the first to say.. by FrankieBaby1986 · · Score: 3, Interesting

      There's a huge gap between "they ought to" hurt someone and "I'm going to" hurt someone.

      Wow, do I wish more people realized this. I was suspended in Highschool for this EXACT same thing. I "Threatened" another student who had been picking on me by saying I ought to kick his ass. When I pointed out to the vice principal that the choice of the words "ought to" was intentional because it implied I was not going to, she claimed there was no difference.

      --
      ERROR: SIG NOT FOUND (A)bort, (R)etry, (F)ail?:
    24. Re:i'll be the first to say.. by b4upoo · · Score: 1

      Our nation has gone nuts. Currently the rule seems to be that if a person perceives words to be a threat then a threat has been made.
                      And that is bonkers beyond all reasoning. People may perceive absolutely anything. Their perceptions can be totally wrong and even worse these threat cases do not get equal standing in law. For example if you go to the local bar and you and another drinker exchange words and you state that you are going to punch his lights out you need not fear squad cars with flashing lights in your driveway.
                      Further there is no historical support for these "threat" type of laws. For example John Calvin preaching that anyone involved in the charging of interest should be tied to a pole and "sliced" surely made bankers rather nervous but the courts 300 years ago were not insane enough to put Calvin on trial for his beliefs.

    25. Re:i'll be the first to say.. by skuzzlebutt · · Score: 1

      re: ACH...meh...that's just how my brain works. I've worked in banking for over a decade and that's just what we call it. I spent all of four minutes writing the summary.

      --
      My debut novel AMITY now available: http://jeremydbrooks.c
    26. Re:i'll be the first to say.. by GNT · · Score: 1

      Never mind that noone was threatened.....

    27. Re:i'll be the first to say.. by interkin3tic · · Score: 1

      If I say that George W. Bush should be tarred, feathered, and ridden out of the country on rails, that's not the same as threatening to assault him.

      You didn't read the patriot act, did you?

      Tsk tsk... You'll have time to do so at gitmo.

    28. Re:i'll be the first to say.. by Anonymous Coward · · Score: 0

      Good sir, it appears that you have mistaken a point the above poster intended to imply for a point he did not recognize.

    29. Re:i'll be the first to say.. by sbeckstead · · Score: 1

      "electronic funds transfers and check imagining,"
      I like check imagining. I imagine I'll give the bank a very large check for a very large amount of cash. they just don't seem to have the same imagination I do. They also have no tolerance for recursion. I wrote myself a check for $200 and deposited it withdrawing $100 and they got upset and pulled my teller card.

    30. Re:i'll be the first to say.. by Anonymous Coward · · Score: 0

      Her definition of being threatened is if she 'feels' threatened because she's a pussy.

    31. Re:i'll be the first to say.. by Anonymous Coward · · Score: 0

      Nice FPW! Next time, try to write a meaningful reply to the person you're replying to. Besides - the fact that you didn't post anonymously reveals that you completely missed this joke. I wish all commenters replied to this article anonymously...

    32. Re:i'll be the first to say.. by Thinboy00 · · Score: 1

      There's a huge gap between "they ought to" hurt someone and "I'm going to" hurt someone.

      Wow, do I wish more people realized this. I was suspended in Highschool for this EXACT same thing. I "Threatened" another student who had been picking on me by saying I ought to kick his ass. When I pointed out to the vice principal that the choice of the words "ought to" was intentional because it implied I was not going to, she claimed there was no difference.

      School == Prison. They're not going to treat you the same way a court would.

      --
      $ make available
    33. Re:i'll be the first to say.. by Thinboy00 · · Score: 1

      What is this gitmo of which you speak? Do you mean the one Obama shut down?

      --
      $ make available
  2. Thought... by Anonymous Coward · · Score: 0

    This means that if my employer pays me in nickels then I also must pay more in income tax to the feds as a nickel is worth more then five cents in pure metal value these days.

    1. Re:Thought... by juiceboxfan · · Score: 4, Informative

      This means that if my employer pays me in nickels then I also must pay more in income tax to the feds as a nickel is worth more then five cents in pure metal value these days.

      No, you can go to the bank and get nickles for 5 cents each. You can not go to the bank and get $20 gold pieces for $20 each.

      If you were melting down the nickels and selling the bulk metal you would be in violation of more than tax laws.

    2. Re:Thought... by morgan_greywolf · · Score: 1

      This means that if my employer pays me in nickels then I also must pay more in income tax to the feds as a nickel is worth more then five cents in pure metal value these days.

      All nickels minted after 1964 are made out of a copper-nickel clad (alloy). The metal value of a nickel might be worth more than 5 cents, but I doubt it. Anyway, it doesn't matter since federal states that the value of currency is the face value, period, and that any melting down of coins for metal is willful destruction of government property, which is, at the very least, a misdemeanor.

    3. Re:Thought... by larry+bagina · · Score: 1
      You don't hear about it so much today, but a couple years ago, demand (and prices) for copper was up enough that people were stealing copper pipes.

      Anyhow, a $20 gold coin has a face value of $20. That's what makes it a $20 gold coin.

      --
      Do you even lift?

      These aren't the 'roids you're looking for.

    4. Re:Thought... by nacturation · · Score: 1

      This means that if my employer pays me in nickels then I also must pay more in income tax to the feds as a nickel is worth more then five cents in pure metal value these days.

      No, you can go to the bank and get nickles for 5 cents each. You can not go to the bank and get $20 gold pieces for $20 each.

      Furthermore, his innocence or guilt will depend on what he paid his employees. If I agreed to work for him for $20/hour and he gave me a $20 face-value gold coin per hour, then he's innocent and an idiot.

      --
      Want to improve your Karma? Instead of "Post Anonymously", try the "Post Humously" option.
    5. Re:Thought... by interkin3tic · · Score: 1

      This means that if my employer pays me in nickels then I also must pay more in income tax to the feds as a nickel is worth more then five cents in pure metal value these days.

      If that were true, that would still be less of an annoyance than dealing with all those nickels.

    6. Re:Thought... by cez · · Score: 1
      ...not just a couple of years ago, that is still common place some places now! When I was looking for an apartment last year, this landlord met my roommate and I at one of his "not quite finished yet" places he was renovating... while we were waiting for him we noticed a sign on the door:

      Dear Crackhead,

      There is no copper left here! Call me at 555-xxxx and I will give you five fucking dollars, stop breaking my door/locks!

      needless to say we didn't take that place.

      --
      Walk with Music;
    7. Re:Thought... by Klaus_1250 · · Score: 1

      Anyhow, a $20 gold coin has a face value of $20. That's what makes it a $20 gold coin.

      Well, a tomato is (oversized) berry, which makes it a fruit. But it is (was?) taxed in the US a vegetable. Things are what they are, unless the government says otherwise.

      --
      It only takes one man to change the Wisdom of the Crowd to Tyranny of the Masses.
    8. Re:Thought... by DragonWriter · · Score: 1

      Furthermore, his innocence or guilt will depend on what he paid his employees. If I agreed to work for him for $20/hour and he gave me a $20 face-value gold coin per hour, then he's innocent and an idiot.

      If by "innocent" you mean "guilty only of failing to report any of the wages to the IRS, and of failing to withhold or pay any of the required payroll or income taxes", then, yes, this would appear correct.

      The "all I'm paying is the face value of the coins" scam isn't the only (or even the main) reason he's in trouble.

    9. Re:Thought... by DragonWriter · · Score: 1

      All nickels minted after 1964 are made out of a copper-nickel clad (alloy). The metal value of a nickel might be worth more than 5 cents, but I doubt it.

      You can always check here, but the upshot is that you would be correct to doubt it.

  3. Constitution by Anonymous Coward · · Score: 2, Insightful

    "No State shall [...] make any Thing but gold and silver Coin a Tender in Payment of Debts [...]"
    --Article 1, Section 10 of the United States Constitution

    Federal Reserve Notes are nothing but counterfeit money.

    1. Re:Constitution by morgan_greywolf · · Score: 1

      Sorry, it says that no "State shall". Hence, the power is reserved to the federal government,

    2. Re:Constitution by twostix · · Score: 0

      What power?

      It's stating that states must accept gold and silver and only gold and silver as tender. How hard is that to understand?

      To hard for some it would seem. Apparently there's got to be secret hidden meanings and interpretation in everything.

    3. Re:Constitution by Chlorine+Trifluoride · · Score: 4, Informative

      "The Congress shall have power ... To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;" --Article 1, Section 8 of the United States Constitution

    4. Re:Constitution by Anonymous Coward · · Score: 0

      Uh, I think that string of logic is flawed. Just because something is not explicitly prohibited does not mean it is allowed.

    5. Re:Constitution by conspirator57 · · Score: 1

      i think it'd be great for a state to coin some silver and gold money. might help keep the fed more honest.

      and it'd lead to a legitimate constitutional challenge to the legal tender laws.

      --
      "If still these truths be held to be
      Self evident."
      -Edna St. Vincent Millay
    6. Re:Constitution by KiahZero · · Score: 2, Informative

      No, it's stating that states may not MAKE anything but gold and silver coin a tender.

      That means they can't design their own legal tender. It doesn't mean that they can't accept legal tender made by the federal government.

      --
      I'm a lawyer, but not yours. I wouldn't represent someone who thinks taking legal advice from Slashdot is a good idea.
    7. Re:Constitution by DragonWriter · · Score: 1

      "No State shall [...] make any Thing but gold and silver Coin a Tender in Payment of Debts [...]"
      --Article 1, Section 10 of the United States Constitution

      Federal Reserve Notes are nothing but counterfeit money.

      Nice try, but Federal Reserve Notes are not made tender in payment of debts by any State, as the term "State" is used in the US Constitution, and therefore are not within the scope of that prohibition; they are legal tender by Act of Congress (Coinage Act of 1965, particularly that bit codified at 31 USC Sec. 5103: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues." If Congress makes it money, it is real money, not conterfeit, because of Congress' express power in Article I, Section 8: "The Congress shall have power [...] To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures; [...]"

    8. Re:Constitution by GNT · · Score: 1

      Uh no -- Learn to read -- No State shall make ***...***BUT*** gold and silver etc

      Which means that the Feds have the power to prevent the States from issuing FIAT currency.

    9. Re:Constitution by eXFeLoN · · Score: 0

      what is the current $ to FIAT conversion rate? Are the FIATS strictly cars? Fiat has made construction vehicles, planes and tanks as well.. I guess I could go with $ to Fiat 500's...

      --
      My other sig is a knife wound.
    10. Re:Constitution by Anonymous Coward · · Score: 0

      "No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts ..." - Article I, Section 10,

    11. Re:Constitution by denzacar · · Score: 1

      Each state issuing its own currency leads to great differences in value.
      Silver and gold, change value from country to country, from state to state - just ask Auric Goldfinger. Soon you end up with worthless paper.
      http://en.wikipedia.org/wiki/Wildcat_banking

      Which naturally, leads to financial crises. Which, since you now lack a system to balance it out, affect some MUCH harder than the others.
      http://en.wikipedia.org/wiki/Panic_of_1857

      So you end up in a state of increased sectionalism and separatism.
      http://en.wikipedia.org/wiki/Antebellum

      And then people start killing each other.

      --
      Mit der Dummheit kämpfen Götter selbst vergebens
    12. Re:Constitution by Chlorine+Trifluoride · · Score: 1

      The IRS is not part of a state.

    13. Re:Constitution by xmundt · · Score: 2, Interesting

      Greetings and Salutations.
                Actually, the writers of the American Constitution thought of this. The fact of the matter is that the Constitution is a document which defines what powers the citizens of the USA are willing to allow the government to have. Anything that is NOT mentioned is, explicitly, reserved for the Citizenry. So...as regards the Constitution, yea...if it is not specifically addressed, then it is allowed to the CITIZENS..not the government.
                As for the rest of the tens of thousands of laws that we Americans have allowed ourselves to become burdened with...the same principle applies there too. Unless there is a law that specifically prohibits an act, then, that act is ALLOWED. For example, the original formulations for Coca Cola included a fairly goodly shot of cocaine. At the time, this was not addressed in law, so was perfectly legal. It gave Coke that refreshing zap! Now, as time progressed, certain drugs were prohibited by law...and vanished from Coke.
                However, one worrisome evolution in America is the concept of "freedom zones", where protestors against a politician or event are corralled. It is usually fairly far away from the person or event in question, and, often means that the protestors are "out of sight and out of mind". There are no statutes covering this, and, I suspect any such laws would be overturned by the courts in short order. Now..my question here is this: Although this appears to fall into the area covered by your statement...is this a "good" thing, and is this where American should be going? I think not, and, I hope that others agree. It is this sort of attitude that ends up with a Citizenry cowering in fear under the thumb of a repressive government, and, is the rot that will destroy America in the long run, if it is allowed to continue and grow.
      regards
      dave mundt

      --
      YAB - http://blog.beemandave.com/
    14. Re:Constitution by morgan_greywolf · · Score: 1

      Did you read article I section 8, just about section 10? You know, where the Constitution grants Congress the power to issue money? Or do you fail to understand the difference between taking quotes out of context and, you know, actually reading and understanding what's in writing?

    15. Re:Constitution by morgan_greywolf · · Score: 1

      In context, my string of logic is not flawed. Read Article 1 ssection 8, two sections above section 10. Then you'll see that my logic is impervious.

    16. Re:Constitution by conspirator57 · · Score: 1

      i don't think you've proved you case, but even your unproven assertions are... reaching at their best. you also ignore our current trajectory towards a king who may eventually not deign to leave when someone else is elected. that whole power corrupting thing again.

      i want the power of government to be very decentralized and mutually skeptical. in short, the underrated value of having tiered government is that it can be used to enhance checks and balances so that the system remains stable.

      i'm sorry, but both bush and obama look like they're devoted to nothing more than throwing the rule of law off the bus.

      --
      "If still these truths be held to be
      Self evident."
      -Edna St. Vincent Millay
    17. Re:Constitution by Anonymous Coward · · Score: 0

      this was constitutional power was given to the Federal Reserve -- a private company.

    18. Re:Constitution by Anonymous Coward · · Score: 0

      Regulate as in decide how big or small the size of the gold and silver they will be using as legal tender are.
      Our stupid lazy parents let them get away with taking us off the gold standard, and as a result we get inflation that robs us of our money.

    19. Re:Constitution by Mr.+Firewall · · Score: 1

      Federal Reserve Notes are nothing but counterfeit money.

      Nice try, but Federal Reserve Notes are not made tender in payment of debts by any State, as the term "State" is used in the US Constitution, and therefore are not within the scope of that prohibition; they are legal tender by Act of Congress (Coinage Act of 1965

      WHOOSH!

      Very well spelled out and argued, but you missed the fact that the GP was making a rhetorical point. Some people believe that all fiat paper is illegitimate, and by "counterfeit" s/he meant "phony".

      --
      In times of universal deceit, telling the truth gets you modded -1 Troll
    20. Re:Constitution by DragonWriter · · Score: 1

      WHOOSH!

      Very well spelled out and argued, but you missed the fact that the GP was making a rhetorical point. Some people believe that all fiat paper is illegitimate, and by "counterfeit" s/he meant "phony".

      GGP specifically said that it was "counterfeit" because of a specific Constitutional provision that, as I pointed out, has no bearing. Your attempt to claim that I am missing the point by cleverly redefining a word in GP's post in a way which is superficially plausible for the word itself but completely ridiculous in the context of the post is mildly entertaining, but not particularly convincing.

  4. Yes. by Anonymous Coward · · Score: 5, Funny

    Anonymous commenting is no longer worth the effort.

    AC OUT!

    1. Re:Yes. by Anonymous Coward · · Score: 0

      You'll be fine: just make sure you're behind over 9000 proxies.

    2. Re:Yes. by Anonymous Coward · · Score: 0

      Do other people see Anonymous Cowardon?

  5. Re:Fucking losers by Rik+Sweeney · · Score: 1

    Only sad twats write into newspapers anyway.

    That's slander. I'll see you in court.

  6. if it was truly anonymous by mehrotra.akash · · Score: 1

    how could they be traced in any way??

    1. Re:if it was truly anonymous by clone53421 · · Score: 1

      It wasn't truly anonymous. It was just pseudo-anonymous.

      If I post anonymously on here, Slashdot still records my IP, which they'd turn over if subpoenaed. Having my IP, the authorities would be able to track me down with little difficulty, I'm sure.

      Unless I'm using Tor...

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    2. Re:if it was truly anonymous by sumdumass · · Score: 1

      Unless I'm using Tor...

      Then they will track down some single mother of three who's son was told to install it by an activist teacher at school wanting to make sure there was plenty of end point nodes availible for the "repressed".

    3. Re:if it was truly anonymous by mehrotra.akash · · Score: 1

      what about hidemyass.com and others??

    4. Re:if it was truly anonymous by clone53421 · · Score: 1

      Being untraceable is a particular skillset that very few people have and requires in-depth understanding of TCP/IP.

      Care to elaborate on that? How secure is Tor, anyway?

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    5. Re:if it was truly anonymous by cayenne8 · · Score: 1
      "Anonymous is just a courtesy option that some websites provide and, for the most part, those comments are linked to IPs which are retained in the server logs for an unknown period. Any website operator that does not want to go to jail will give up those server logs if there is a valid warrant."

      Why would an admin, running a website offering 'anonymous' posting even keep logs that associated IP with posters?

      Seems the best thing to do for all considered, is not to log IP/poster information. Nothing (in the US so far) says you have to.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    6. Re:if it was truly anonymous by clone53421 · · Score: 1

      Agreed, but unless they actually turn off the logging, it probably happens by default. Most of them aren't thinking of this until they get the subpoena.

      Also, a lot of them are lazy. Given the choice, they'd rather hand over the IPs and be done with it. "We don't have them" would almost certainly be a harder legal battle to fight (still a defencible position; as you said, it's legal, so they can't nail you for anything, but I'm betting it'll still be more trouble).

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
  7. And so.. by GeorgeStone22 · · Score: 0, Offtopic

    I TROEL U

  8. Cato & Brutus by Anonymous Coward · · Score: 0

    So does no one remember Cato and Brutus in American history?

    1. Re:Cato & Brutus by Anonymous Coward · · Score: 0

      wasn't cato involved in the OJ trial?

  9. Re:Fucking losers by Anonymous Coward · · Score: 0

    Only sad twats write into newspapers anyway.

    Your mom's twat looks like Osama Bin Laden's beard. She really needs to learn what a razor is...

  10. it's the nature of the web... by Anonymous Coward · · Score: 0

    I agree with the prosecution though, all these anonymous cowards should be sentenced to death by hanging....

  11. Threats by JPLemme · · Score: 4, Insightful

    I don't trust the government to protect my rights, but in this case they may have a point. Threatening people with bodily harm is illegal, and freedom of speech is not a valid defense. If you choose to break the law, then you're giving the cops permission to hunt you down and prosecute you, "anonymous" or not. (Even if the law is a bad one and the cops are thugs controlled by a petty dictator.) (Iran, et al.) Which doesn't mean that I think anonymity is bad; I just think that you should learn a little bit about the law and about search warrants and about technology before you start your life of crime. (True anonymity is necessary to defend freedom, even if it means a thousand Cletuses and Bubbas can use it, too.)

    1. Re:Threats by sakdoctor · · Score: 5, Insightful

      I don't trust the government to protect my rights

      Neither do I.
      Problem is, many people see governments as the source of rights; so it's an uphill struggle right from the start.

    2. Re:Threats by jackb_guppy · · Score: 5, Insightful

      They do not have point of asking for ALL information of EVERY ONE that posted. This includes Credit Card Numbers, ISP, and Addresses for every poster.

      If they tailored request to those few (I read three) that actually crossed the line into threatening, then it is what you say.

      I believe it is the over reach that is why ACLU and Review are both fighting for anonymity of their posters.

      It is also a pleasure to a media outlet that lives by the 1st Amendment to support their reader 1st Amendment rights. -- Do you hear that NBC, FOX and others that force user give up those rights to respond to articles.

    3. Re:Threats by Anonymous Coward · · Score: 0

      Threatening people with bodily harm is illegal, and freedom of speech is not a valid defense.

      But what the law fails to take into account is that throwing a message up on a board (esp. anonymously) is MUCH more similar to actually speaking than writing.
      Think about it like this: I get mad at someone and say "I cant believe you did that! I could kill you!!!" Yes it's extreme, but unless the person turned up dead I doubt anyone is going to make a legal fuss over it.
      However, if you put those words on paper and are dumb enough to actually mail it, you bet there will be an investigation.

      The difference here is spontaneity.
      Writing a letter and mailing it is premeditated.
      Reading something online, getting mad, clicking in a text box, typing a rant, and clicking "post" all in a few seconds is not.


      ps. Im a long time /. member.... I'm posting this AC just for the irony.

    4. Re:Threats by Tanktalus · · Score: 1

      (Even if the law is a bad one and the cops are thugs controlled by a petty dictator.) (Iran, et al.)

      Right up to that "Iran" bit, I thought you were talking about North America, and referring to union bosses.

    5. Re:Threats by Curunir_wolf · · Score: 5, Informative

      They do not have point of asking for ALL information of EVERY ONE that posted. This includes Credit Card Numbers, ISP, and Addresses for every poster.

      If they tailored request to those few (I read three) that actually crossed the line into threatening, then it is what you say.

      I guess the prosecutors eventually got that exact message, because they have now narrowed the subpoena to just two posters.

      I don't really disagree with your point, but in this case it's just William Cohan once again being a complete tool. He'd go after your grandmother for assault on a public official if she complained about a tax bill. He's been going after Robert Kahre for years, this isn't the first time. This latest round reeks of vindictiveness over having his case completely thrown out the last time he tried it.

      Here's a little more background if you're interested.

      --
      "Somebody has to do something. It's just incredibly pathetic it has to be us."
      --- Jerry Garcia
    6. Re:Threats by Anonymous Coward · · Score: 0

      I don't trust the government to protect my rights, but in this case they may have a point. Threatening people with bodily harm is illegal, and freedom of speech is not a valid defense. If you choose to break the law, then you're giving the cops permission to hunt you down and prosecute you, "anonymous" or not. (Even if the law is a bad one and the cops are thugs controlled by a petty dictator.) (Iran, et al.)

      Which doesn't mean that I think anonymity is bad; I just think that you should learn a little bit about the law and about search warrants and about technology before you start your life of crime. (True anonymity is necessary to defend freedom, even if it means a thousand Cletuses and Bubbas can use it, too.)

      yes i agree this is a most Double-Plus Un Good offense

    7. Re:Threats by Will.Woodhull · · Score: 2, Informative

      RTFA.

      The feds are going after everyone who posted anonymously, not just anonymous posters who made comments that might be threatening (or might only be juvenile hyperbole).

      A much more targeted subpoena could have been easily drafted, demanding information on only on a list of the anonymous posts that could be construed in some way as threatening. That was not done; the subpoena is not properly focused. The only obvious reason for constructing the subpoena this way is to use it as a threat to silent public discussions that the prosecution does not like.

      In addition, those that did actually RTFA know that the subpoena is demanding data that is technically absurd and would require the newspaper to do the investigative work of law enforcement: in addition to names and IP addresses of all the anonymous posters, the subpoena calls for their street address, age, and gender.

      The subpoena was initiated at least in part by the prosecutor in the tax evasion case, and on its face it looks like an attempt by that prosecutor to use the Grand Jury system to manipulate public expressions that could affect his political aspirations. That is definitely in violation of professional ethics, and almost certainly in violation of the prosecutor's legally binding limitations as an officer of the Court.

      I'm glad to see the ACLU is proactively involving itself in this. And I would hope the Federal Justice Department is taking a look at whether its employee is mishandling his responsibilities. This looks like a Damm mess.

      --
      Will
    8. Re:Threats by Anonymous Coward · · Score: 0

      Oh come on now.

      There's a huge difference in my standing in front of you and threatening you with bodily harm, and my posting an equivalent comment on a message board on the internet.

      The first case is the one you take seriously, because I'm there right there in front of you. The second case you dismiss as a crank, especially if you're fairly certain that I don't have the slightest idea who you really are or how to find you.

      When did the world sudden fill up with whiny crybabies?

    9. Re:Threats by metamorphage · · Score: 1

      What are you talking about? Anonymity does not equal the First Amendment. You have every right to post whatever you want on NBC's forums - they just want some information in exchange. Don't like it, don't post there. The First Amendment only comes into play when somebody tries to prosecute you for what you've said - anonymous or not.

    10. Re:Threats by bitt3n · · Score: 1

      Threatening people with bodily harm is illegal, and freedom of speech is not a valid defense.

      I'm not sure that's actually true. a supreme court quotation from the wikipedia 1st amendment article:

      [Our] decisions have fashioned the principle that the constitutional guarantees of free speech and free press do not permit a State to forbid or proscribe advocacy of the use of force or of law violation except where such advocacy is directed to inciting or producing imminent lawless action and is likely to incite or produce such action.

      saying "these people should be hanged" or whatever does not seem likely to incite imminent lawless action, which I (perhaps incorrectly) presume to mean action that the law cannot be expected to stop, such as in the case of a mob boss telling his crony "shoot that guy there in the head, right now," which would not be protected.

    11. Re:Threats by Anonymous Coward · · Score: 0

      >Threatening people with bodily harm is illegal

      Under federal criminal statutes? Really? Even when there is no reasonable apprehension of the threat being carried out?

    12. Re:Threats by samkass · · Score: 1

      The First Amendment is commonly interpreted to imply a right to anonymity-- otherwise there would be a significant burden to free speech, and the First Amendment precludes "abridging" speech. Here's what the EFF and
      Citizen Media Law have to say.

      Just like the 2nd amendment is interpreted to apply mainly to guns even though the word "gun" (or even firearm) doesn't appear within it, anonymity is assumed to be part of one's freedom to speak openly in defiance of the majority opinion.

      --
      E pluribus unum
    13. Re:Threats by Bigjeff5 · · Score: 1

      There is also the right of the defendant to reject illegitimate requests for unrelated information.

      Names of 2 or 3 posters who made veiled threats could be considered legitimate.

      Names of all posters on the board, regardless of the content of their post, is not legitimate. It's like subpoenaing the tax records of an entire neighborhood because one person is engaged in tax evasion. It does not make sense, and the prosecutor does not have a right to request that information.

      This is all related to the First Amendment, philosophicaly if not literally. Newspapers have a long history with the First Amendment, and they tend to fight anything even remotely related to it, because it is their protective shield.

      So they are fighting this, and apparently have gotten the prosecution to back the request down to two posters instead of the entire list, if what other slashdotter's say is true. That is much more reasonable, but may still be worth fighting for the newspaper. They've gotten anonymous sources pretty well protected (though not completely).

      --
      Security is mostly a superstition... Avoiding danger is no safer in the long run than outright exposure. - Helen Keller
    14. Re:Threats by Anonymous Coward · · Score: 0

      Which branch of the government are we talking about? I mean surly you have to count on the judicial branch to help you defend or enforce your rights?

      As for your other point, the Bill of Rights tells us where are rights come from, they come from our creator, which in my case is Mitsubishi - Robotics Division.

  12. anonymity is a right by spyrochaete · · Score: 4, Insightful

    I believe that in the (implied, non-existant) Internet charter of rights anonymity is a basic human right. I believe in opt-in, not opt-out. A webmaster has a sacred trust that he will guard his users' IP addresses and only leverage them for internal use, if at all. Besides, that IP address could have been used by the subscriber, a child, a wardriver, a cheapskate nextdoor neighbour, or an entirely different household if the ISP made a mistake in their logs.

    On my blog I allow anonymous comments and I wrote "(optional)" next to the email and WWW fields on the comment submit form. I get TONS more spam because of this, but that's a service I feel is essential to my readers and integral to the fabric of the web.

    If the government fears how people react to facts then maybe they should outlaw news media.

    1. Re:anonymity is a right by Anonymous Coward · · Score: 0

      Your user name is a perfect reflection of your cognitive abilities. These people are threatening a *jury*. That's not a threat to the government - it's a threat to the sovereignty of law.

      Let's use your logic, but the other way - if the government is afraid for the safety of juries, maybe they should just eliminate jury trials and have all trials be by judge.

    2. Re:anonymity is a right by Anonymous Coward · · Score: 0

      Great idea. The whole jury thing is retarded anyway.

    3. Re:anonymity is a right by Anonymous Coward · · Score: 0

      On my blog I allow anonymous comments and I wrote "(optional)" next to the email and WWW fields on the comment submit form. I get TONS more spam because of this, but that's a service I feel is essential to my readers and integral to the fabric of the web.

      Which, in turn, means you get fewer new readers to your blog because they don't want to wade through mountains of spam to get to the one or two comments that mean something, and they similarly don't want their comments lost in the landfill of junk posts you get.

      To be perfectly frank, I care about the readers of my website (not linking it because, well, this isn't meant to be an advertisement) enough to not have to force them to sift through tons of spam to get to actual content. What you're doing is appeasing the paranoid (who, on the whole, also have a superiority complex and don't really want to add anything to the conversations of you lesser mortals) at the cost of actual readers and conversation. Remind me not to visit your blog.

  13. How the judge SHOULD rule by davidwr · · Score: 2, Interesting

    The judge should look at each comment individually as well as holistically against other comments apparently by the same commenter.

    If the comments appear to be a credible and actual threat against a juror, as opposed to someone blowing off steam, making non-credible threats, or just blowing off steam, then it's worth a closer look.

    To determine if unauthenticated comments apparently made by the same commenter are made by the same commenter I would order the newspaper to provide a statement saying the comments are very likely from the same computer, very unlikely from the same computer, or there is no way to tell. If the post looks like it's from the same person, and the computer is the same, the court can assume it's the same until someone claims otherwise.

    Now once I have a list of comments that are credible threats, then it's time to go further:
    I would give a special master subpoena power for the IP and login-time information for those posts and subpoena power to the ISPs for the approximate street address of the customer. The court would use this to determine if the seemingly credible threats really were credible. If a threat said "I'm going to walk into your office and shoot you" but the threat came from a town 3 states away, that's likely not credible. Once I've gotten down to the credible threats, then and only I would allow the person's name and address to be subpoenaed. I would also look very favorably on anyone who, upon being contacted by the court or the police, claimed they were joking or blowing off steam. After all, out of every random group of people making credible-sounding threats like these, by far most are harmless.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    1. Re:How the judge SHOULD rule by KiahZero · · Score: 1

      Non-credible threats are still illegal, and thus it is a valid exercise of state power to attempt to prosecute people for making them.

      --
      I'm a lawyer, but not yours. I wouldn't represent someone who thinks taking legal advice from Slashdot is a good idea.
  14. Why make it traceable? by DoofusOfDeath · · Score: 4, Interesting

    Does anyone know why forum administrators even bother keeping around enough information to reveal the identity of an anonymous poster?

    I mean, I can see keeping around the web server logs for a day or two, to help debug problems. And if you do analytics, keeping the logs around long enough for the analytics software to compute aggregate data.

    But why keep any data longer than that; especially data that's detailed enough to tie an IP# to a posted message?

    1. Re:Why make it traceable? by Darkness404 · · Score: 3, Insightful

      ...Because most forum admins know next to nothing about computers other than "type this and it sets up a bulletin board!!!"?

      --
      Taxation is legalized theft, no more, no less.
    2. Re:Why make it traceable? by Anonymous Coward · · Score: 0

      Because it's the dafault setting to keep the logs. Setting up guidelines and a system to delete stuff costs time and offers no monetary benefit. There is no incentive to delete anything.

    3. Re:Why make it traceable? by Anonymous Coward · · Score: 0

      There are analytics and there are intrusion detection reasons for keeping the logs. Having said that, I run daily backups. I do not actively try to avoid backing up that data. I may, for example, need to test a different algorithm against my collected data in the future. The historical records will help me do that. I do not have an enough information to identify someone immediately. With some work, however, you can start correlating infromation and make some reasonable guesses. I am not sure they could hold up in a court of law, however.

      Example:
      I trace to a particular computer in a house. That house is the primary residence for a family of four, consisting of a mother, father, and two teenage offspring (minors). The computer runs Windows and has no password. Did a parent post the comments or one of the teenagers? Beyond being different applications of the law because of the minors, that is solidly reasonable doubt. It also does not remove the fact that it may have been done by a friend who was at that house, either.

    4. Re:Why make it traceable? by iceperson · · Score: 1

      Most forum admins record the IP of posters to ban spammers and/or abusive posters.

    5. Re:Why make it traceable? by networkBoy · · Score: 1

      FWIW my site: farmersreallysucks.com doesn't keep anything. It makes my stats more amorphous, but I only retain the first two octets of IP info, and that only till I do the log summaries. Fo my (currently borked) hit counter by the lawyers and Farmers, I compute that on the fly with a CGI script in an iFrame.

      on my other sites that are less controversial I keep standard logs of 30 days, and that's it. It's only an issue when I get a DOS attack, which only happens every so often.

      When I had a more interactive site that actually accepted comments, it wasn't that hard to blind who made a comment Vs. their IP address. Of course blinding the IP made it hard to filter spam, so ultimately I switched to the mail-in comments, rather than the free for all I had before.

      -nB

      --
      whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
    6. Re:Why make it traceable? by Anonymous Coward · · Score: 0

      Maybe because some forum administrators believe there are enough checks and balances in place to prevent abuse and it's socially responsible to maintain enough information to trace terrorists and criminals, and are willing to give that information to authorities? You'd never know it from reading YRO, there are some out there.

    7. Re:Why make it traceable? by VeNoM0619 · · Score: 1

      iceperson makes mention of this down the chain, but to elaborate:


      They keep it to prevent spamming/griefers from creating countless "LOL PENIS" posts. So they can ban IPs (which gets rid of about 90% of the idiots who don't know what proxies are). This is why some forums have "approve by admin before account creation options" but once the forum gets bigger, they default to captchas (which any spammer will get by).

      Not all forums are like slashdot (with the 60 minute wait), but if one wanted to, one could easily spam slashdot forums just as well (with a little more tech know how required of course, imagine a beowulf cluster of botnets all posting first post on here).

      --
      Disclaimer: I am not god.
      We may not be created equal
      But we can be treated equal.
  15. Face Value vs Ore Value by Rockoon · · Score: 5, Interesting

    So on the one hand we take Gold Coins and use the Ore Value, while on the other we take Quarters and use the Face Value.

    So lets say I take my pay check and head off to the bank and when cashing it, get a roll of pennies. Further suppose that one these pennies has some rare quality making it worth $100 to a collector... is that an extra $100 of Income?

    --
    "His name was James Damore."
    1. Re:Face Value vs Ore Value by leonardluen · · Score: 5, Insightful

      If you sold it to the collector for $100 it indeed would be an additional $99.99 income.

    2. Re:Face Value vs Ore Value by the_other_chewey · · Score: 1

      So lets say I take my pay check and head off to the bank and when cashing it, get a roll of pennies. Further suppose
      that one these pennies has some rare quality making it worth $100 to a collector... is that an extra $100 of Income?

      If you go on and sell it for that price, it very probably is, yes.

    3. Re:Face Value vs Ore Value by Rockoon · · Score: 4, Interesting

      Certainly in the scenerio where I actualy sell, the onus is on me to report income.

      If I don't sell, however... its just face value, right?

      In this story they go after the employer, regardless of the actions of the employees.

      This is a very complicated subject that begs a lot of questions. Can my bank post a $100 loss for their mistake in giving me a $100 penny? Can they post a $100 win if they hand me a counterfeit $100?

      --
      "His name was James Damore."
    4. Re:Face Value vs Ore Value by algerath · · Score: 1

      if you sell it for $100 yes, you should pay taxes on $100

      I think your argument would only work if the people getting paid were actually spending the gold coins at face value, which would be incredibly stupid.

      It is really no different than if the boss pays you in merchandise which you then sell, you can't then claim he never paid you with money so you owe no taxes, well I guess you can claim that but it won't work

    5. Re:Face Value vs Ore Value by twostix · · Score: 5, Interesting

      What they're terrified of is people going back to hard currency.

      He's being made an example of, it's that simple.

      It's a loophole that's protected by the US constitution. Gold and Silver are protected as legal currency and the federal government must supply and accept gold and silver tender. The only way around it is to amend the constitution - or scare people enough not to do it.

      If it became popular may also get people asking difficult questions like why a $30 coin is really worth $1000, or more to the point why a $1 federal reserve note can only buy 1% of the value of a $30 dollar coin.

      Such things are best not thought about by the plebs.

    6. Re:Face Value vs Ore Value by Anonymous Coward · · Score: 0

      No it's not really complicated at all.

      You must report as income the fair market value of the what you receive. If you were paid in goats, you must report the fair market value of the goats in the year you receive them. If you later sell them you may have additional income from appreciation.

    7. Re:Face Value vs Ore Value by Anonymous Coward · · Score: 0

      So lets say I take my pay check and head off to the bank and when cashing it, get a roll of pennies. Further suppose that one these pennies has some rare quality making it worth $100 to a collector... is that an extra $100 of Income?

      If you get a penny that is worth $100 then no, that is NOT considered an extra $100 of income when you receive the penny. If you were to take the penny and have it appraised by a collector and he told you it was worth $100 then it would still not be considered an extra $100 of income.

      *BUT* if you were to sell that penny to someone for more than the $0.01 face value then any amount over the $0.01 face value *WOULD* be considered extra income and taxable.

      So on the one hand we take Gold Coins and use the Ore Value, while on the other we take Quarters and use the Face Value.

      Of course. The value of the gold in the gold coin is worth far more than the face value of the coin assuming a pure gold coin. Even if the face value of the coin was accurate when it was struck the price wouldn't remain the same for long. I'm not sure of the value of the metals in a quarter these days but it probably isn't worth much more than a quarter if it exceeds the value by much (excepting things like collectible coins and actual siver quarters.)

      Now, on to the article...

      The man in the case this thread is about was paying employees with gold coins based on the value of the gold. No taxes were being withheld for the employees.

      This fellow is trying to game the IRS in order to not have to withhold taxes. He's doing this by A) pretending the employees are independent contractors so he's not required to withhold taxes, and B) pretending the face value of the coins (probably $50 American Eagles) means he's paying them less than the amount that would require the income be reported to the government.

      So to recap the man is attempting to value the coins at metal value for payment purposes and at face value for tax purposes. If the difference between the value of the metal in the coins was not greatly different from the face value he might get off with a slap on the wrist. Instead the face value differs from the metal value almost 20 times as of the moment I post this. As you can well imagine this isn't going over any too well with the tax man.

      It also isn't going over any too well with some of the folks who thought the fellow trying to game the government was some kind of hero for trying to "stick it to the man." Some of these folks apparently posted some rather intemperate if not downright angry remarks, perhaps even threatening remarks, regarding members of government and members of the jury. Remarks which led to the subpoenas mentioned in the article title.

      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.

    8. Re:Face Value vs Ore Value by rhsanborn · · Score: 1

      I'll leave this to the courts, but the issue has less to do with accidentally stumbling on a fortune like that, which you are obligated to claim in taxes if you sell. It has more to do with this individual taking these actions deliberately for the sake of tax evasion. It's not much different than paying one's employees in cash and not claiming it, except in this case he thinks he's clever and found a legal way to do exactly that. I suspect intent will be very important in this case.

    9. Re:Face Value vs Ore Value by ikkonoishi · · Score: 1

      If the employer is encouraging the employees to sell the coins for the value of the metal then I would say that yes he is responsible. He set up a BUSINESS of paying people with this system. Not just his employees, but also outside contracting agencies.

    10. Re:Face Value vs Ore Value by Chris+Mattern · · Score: 1

      Further suppose that one these pennies has some rare quality making it worth $100 to a collector... is that an extra $100 of Income?

      If you sold it to a collector for that $100, it most certainly would be. I'm little fuzzier on what it would be if you hung on to it, but I think the answer is probably yes.

    11. Re:Face Value vs Ore Value by Abcd1234 · · Score: 2, Interesting

      If it became popular may also get people asking difficult questions like why a $30 coin is really worth $1000, or more to the point why a $1 federal reserve note can only buy 1% of the value of a $30 dollar coin.

      Back in the day, American Indian's used a form of currency called Wampum. So, what was it? Valuable metal? Nope. Useful stones? Nope. Anything functional or "intrinsically" valuable at all? Heck no. It was *seashells*, strung like beads and worn around the neck, valuable only because the manufacturer of these trinkets was limited to one small group of Indians, thus introducing artificial scarcity.

      So, either those Indians understood something that those pesky "plebs" don't... or, maybe it's just you that's terribly confused. Believe it or not, currency is worth what people decide it's worth. That's it. After all, neither gold nor silver is terribly intrinsically valuable... we just think it is because, well, that's the tradition (not unlike, say, diamonds). I mean, sure, they make nice conductors, and have useful oxidation properties, but does that really make them worth what the market has priced them at (over $900 an ounce, in the case of gold)? I think not...

      So, whether it's a piece of paper, a coin of some arbitrary metal, or a piece of seashell, it's meaningful as currency only because we, as a group, say it is.

      Now, that said, some would claim that a currency based on some sort of limited resource (be it gold, silver, or <insert favorite thing here>) is a good idea, bringing up the ol' fiat currency boogeyman... 'course, those people don't understand the dangers of a fixed (or very slow growing) money supply in the world of expanding economies: deflation.

    12. Re:Face Value vs Ore Value by db32 · · Score: 2, Informative

      To me the whole thing seems pretty simple. He is paying employees with gold coins and trying to say they can only be taxed at face value. So if I write $5 on a brand new jet that I want to "donate" to a congress person should it only be declared as $5? That is f'ing stupid. These gold coins are not legal U.S. currency, so they should be treated at their value. Your quarter is worth that much because the government said so. In fact, this has been a problem in the past when certain metals in certain coins become more valuable than the face value because people would melt them down and sell it. So the government had to switch metals to make sure the face value is worth more than the materials used.

      What this guy did was unbelievably stupid and uninformed and he deserves to...oh wait...not anonymous...uhm...well he deserves to be punished by the law.

      The scenario you are describing is flawed in that noone tried to pay you based on that special value of the coin. However, if you sold that coin, you can bet any taxes due would be based on the value of the sale not the face value of the penny. However, if someone tried to pay you for a $100 job using a penny valued at $100 and said you only had to pay taxes on the $0.01 they would be stupid, and you would be stupid for believing them. If it became a regular thing you could easily wind up on the hook in a nasty tax evasion scenario...just like this guy did.

      --
      The only change I can believe in is what I find in my couch cushions.
    13. Re:Face Value vs Ore Value by Maximum+Prophet · · Score: 1

      The problem is that he was only doing reporting and withholding on the face value. Since he was probably buying the coins over face value, that's fraud.

      --
      All ideas^H^H^H^H^Hprocesses in this post are Patent Pending. (as well as the process of patenting all postings)
    14. Re:Face Value vs Ore Value by Chris+Mattern · · Score: 1

      It's a loophole that's protected by the US constitution. Gold and Silver are protected as legal currency and the federal government must supply and accept gold and silver tender.

      You know, you'd look less of a fool if you actually read the Constitution. The individual *states* are prohibited from making anything other than gold and silver coin legal tender. No such limitation is laid on the federal government.

    15. Re:Face Value vs Ore Value by itsdapead · · Score: 1

      So on the one hand we take Gold Coins and use the Ore Value, while on the other we take Quarters and use the Face Value.

      No: in both cases you take an honest and reasonable appraisal of the value of the object in question. For a regular quarter, however many bizarre and unlikely scenarios you contrive, the only honest and reasonable valuation is 25c. For a bullion coin, the honest and reasonable valuation is the metal value + any rarity value - no reasonable person would use a solid gold dollar to settle a $1 debt. Different things are worth different amounts - film at 11!

      is that an extra $100 of Income?

      Yes - you got lucky, but its still income, even if 99% of people would "forget" to declare the odd minor windfall like that.

      If, however, you somehow "knew" that roll of pennies would contain a rare coin then shenanigans are clearly afoot.

      --
      In a survey of 100 programmers, 111111 thought that duck-typing was a good idea.
    16. Re:Face Value vs Ore Value by clone53421 · · Score: 1

      He never said anything about other metals. I think you're reading the wrong inference from the word "protected". He wasn't claiming an exclusivity protection.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    17. Re:Face Value vs Ore Value by geekoid · · Score: 1

      You should read the story.

      "He also allowed workers to immediately exchange the coins for paper currency, as determined by the coins' investment value."

      Can't post a loss for something that wasn't accounted. Handing you 100 dollar counterfeit comes under a loss for them.

      Of course your scenarios are really tiny edge cases. Not really worth any practical value becasue in all the case both parties of the transaction are ignorant of what happened.

      The go after the emploer becasue he was intentional committing a crime.

      Even in the best case scenerio, he still acknowledge the metal value of the coin so he know he should ahve paid the tax.

      Now, if he paid a prevailing wage and paid the wage based on the stamped value of the coin and then had no other transactions? And it was printed after 1985? he might have a point. Of course if he did that he would lose money.
      This cas ein no way is about using hard currency or the 'feds' trying to protect the reserve or some other nonsense conspiracy crap. This is about someone thinking he had a clever scheme to avoid paying taxes. The article is kind of strange, and I suspect he was scamming his employees as well.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    18. Re:Face Value vs Ore Value by BigBlueOx · · Score: 1

      'course, those people don't understand the dangers of a fixed (or very slow growing) money supply in the world of expanding economies: deflation.

      For those of you who don't understand the above sentence or question the real disaster of a too small money supply, ask yourself "How much CASH does it take for WalMart and/or McDonald's to open their doors in the morning?". You gotta start out with $50.00 or so of change in each register, ya know. Just to start. Just to open.

      Now put that into Troy ounces of gold (or Mycenae ounces if you're a bandwagon jumper). Is there that much gold around? Hell, there might not be enough gold just to get the USA open in the morning much less beknighted backwaters like UK!

      (car analogy ... need car analogy ...)

      Money is what we say it is and it's the oil that lubricates the engine of the economy.

      (sits back, pleased)

    19. Re:Face Value vs Ore Value by networkBoy · · Score: 1

      one flaw in your argument:
      they *are* legal currency.
      no one uses them as such because their metal value is higher than their tender value, but legal currency they are.

      This guy's problem:
      his contractors sold the coins at metal value, not face value, then did not report the earnings, thus evaded taxes. He's being held accountable as inciting it (whether that's the party line or not).
      -nB

      --
      whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
    20. Re:Face Value vs Ore Value by Cyner · · Score: 3, Insightful

      They don't have to accept gold and silver. That part of the Constitution you refer to is Article I, Section 10 and says that States can't make anything currency except gold and silver (all other money is reserved to the Federal Government, hence the Federal Mints); nothing about what the government has to accept.

      What you're thinking of is that the dollar bill used to be backed by gold. Other nations could at any time they wanted trade money for gold (and vice versa) with the US government. The Smithsonian Agreement ended that however. The US Government no longer trades money for anything other than more money.

      What this guy did was try to pay his employees one amount and report a different amount. For example, he bought gold coins that had a face value of $100 for $500. He then gave the coins to an employee for a week's pay. His expense for that employee was $500; but he reported on the employee's W2 that the employee was paid $100. That's illegal. -- He argued that the face value of the payment method is all that matters. IRS operates on a Cash basis, what he paid for the employee is what he should report (employment taxes aside). This still leaves some room for a discrepancy based on the value of gold when he purchased it to when the employees were paid, any gain would have to be reported on the employee's tax return however.

      This comment is a personal opinion, it does not constitute legal or tax advice.

      --
      FreeBSD.org - The power to serve
    21. Re:Face Value vs Ore Value by Anonymous Coward · · Score: 0

      roll of pennies (face value) is about 50 cents.  100-0.50 != 99.99

    22. Re:Face Value vs Ore Value by LordActon · · Score: 5, Insightful

      What they're terrified of is people going back to hard currency.

      Terrified? Please. I suppose they're also terrified of all those Econ 101 students learning about what money is, what the value of an exchange is, what value is. Oh, no, I forgot: that's the indoctrination that keeps six billion people in the Matrix. Except for a few laser-eyed gold bugs, that is.

      The IRS collects tax on income. Lots of in-kind income is taxable just like cash. It should be, else non-cash income would have a tax advantage, and the whole economy would be encouraged to seek less efficient forms of payment. If you think that's a good idea, talk to my friend who, in Soviet days, got paid in shoes.

      Really, it's too bad your comment can't be scored +1 ignorant. Try learning some economics before having an opinion on it. Or at least have the humility not to open your mouth and remove all doubt.

    23. Re:Face Value vs Ore Value by TheNarrator · · Score: 1

      http://www.constitution.org/constit_.htm

      U.S Constituion Article 1
      Section. 10. No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

      If you look in your wallet at the dollar bills in there you will see plainly printed at the top of each of them "Federal Reserve Note". This is because they are a debt of the federal reserve, redeemable for $1. They are not "money" as defined in the constitution. It's not very well known, but control of the issuance of money was one of the most controversial issues of the 19th century in American politics. The coins this guys was using were circulated as "money" in the 19th century by the federal government at the face value of the coins. It's just that the money has been so debased over the years that the government says they are no longer money but collectibles, even though there isn't really any law stating that.

    24. Re:Face Value vs Ore Value by clone53421 · · Score: 1

      These gold coins are not legal U.S. currency, so they should be treated at their value.

      Eh? 31 USC 5103 states,

      United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.

      As American Eagles are minted by the U.S. Mint and include the motto, denomination, and everything else you'd expect to see on U.S. coinage, I don't see why they wouldn't be "United States coins".

      Feel free to find sources that prove me wrong.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    25. Re:Face Value vs Ore Value by Chris+Mattern · · Score: 1

      Actually, you read the wrong inference to my own post. My fault, I guess I wasn't too clear. The limitation on the states is the *only*, repeat *only* mention of gold or silver in the Constitution. Neither the federal government nor the states are under any obligation to recognize gold or silver as legal tender. The only limitation is that the *states* (but not the federal government) are prohibited from ordaining anything *other* than gold and silver legal tender. It is perfectly fine for the federal government to something other than gold or silver the exclusive legal tender and for the states not to add any thing else, which is the current situation.

    26. Re:Face Value vs Ore Value by Anonymous Coward · · Score: 0

      Gold and Silver are protected as legal currency and the federal government must supply and accept gold and silver tender.

      It all depends on how he paid the employees.

      For example, let's say that a $1 gold coin (face value) has a weight value of gold that is worth $2. Yes I know this isn't the right exchange rate, it's just for illustration.

      If I owe the person $100 in wages, I can't give them 50 of these coins and say they've been paid- I've only paid them $50 in legal tender, even though the coins could value at $100. So in that case they could report only being paid $50, because that IS all they were paid in legal tender.
      So I would have to give them 100 coins, which is worth $100. If that person then sold those coins to a collector for $2 each, the employee would have to report the extra $50 as income when taxes are due.

      If the employee accepts being paid in gold instead of currency, then I could give them 50 coins, but I'm using the coins as gold weight not currency, and as a result the employee would have to report it as $100 in income.

      So essentially what they were doing, was trying to pay the employee in gold weight, but report it as being paid as legal tender, which is illegal. You can do it one way or the other, but not both.

      It really has nothing to do with the government having to accept gold or silver... that is, in of itself, debatable, but if we assume you are correct there is still this issue- the government can determine the exchange rate however they want. So they could accept $100 in gold weight but only give you $1 for it, or they could give you $1,000 for it.

      I did a little searching, & what I found is that there is nothing that specifically says the government has to use or accept gold/silver for money. Congress has the power to mint money, the States are specifically prohibited from doing so, but the Supreme Court actually ruled at one point that there is nothing that says they have to use gold or silver for money. Which is why the Act that made paper money legal (most recently) says that our currency is now backed by nothing more than the full faith and confidence of the American people.
      Neither your bank, nor the federal reserve, has to give you the option of exchanging your paper money for gold or silver.

    27. Re:Face Value vs Ore Value by DragonWriter · · Score: 2, Informative

      Gold and Silver are protected as legal currency

      No, they aren't. States are expressly forbidden from making anything else legal tender for debts, but Congress is expressly granted the exclusive power to create money, and to regulate the value of all forms of money.

      and the federal government must supply and accept gold and silver tender.

      Nothing anywhere in the Constitution either requires the government to supply gold or silver coins as money, or to accept it as tender. Arguably, states are permitted to make gold and silver coin legal tender (expressly, Art. I, S. 10 forbids them to make anything else legal tender, and the express exception of gold and silver coin from that prohibition at least strongly implies that they are permitted to make those legal tender), but even if one or more states choose to exercise that right, nothing in the Constitution would bind the federal government to that state action.

      If it became popular may also get people asking difficult questions like why a $30 coin is really worth $1000, or more to the point why a $1 federal reserve note can only buy 1% of the value of a $30 dollar coin.

      You are contradicting yourself. $1 is not 1% of $1000. But, anyhow, Congress authority in Art. I, Sec. 8 to dictate the legal value of money is express; that any non-vacuous exercise of such power necessarily will result in differences between the relative legal values of some forms of money and their relative commodity values is fairly obvious.

    28. Re:Face Value vs Ore Value by hesaigo999ca · · Score: 1

      I agree that we should question these things, although they are more common sense then anything else, the gold/silver does not fluctuate the same as a country's economy, and all countries recognize gold in some way shape or form, where as money from one country may not be recognized in another country. This is the sole reason to keep a sort of balance between all countries.

      If we in turn try to mess with that equation inside our country, because of a loop hole, I tend to believe that country will seek to discourage ( even make an example ) of such cases to deter this from happening. However nothing stops you from melting down the nickel in your basement then reselling it...
      except getting caught. He got caught, or was brazen about it.

    29. Re:Face Value vs Ore Value by clone53421 · · Score: 1

      No, I pretty much got all that. My point was, you seemed to think that he claimed the government can't issue non-gold/silver coins, and he didn't. He was just arguing that, since the U.S. Constitution says the coins are legal currency, the Federal Government has to accept them as such.

      The Constitution says that states cannot declare anything other than gold/silver to be legal tender.

      The Constitution does not say that the Federal Government can't.

      The Constitution also does not (explicitly) say that states can declare gold/silver to be legal tender, however, since states are not prohibited, they're allowed (that's how the Constitution works). Note that this would only apply to a state minting its own gold or silver coinage, which none of them do. Coinage authorised by the Federal Government (e.g. minted by the U.S. Mint, which isn't a governmental entity but is authorised by the government to issue currency) would, I presume, be forced on the states because the Federal Government said it's legal tender and the states don't have the right to say no it isn't.

      However, near the end you said that, in the current system, gold and silver are not legal tender. That's incorrect. American Eagles are legal tender.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    30. Re:Face Value vs Ore Value by db32 · · Score: 1

      You are correct. I did not see that these coins were still legal to be circulated and not retired currency. However, this guy's problem is that he did not withhold taxes from the employees pay and then told them that they could claim them at face value rather than real value. This still seems like a fairly clear case of tax evasion even if circulating the coins themselves were legal. From what I gather he was doing this to deliberately dodge the tax implications so he could pay them $X in value and claim $Y in taxable income and keep the whole mess off his books by not withholding taxes himself. Coupled with his views about the Federal Reserve and so on... well... I disagree with how things are run too, but I pay the damned taxes as the law says...so as far as I am concerned this guy can...be punished by the law...

      --
      The only change I can believe in is what I find in my couch cushions.
    31. Re:Face Value vs Ore Value by ancientt · · Score: 1

      Note that this would only apply to a state minting its own gold or silver coinage, which none of them do. ... However, near the end you said that, in the current system, gold and silver are not legal tender. That's incorrect. American Eagles are legal tender.

      Inflation is coming. Inflation is always coming eventually, but there is a current trend of economists to believe that the national debt combined with deficit spending is going to drive a significantly higher rate of inflation in the near future than the US has seen in many years. Inflation is pretty much nullified if what is accepted as money has intrinsic value close to the face value. If the wave of inflation hits at the level predicted by the doom and gloom mongers, then I predict that some states will issue gold and silver coins. It should make for interesting times.

      --
      B) Eliminate all the stupid users. This is frowned upon by society.
    32. Re:Face Value vs Ore Value by Anonymous Coward · · Score: 0

      To talk about ignorance and learning before having opinions, they never paid in "shoes" back in Soviet days---the practice started with transition to the market.

    33. Re:Face Value vs Ore Value by ae1294 · · Score: 1

      withhold taxes from the employees pay

      He didn't have employees... They where all independent contractors. They where responsible for declaring their own income not him. The IRS HATES when you declare people as independent contractors and will sue you into jail even though it's perfectly legal...

    34. Re:Face Value vs Ore Value by jonatha · · Score: 1

      This is not an appropriate model. You should be asking "if my employer pays me in pennies and one of those pennies has some rare quality making it worth $100 to a collector ... is that an extra $100 of income?" The tax law is fairly clear - yes, it is an extra $100 of income, whether you sell it or not.

      --
      The SCO lawsuit makes me wish my company were in Utah. We need a new building.
    35. Re:Face Value vs Ore Value by mattwarden · · Score: 1

      That would be capital gains and is taxed differently.

    36. Re:Face Value vs Ore Value by mattwarden · · Score: 1

      We all get what he was trying to do. The point is that the US is minting a legal coin that is worth $50. The fact that people in the market will pay a lot more for these $50 coins is not relevant.

      Pennies and nickels are worth more in metal than they are at face value (which is why there are laws making it illegal to melt them down). Do I need to report the elevated materials value or the face value?

      It doesn't make sense, and this guy is exploiting inherent contradiction in the law.

    37. Re:Face Value vs Ore Value by mattwarden · · Score: 1

      The value of those shoes can't be destroyed by the government printing presses. I don't understand your comment implying parent has no economic understanding. It sounds like his understanding of economics is what is driving his issue with paper currency.

    38. Re:Face Value vs Ore Value by Cyner · · Score: 1

      Yes, but if you accept the consideration (gold coins in this case) as being worth more than face value, and in lieu of more paper money, then you are being paid the instrinsic value of the consideration and can not report the face value as your compensation.

      A better example would be if someone paid you in horses. If you recieved 100 horses for working at your job your W2 does not state 100 Horses, it would state the approximate value of the horses.

      The problem here is that people are under the perception that it somehow matters that the gold coins came from the US Mint. The IRC does not make a distinction; it only cares about value.

      --
      FreeBSD.org - The power to serve
    39. Re:Face Value vs Ore Value by LordActon · · Score: 1

      The value of those shoes can't be destroyed by the government printing presses.

      Yes, but their illiquidity makes them a poor medium of trade.

      I don't understand your comment implying parent has no economic understanding. It sounds like his understanding of economics is what is driving his issue with paper currency.

      I'm sure you're right, on both counts.

      The OP is flat-out wrong regarding the constitution. The word "gold" appears exactly once, prohibiting the states from coining their own money. It's left to congress to "coin money and regulate the value thereof", full stop. Simple words, not scare tactics.

      It's impossible to explain even a tiny part of one Econ 101 lecture in a /. comment. Reference material isn't hard to find for anyone interested enough to want to learn.

      The value of money, like anything else, is subject to supply and demand. As the economy grows — through population and productivity — the money supply has to growth with it. If it doesn't, the value of money increases, which by definition is deflation. (Even gold bugs have to agree with that proposition because they're always the ones talking about the opposite: "debasing" the money i.e. inflation.)

      Deflation is a whole subject its own. The basic problem is that banking stops because interest rates are (again, by definition) negative, and no one will deposit money in an account that pays negative rates. It also means your mortgage payments effectively increase, because the bank has the money and you're selling your crops (or earning your wage) at ever-decreasing rates.

      The basic problem with the so-called gold standard is that there's only so much gold. The gold supply can't grow with the economy, forcing deflation and its attendant deleterious effects. That effect is more pronounced the faster the economy grows. In the 19th century the US economy experienced high growth — through both immigration and productivity growth as a function of the Industrial Revolution — and in fact suffered four depressions (culminating of course in the Great Depression early in the 20th). These were all in part attributable to the inability (and lack of understanding for the need) to increase the money supply.

      But don't take my word for it. We haven't had a depression since 1937. Living standards have improved, measurably, in many ways. The system has flaws, sure, but it works. By contrast, no country has a gold standard today. That doesn't mean it's untested; it was tested by many countries over many years, including by the US. And was found not to work! A simple, obvious, plain fact the gold bugs choose to ignore.

    40. Re:Face Value vs Ore Value by mattwarden · · Score: 1

      The difference is that the government has already valued these coins at $50. Again, I go back to the penny example. A penny is 1 cent for tax purposes, even though the material is worth more than 1 cent. According to the US government $50 of paper money and $50 in gold coins are the same amount of currency, therefore it doesn't matter whether the workers were paid in the paper version or the coin version of $50.

    41. Re:Face Value vs Ore Value by mattwarden · · Score: 1

      Where does it say in the Constitution that the private banking system has the power to create money?

      The rabble about banking ceasing when there is deflation is rubbish. In a capitalist economy, there is supposed to be gradual deflation because we become more efficient in producing the same goods, so prices fall gradually and steadily. This has nothing to do with loaning, although it would affect the nominal (but not real) inflation rates. Loans are based on the time value of money, which (again, real not nominal) is based on how much I want in order to tie up my capital for x months and how likely I am to get it all back. That has nothing to do with the future value of the currency.

      The manipulation of the money supply is a trick government is playing in order to make asset look like they are constantly appreciating. They are not. Only one asset (the dollar) is depreciating. That has only one real effect: it punishes every saver, and rewards every debtor... including the US government and their $53,000,000,000,000 in debt.

    42. Re:Face Value vs Ore Value by LordActon · · Score: 1
      The rabble about banking ceasing when there is deflation is rubbish.

      It's true and it's simple. Suppose it's January and $10 is worth $10. You put your money in the bank. In December, $10 is worth $9 — nominal, of course. The bank collects its, say, $0.90 leaving you with $9.10. That's fair, right? An 11% real return? Deflation allows your $9.10 to by ten cents more than the $10 + time-value-of-money you deposited.

      Only one problem: no one will do it. They'll hold onto their $10 and collect the 90 cents in profit while prices are declining. No deposit, no return, no lending, no borrowing, no banking. I'm not making it up: it happened. That's what a banking crisis is, or at any rate (so to speak) what they used to be.

      Look, it's only math. You're welcome to believe whatever you want. But if you want to understand what you're talking about instead of making vacant assertions about the government's trickery — that only you and your ever-so-clever friends see through — then do yourself a favor and go find out about it. It's written down. You could read about it in the library should you ever darken the door.

    43. Re:Face Value vs Ore Value by mattwarden · · Score: 1

      Your example is unintelligible, I think due to a couple typos and the lack of any indication of which dollar figures are real and which are nominal. If you care to reformulate, I'll respond.

      But feel free to mock. To say that manipulating the money supply in order to cause nominal prices to seem to rise in opposition to real deflation from increases in efficiency isn't trickery is a bit odd. From what I could make of your very explanation, the whole intent of this practice is psychological.

    44. Re:Face Value vs Ore Value by LordActon · · Score: 1

      $10 BOY deposit

      $9 = $10 * (1.0 - 0.10) => value of $10 after one year with -10% change in price level (deflation).

      $1 = $10 - $9 => nominal loss in value.

      -9% => the bank's advertised APR.

      $9.10 = $10 * (1.0 + -0.09) => EOY nominal value, what's in your account.

      11% = $9.10 / $9.00 => your real return.

      Simplifying somewhat, a real return Nominal - Inflation. If inflation is 4% and nominal interest is 7%, the real return is 3%. If inflation is -4%, and nominal 7%, the real return is 11%. To get a real return of 3% when inflation is -4%, nominal is -1% (because 3% = -1% + -4%).

      That's the math: the bank pays you a premium over the prevailing changes in the price level — a real return — in exchange for your money. The problem is that you, as the holder of the original $10 in my example, are better off not depositing your money. If you accept the bank's deal, you're left with $9.10. If you ignore the bank, you're left with $10. And $10 beats $9.10 any day of the week, come inflation or deflation. Most people figure that out pretty soon when faced with the prospect, and banks quickly become unable to attract deposits. Etc., etc.

      There is no such thing as real deflation from increases in efficiency. Change in the price level, inflation or deflation, is a monetary phenomenon. It's a function of the amount of money chasing the amount of goods and services produced. Holding the money supply constant while the economy grows (or shrinks) is no more "real" than changing the money supply while the economy is unchanged.

      What I'm saying is very simple and uncontroversial: the money supply must grow with the economy, else there is deflation, and deflation is unsustainable due to the asymmetry in how interest works in the banking system. It is not a matter of trickery or psychology; it is a recognition of how people behave in the real world.

      And, speaking of the real world, I'm also making an unassailable objective case: gold standards were tried and failed over the centuries, and today no government anywhere uses one. If you want to believe that's because governments everywhere prosper by deceiving the governed, I can only point out that they didn't used to.

    45. Re:Face Value vs Ore Value by mattwarden · · Score: 1

      > There is no such thing as real deflation from increases in efficiency.

      This is incredibly incorrect. If you simply convert the average dollar prices of goods into average hours worked and compare prices in work-hours over the last century, there is a HUGE price deflation that was consistent and gradual over that century. This made us all richer because our time could buy many more goods.

      > Change in the price level, inflation or deflation, is a monetary phenomenon.

      No, this is the manipulated effect. The natural effect is due to falling prices as inputs become cheaper and competition maintains or decreases the profit margin.

      > It's a function of the amount of money chasing the amount of goods and
      > services produced. Holding the money supply constant while the economy
      > grows (or shrinks) is no more "real" than changing the money supply
      > while the economy is unchanged.

      No, it's not the same thing. Inflating the money supply punishes savers and rewards debtors. It is not a huge conspiracy; it is the government's short-sightedness and officials' understanding that they will be ousted when GDP growth falls. It's very logical from their standpoint. But between the erection of safety nets and the depression of interest rates by the FDIC and the Fed and the inflation of the money supply, we either spend or have our savings destroyed. It is no coincidence that savings rates were at 12% in the 80s and negative 1/2% at the height of our most recent bubble. If our savings rates were still at 12% at the time of the crash (if there even would still be a crash), we would not be in nearly as bad shape.

    46. Re:Face Value vs Ore Value by LordActon · · Score: 1

      > Change in the price level, inflation or deflation, is a monetary phenomenon.

      No, this is the manipulated effect. The natural effect is due to falling prices as inputs become cheaper and competition maintains or decreases the profit margin.

      I can't help you, Matt. You think you know what value is. You think inflation a priori punishes savers. You questioned my math and then didn't refute it. You don't bother to address how banks can operate during deflation. You don't seem to realize why deflation led to farms being repossessed during the depressions 1800-1939. You don't consider that your "solution" has been discredited after widespread historical experience. Your answers are not even wrong.

      Here's a basic question: Why is -1% inflation better than +1% inflation? Does the answer change if we double the rate repeatedly?

      No industrialized economy has ever stayed on the gold standard. Elected/unelected, capitalist/communist, east/west: Nyet. It's not because of shortsightedness. It's because deflation sucks. You can fight that and dispute it all you like. I tried to illustrate for you why it sucks. This idea you have that there's something natural about economic activity, that's it's not a manmade phenomenon subject to chaos theory, is just gold bug claptrap, nothing more.

  16. YES! by gEvil+(beta) · · Score: 2, Funny

    ...is anonymous commenting still worth it, or is it just too risky for the board owners?

    Absolutely!

    Posting AC so they don't find out who I am.

    --
    This guy's the limit!
    1. Re:YES! by Anonymous Coward · · Score: 0

      Fail

    2. Re:YES! by Anonymous Coward · · Score: 0

      *whoosh*

  17. the fine print... by Anonymous Coward · · Score: 0

    The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.

  18. Hypocritical? by asdfndsagse · · Score: 1

    So now if I pay a debt to a store in quarters I only have to pay sales tax on 13% of the face value as the quarter melt value is only 3.25c?

    http://www.coinflation.com/coins/1965-2007-Washington-Quarter-Value.html

    1. Re:Hypocritical? by Chlorine+Trifluoride · · Score: 1

      Quarters, unlike gold coins, are legal tender.

    2. Re:Hypocritical? by vlm · · Score: 4, Informative

      Quarters, unlike gold coins, are legal tender.

      Blatantly, outright, not even close, missed by a mile, false. 10 seconds on wikipedia:

      http://en.wikipedia.org/wiki/American_Gold_Eagle

      Refers you to the US mint government webpage:

      http://www.usmint.gov/downloads/mint_programs/am_eagles/AmerEagleGold.pdf

      Here's a direct quote from the first page of this US MINT government issued document:

      "They're also legal tender"

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
  19. Face value by kimvette · · Score: 4, Insightful

    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.

    Both the IRS and Kahre are in the wrong here.

    The Government is required by LAW to recognize American currency at face value. They have no choice in the matter. The government's isregarding face value of "legal tender for all debts, public and private" is illegal. The government issued that currency (or authorised its issuance) for the face value and require it to be accepted as such so they have no legal choice but to accept it for the value they declared it to be.

    However, if he wants to play the "face value" defense, which is legitimate (he should win that case) what he should be charged with is violating the federal minimum wage laws, not tax evasion.

    What he and his employees engage in is tax avoidance, which is perfectly legal. Tax avoidance is simply following the letter of the law and avoiding the incurring tax liability. Practically every politician engages in avoidance. Things such as claiming one's standard exemption, creating a shell company and having it lease one's vehicle for business purposes, and so forth. If I ever make the kind of money where it makes sense to do so, you bet your ass I would hire a tax lawyer and take advantage of the law to the my benefit. The tax code is needlessly complex for three things: to keep lawyers busy and make them rich, for social engineering (keep citizens in line by making them accept government control), and to benefit politicians who create hard-to-understand loopholes for their own use.

    --
    The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
    1. Re:Face value by kimvette · · Score: 2, Insightful

      "It's not whether what Mr. Kahre did was legal under the law," defense attorney Michael Kennedy told the jury in his opening statement. "It's whether he believed what he did was legal," in the absence of explicit instructions by the IRS -- on its Web site, in its publications or in response to written correspondence from Kahre -- on how to value post-1985 gold or silver coins.

      Rephrased, what Kennedy is saying is this: "It's not whether it's legal or not, it's whether we want to fuck the taxpayer or not."

      --
      The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
    2. Re:Face value by Greger47 · · Score: 2, Interesting

      The Government is required by LAW to recognize American currency at face value. They have no choice in the matter. The government's isregarding face value of "legal tender for all debts, public and private" is illegal. The government issued that currency (or authorised its issuance) for the face value and require it to be accepted as such so they have no legal choice but to accept it for the value they declared it to be.

      If I pay someone with a $20 bill and a lump of gold and then try to make the case that the employee only made $20, the IRS would come down on me like a ton of bricks and I would be laughed out of court.

      In this case the goverment was stupid enough to stamp a $20 sign on a lump of gold, but that still doesn't change the fact that the employee receives a lot more wealth from me than $20 when taking the coin.

    3. Re:Face value by elrous0 · · Score: 1

      That would be true if we were all a bunch of mindless zombies and the law was a completely clear and undebatable codex that needed no real-world interpretation. In the REAL world common sense can, does, and should play a role in the law and its interpretation. This sort of "letter of the law" mentality is what leads to stupid shit like kids getting expelled from school for bringing plastic knives in with their lunch (because TECHNICALLY they did indeed "bring a knife to school"). What it comes down to this case isn't "Was he technically following the exact letter of the law?" It comes down to "Would a jury of reasonable peers conclude that this man was willfully engaging in tax evasion?" And I think it's clear that the answer to the latter question is, in the mind of anything resembling a reasonable human being, a resounding "Yes."

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
    4. Re:Face value by Anonymous Coward · · Score: 0

      In this case the goverment was stupid enough to stamp a $20 sign on a lump of gold, but that still doesn't change the fact that the employee receives a lot more wealth from me than $20 when taking the coin.

      Actually it does. When it's authorized as legal tender, it has either face value, or raw material value. In this case, the raw material is more valuable than face value.

      There would be no difference if paper became as rare and valuable as gold and the feds started printing money on cloth. Paper money would then have the legal tender value authorized by the government, and the inflated raw material value.

    5. Re:Face value by Maximum+Prophet · · Score: 1

      The Government is required by LAW to recognize American currency at face value.

      Only paper money is "legal tender for all debts, public and private".

      Coinage is different, under a different set of laws.

      --
      All ideas^H^H^H^H^Hprocesses in this post are Patent Pending. (as well as the process of patenting all postings)
    6. Re:Face value by Anonymous Coward · · Score: 0

      Funny, because a piece of paper stamped with a 20 is worth something, but without is worth little or nothing. Why is monetary value derived from the little stamped in some cases and not in others? Because it's convenient for the government at the time? No, this guy just found a loophole in the law and took advantage of it.

      Do you know how many people have "company" cars and get their company to pay for their gas, cell phone, and internet? Yeah, pretty much every business man.

      The sooner you accept that the tax code is broken and fully exploited the sooner you will realize how much you've been fucked over in the past.

    7. Re:Face value by Anonymous Coward · · Score: 0

      How much did he pay for the "$50" coins? That's the approximate value the employees were receiving as renumeration. If the employer got them for $50 from the government, that's fine. That's what was being paid out. But from checking around, these are 1 ounce of gold and the coins currently go for about $900-$1000 (and the price hasn't been below $500 in years). That was the value being handed over to the employees, not the stamped-on "$50". Handing over something worth about 20x "face value" and then claiming employees could do their taxes with the face value as their "income" is a creative bit of tax "avoidance" indeed, but all the employer did was transform 20x the money into something labeled much lower. Everybody knows the value is far more, employee included. As you say, if it really was worth only that much, the employee was being underpaid and the employer is in trouble for other reasons.

      From the original article: "It's whether he believed what he did was legal ... on how to value post-1985 gold or silver coins"

      I mean, who in the hell would honestly believe the coins were worth 20x less if the guy had just paid $900-1000 to buy them on the open market?

    8. Re:Face value by twostix · · Score: 2, Insightful

      No if you're paid with $20 in government currency then as far as the government is concerned you received $20 in wealth.

      Otherwise it works the other way too and this $100 dollar paper note is only "worth" 1 cent and should be taxed as such.

      Oh that's right, for some insane reason people always come down on the side of the government.

      Perhaps you should ask *why* the government is stamping $30 on legal tender that actually costs 1000 $1 federal reserve notes (and counting). These gold coins are not "special" collectors items, they are cold hard cash minted by the hundreds of thousands and hold enormous amounts of wealth.

    9. Re:Face value by Anonymous Coward · · Score: 0

      It is also illegal to deface legal tender. So in essence, melting it down and selling it as a pure metal would be illegal.

    10. Re:Face value by Curunir_wolf · · Score: 1

      That would be true if we were all a bunch of mindless zombies and the law was a completely clear and undebatable codex that needed no real-world interpretation. In the REAL world common sense can, does, and should play a role in the law and its interpretation. This sort of "letter of the law" mentality is what leads to stupid shit like kids getting expelled from school for bringing plastic knives in with their lunch (because TECHNICALLY they did indeed "bring a knife to school"). What it comes down to this case isn't "Was he technically following the exact letter of the law?" It comes down to "Would a jury of reasonable peers conclude that this man was willfully engaging in tax evasion?" And I think it's clear that the answer to the latter question is, in the mind of anything resembling a reasonable human being, a resounding "Yes."

      BZZZZZT! Sorry, massive fail. Tax code is all about the letter of the law. That's why people pay tax accountants and tax attorneys all the time to help them find those loopholes. Perfectly accepted behavior of the rich and politicians (although it seems a lot of politicians lately have been trying to use loopholes that really aren't there).

      These guys aren't wealthy or powerful politicians - they are working people that found a loophole for themselves. I applaud them for it. This is more like a case of malicious prosecution, as this is not the first time Bill Cohen has tried to put these guys in jail - they were acquitted last time for using exactly this avoidance procedure.

      --
      "Somebody has to do something. It's just incredibly pathetic it has to be us."
      --- Jerry Garcia
    11. Re:Face value by teg · · Score: 1

      Rephrased, what Kennedy is saying is this: "It's not whether it's legal or not, it's whether we want to fuck the taxpayer or not."

      Actually, Kennedy is the defense attorney - not the (justified IMNSHO) IRS lawyer. Kennedy is saying "it's not whether it's tax fraud or not, it's whether he thought he could get away with or not".

    12. Re:Face value by itsdapead · · Score: 1

      The Government is required by LAW to recognize American currency at face value.

      So, say you've been paid in gold coins with a total face value of $50. Say you owe me $45. Give me one of those "$50" coins, I give you a 5 buck note in change and we're sorted.

      Happy?

      No?

      You mean that you're fully aware that the actual value is vastly more than the face value? That means that you're fully aware how much you're really being paid - and its not as if "payments in kind" etc. are exempt from tax. The fact that you could use a $50 gold coin to settle a $50 debt is irrelevant. If you insisted, I'm sure the IRS would be delighted to accept gold coins, at face value, as settlement for your tax bill.

      Or, to look at it another way, if you're paid with a "$50" coin worth $1000 then by all means put on your tax form that you're getting $50 cash + other considerations to the value of $950 and see if it changes your bill.

      --
      In a survey of 100 programmers, 111111 thought that duck-typing was a good idea.
    13. Re:Face value by geekoid · · Score: 1

      Incorrect.
      "The Government is required by LAW to recognize American currency at face value. They have no choice in the matter."

      For gold and silver coins after 1985, you are correct. That is not the issue at all.

      Read the article, he was turning around and buying the coins at the metal value. The is a clear scam becasue you pay taxes on the value of the item and since his intention and action indicate that his expected value of the gold was it's metal value NOT stamped value.
      If he was just paying the coins, you would ahve a point; however that would never come to trial because it is in no way practical or cost effective to do that and he would soon be out of business.

      The American tax code is not that complex at all. Seriously, it isn't.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    14. Re:Face value by Botia · · Score: 1

      It sounds like they are both right here as well. Tax law dictates that employees should be taxed on the value of items given to them in exchange for work. For example, if an employee is given a nice DLR camera as a Christmas bonus, that employee would be taxed on the value of the camera. The same could be applied to the coins as their value far exceeds their face value. The simple solution is to get rid of income tax, as it was only meant to be temporary during the war.

    15. Re:Face value by rpervinking · · Score: 1

      Please cite chapter and verse on this. Specifically the part where it talks about the value of compensation passing from one person to another when the compensation is a form whose market value is HIGHER than the face value of the coin. After all, it's easy enough to believe you if you were claiming that the IRS would be required to accept 20 gold coins each stamped "Five Dollars" in payment of your $100 tax bill. No change, thanks. My guess is that you'd better show up with a lawyer to help keep you out of the loony bin if you tried that stunt, because they'd think you were crazy to overpay by that much. But I simply don't believe that the requirement is that the government is required to take face value as the MAXIMUM value represented by compensation in this form. If you can quote chapter and verse to that effect, and also, preferably, point to professional credentials in this field, fine.

    16. Re:Face value by vlm · · Score: 1

      What he and his employees engage in is tax avoidance, which is perfectly legal. Tax avoidance is simply following the letter of the law and avoiding the incurring tax liability. ........ If I ever make the kind of money where it makes sense to do so, you bet your ass I would hire a tax lawyer and take advantage of the law to the my benefit.

      It's not that complicated, or expensive, dude. For example, you pay a higher cap gains tax rate on assets owned more than a year (long term rate vs short term rate). So, given the choice of selling stock after owning it 364 days or after 367 days, I'd wait the three days.

      Another way is to offset cap gains with realized cap losses. Lets say you're retired and some investments made money, some lost. Well, when you cash in the winners, make sure to cash in the correct ratio of losers, so as to have a net cap gain of zero, thus no tax need be paid. Worst case would be to sell all the winners and pay a nice high tax, and next year sell all the losers and have an immense capital loss that exceeds your ability to apply to your taxes.

      If you can itemize, you don't have to pay income tax on money paid to the bank as mortgage interest (paying down principle has no effect, beyond obviously paying less interest next year). So, if you own a home and itemize (Schedule A) you are pretty much by definition a "tax avoider" since you could pay taxes on your mortgage interest merely by not itemizing Schedule A.

      Also any time you decline to participate in commerce because the taxes would eliminate the profit, you are a "tax avoider". So, if you have the option to buy property, and its all profitable until you add in the high property taxes, so you don't buy the property, you are a "tax avoider". Same with not smoking, not drinking, not buying much gasoline.

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    17. Re:Face value by Anonymous Coward · · Score: 0

      You're in agreement: Cheating paying taxes does indeed screw the other taxpayers.

    18. Re:Face value by clone53421 · · Score: 1

      However, if he wants to play the "face value" defense, which is legitimate (he should win that case) what he should be charged with is violating the federal minimum wage laws, not tax evasion.

      Do minimum wage laws apply to prices charged by contractors (which is how they were hired, to avoid withholding taxes)?

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    19. Re:Face value by clone53421 · · Score: 1

      Just Plain Wrong.

      31 USC 5103

              United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.

      Oh, and American Eagles are legal tender[.pdf].

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    20. Re:Face value by clone53421 · · Score: 1

      They're legal tender.

      The people who broke the law (and yes, income tax laws were broken, but not by this guy) were his employees.

      They received $50 coins at face value. Since they're legal tender, I really can't see a valid (legal) case against that. However, if they sold the coins, that should have also been reported as income (sale price minus the $50). Failing to report that was tax fraud, but the guy they're trying to peg for this could claim innocence of that. What the employees did with the coins is none of his concern.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    21. Re:Face value by clone53421 · · Score: 1

      Sure, but why would you do that?

      American Eagle coins are guaranteed to standards of weight and purity. Any other lump of gold would have to be tested and weighed before its value could be determined.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    22. Re:Face value by Red+Flayer · · Score: 1

      Oh that's right, for some insane reason people always come down on the side of the government.

      It's not insane at all. It's self-interest.

      We all (w/ exceptions of course) pay taxes in exchange for government services.

      When someone "cheats" on their taxes (whether it's evasion or avoidance), our proportionate share of the expense of government services is increased.

      I'm siding with the government on this issue because it's in my own self-interest that stupid tricks can't be used for you to avoid paying your fair share of taxes. It's not insane -- it's rational. What's insane is for someone to think that people who don't cheat the system should, for some reason, support those who do cheat the system.

      And from a philosophical standpoint, theoretically the government is an expression of the wishes of the people to live by an accord. Yes, we all fight over how that accord is enforced, how it operates, and what it does -- but cheating the accord for personal gain is a violation of community accord. It's an action that deserves ostracism, at the very least.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    23. Re:Face value by Anonymous Coward · · Score: 0

      His workers were independent contractors... not employees. If that defense held up in court, then there would be no violation of federal minimum-wage laws.

    24. Re:Face value by david_thornley · · Score: 1

      If the tax code is all about the letter of the law, shall I assume that everybody making sonorous pronouncements about it here is a tax lawyer?

      In any case, it's irrelevant.

      Whether what the defendent is accused of by the prosecution is a violation of the tax code is a question of law, and hence to be settled by judges. Exactly what he did is a matter of fact, to be settled by a jury. (In practice, juries do interpret the law to some extent, and cannot be held liable for rendering verdicts not according to the law.) Therefore, threatening the jury would seem to be irrelevant to the tax code.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
    25. Re:Face value by noidentity · · Score: 1

      What he and his employees engage in is tax avoidance, which is perfectly legal. Tax avoidance is simply following the letter of the law and avoiding the incurring tax liability.

      Sometimes I decide not to buy something due to the tax. For example, a $5 product costs $5.41 with tax. I guess I'm guilty of tax avoidance too...

    26. Re:Face value by Curunir_wolf · · Score: 1

      Whether what the defendent is accused of by the prosecution is a violation of the tax code is a question of law, and hence to be settled by judges. Exactly what he did is a matter of fact, to be settled by a jury. (In practice, juries do interpret the law to some extent, and cannot be held liable for rendering verdicts not according to the law.) Therefore, threatening the jury would seem to be irrelevant to the tax code.

      I'm not real clear what you're responding to, here. The case is not about jury threatening or anything, that's just an ancillary issue ultimately caused by justified fear and loathing of the IRS, that lead some folks to make unjustified comments about the jury, and the prosecutor going off on a tangent because he thought he smelled a new case he could drum up against someone.

      In fact the case won't even revolve around the tax code - that's not really at issue. The case is about whether the defendants thought their actions were allowed under the tax code, and were knowingly lying and running a criminal enterprise. It's probably going to be a tough sell to any jury, since the IRS seemed to be okay with the idea, or at least unsure about it. Besides, they have been doing this for many years, and were dragged into court about it before and were cleared of all charges.

      --
      "Somebody has to do something. It's just incredibly pathetic it has to be us."
      --- Jerry Garcia
    27. Re:Face value by KiahZero · · Score: 1

      The fair market value of the gold coins is more than the $20 printed on the face, as demonstrated by Kahre's willingness to purchase the coins for more than that value.

      The fair market value of a $100 bill, on the other hand, is exactly $100.

      --
      I'm a lawyer, but not yours. I wouldn't represent someone who thinks taking legal advice from Slashdot is a good idea.
    28. Re:Face value by Maximum+Prophet · · Score: 1

      When some guy tried to pay a debt (ex-wife I think) with a barrel of pennies covered in molasses, the court decreed that you could only use so many coins. I don't know that they've said anything about one dollar bills in honey, but hey I'm sure that's not ok either.
      Here's a similar case: http://www.uslaw.com/library/Family_Law/Husband_pays_alimony_pennies.php?item=246976

      So, despite the legislation, only some amount of coins are legal for some part of a debt.

      --
      All ideas^H^H^H^H^Hprocesses in this post are Patent Pending. (as well as the process of patenting all postings)
    29. Re:Face value by clone53421 · · Score: 1

      That judge was an idiot, and his ruling was contrary to federal law, which specifies that coins are legal tender and nowhere says that there is a limit. The appropriate action is to fix the law, if you think it is broken, not make up imaginary rules in a courtroom.

      Not that courts changing the law is anything new, though...

      Anyway, I'll see your case and raise you one...

      If you don't want to read the whole thing, basically in the end the judge admitted the defendant had "complied by taking legal tender there of $1,000 by the deadline" and then fined him $533 anyway (representing time, court costs, and the redemption fee to have the pennies converted to a check).

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
  20. Snail mail threat == Clear and present danger. by TapeCutter · · Score: 4, Insightful

    Sending someone a snail mail death threat implies you know who they are and where they live. Going to the trouble of a physical cut and paste from magazines implies you are willing to expend time and effort on your threat.

    --
    And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    1. Re:Snail mail threat == Clear and present danger. by sumdumass · · Score: 4, Insightful

      It's deeper then that. It's that we have to protect the people we force to do the dirty work for us against any reasonable threat. We have long recognized the necessity of investigating any threat to see if it was some blowhard letting steam out or someone capable of committing harm. It doesn't help that the names and addresses of Jurors are generally publicly availible too.

      It might be a different story if it was an all volunteer process but it isn't. If you register to vote, you are automatically placed into the jury pool and you can't get out of service easily. I generally claim I support jury nullification and don't have to sit on a trial, but others don't pull stunts like that so they are stuck with the jury duty as a result of expecting to have a voice in their community, state, and country with the right to vote.

    2. Re:Snail mail threat == Clear and present danger. by bitt3n · · Score: 1

      Going to the trouble of a physical cut and paste from magazines implies you are willing to expend time and effort on your threat.

      or you just have a curious fascination with arts and crafts

    3. Re:Snail mail threat == Clear and present danger. by Anonymous Coward · · Score: 1, Interesting
      Perhaps they want to serve on the jury because they recognize that their voice on the jury matters too?

      The jury box is the last box in defense of freedom before the ammo box. Please prevent the ammo box needing to be used.

      Keep your mouth shut about your ideas on jury nullification, unless you're already on the jury and you feel the circumstances warrant it, in which case it should be brought up to the other jurors in private while deciding.

  21. Who were these authors? by sycodon · · Score: 2, Interesting

    And should they have been prosecuted? They formented a war ya know.

    Publius, Pacificus, Cattalus, Horatius and Philo Camillus, Silence Dogood, Alice Addertongue, Fanny Mournful, Obadiah Plainman, Busy Body, Populus, An American, A Son of Liberty ,"Vindex the Avenger".

    --
    When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
    1. Re:Who were these authors? by TapeCutter · · Score: 1

      "And should they have been prosecuted? They formented a war ya know."

      Good question. After the bushfires here in Australia there was an opinion columnist in the Sydney Morning Hearald calling for greens to be hung from lamposts and even went so far as to use the Green parties emblem. Even though she clearly broke our sedition laws I don't think the hatefull bitch should be prosecuted but I do think the SMH and the mass-media in general should disown her and her kind(NSFW).

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    2. Re:Who were these authors? by Anonymous Coward · · Score: 0

      She wrote: "if politicians are intent on whipping up a lynch mob to divert attention from their own culpability, it's not arsonists who should be hanging from lamp posts but greenies."

      Which to me is quite a big difference from "calling for greens to be hung from lamposts".

      If the greens didn't do what she claimed then she is a liar. She could probably be sued for libel.

      But I don't think she did what you claim she did either.

  22. They can't have it both ways! by Anonymous Coward · · Score: 0

    If the US government is going to tax based on the value of the material the money is made from my taxes will be MUCH lower this year as paper is more or less worthless.

    1. Re:They can't have it both ways! by Anonymous Coward · · Score: 0

      It's the government. They can have it any way they want. Especially tax agencies always twist things the way they get most. It doesn't have to be reasonable or fair. It just hast to generate more taxes.

  23. It's the nature of the medium by davidwr · · Score: 1

    You can be on the street-corner talking to your buddies and say "Obama should be shot" and probably not suffer any consequences. Even if a cop overhears you there will probably be a cursory "investigation" but the purpose will probably be to put the fear of God, er, the government in you rather than to actually lock you up.

    If you take the time to mail a letter and pay for a stamp, that indicates you are more serious. People who are just blowing off steam don't usually go to the trouble of mailing letters. Some do, but most don't.

    Anonymous web comments are somewhere in between, and should be treated as such.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    1. Re:It's the nature of the medium by cml4524 · · Score: 1

      The easier it is to make a threat, the less seriously the threat should be viewed? That doesn't make any sense. A threat's a threat. If someone made a threat, it should be treated in only one consistent way no matter what medium they used to convey it.

    2. Re:It's the nature of the medium by LuvlyOvipositor · · Score: 1

      The same reason that when you were younger your parents told you to count to ten when you were upset or angry. If you are angry, you look for a quick outlet for that anger, speaking is the most readily available medium. Commenting on the internet is almost as easy, and generally more anonymous. Therefore, threats on the internet are largely ignored (most are spur of the moment and in temporary anger). Like the parent said, if someone takes the time to write a letter (and attempt to disguise their address), then the situation is much more serious. The person clearly has a much more long-lasting anger and is more likely to deliver or attempt to deliver on the threat.

      --
      Where do we go from here?
    3. Re:It's the nature of the medium by cml4524 · · Score: 1

      I'd love to see what you're basing your implied psychology on. You're arguing that people who make direct threats against other people on the internet are less serious than people who make direct threats via a letter. What proof do you have of such a claim?

    4. Re:It's the nature of the medium by Thinboy00 · · Score: 1

      Drunk dialing used to be a problem for alcoholics. Now they use the internet. I've never heard of someone drunk snail-mailing.

      "Blowing off steam" is vaguely similar to being drunk -- you make stupid choices in the short run. It's harder to make a stupid choice w.r.t. snail mail since you need an envelope and stamp, and those things are not readily available (i.e. you have to get in your car and drive to the post office or something). By contrast, the internet, the phone, etc. are readily available -- you can just pick up the phone or mouse/keyboard/laptop/whatever.

      --
      $ make available
    5. Re:It's the nature of the medium by cml4524 · · Score: 1

      A rather specific point was made which I'm questioning: that threatening someone via the regular post is somehow more credible than threatening that same person via the internet. I want to see actual evidence that there's any truth in this statement, because, on its face, it's absurd.

      We're so used to seeing random idiots with internet connection anonymously threaten other anonymous people, but this is not the same thing. This is a case of an anonymous idiot threatening a specific group of people who can be readily identified and found.

  24. Unlawful governance by twostix · · Score: 3, Insightful

    "Reportedly told them that they can only be taxed on the face value of the coinage -- not the much higher market value of the metal"

    The money paid is 100% legal United States Currency, minted by the United States Government itself.

    The US constitution specifically states that gold an silver are legal tender.

    What's the problem? It's not his problem that the US government has destroyed the value of money so that "old" but perfectly legal currency is now worth 1000 times more than it's equivalent "new" money...IF the government doesn't like it they need to change the law and outlaw the gold coins that they mint as legal tender.

    Otherwise he's being prosecuted for something that "feels" illegal, which is a deadly slippery slope to go down.

    1. Re:Unlawful governance by Chlorine+Trifluoride · · Score: 1

      The US constitution specifically states that gold an silver are legal tender.

      [citation needed]

    2. Re:Unlawful governance by brusk · · Score: 4, Insightful

      No, he's clearly paying his employees based on the market value of the coins, not the face value.

      Imagine I paid my employees with one dollar bills signed by Jesus, Buddha, and Abe Lincoln. Clearly these would fetch a high price on the autograph market, significantly above $1 (yeah, I know, you're not supposed to mutilate currency). I think the IRS would be perfectly justified in treating these as having a worth above their face value, since any reasonable person would recognize that they are not just an ordinary dollar bill.

      He's being prosecuted not for paying his employees in gold, which is perfectly fine (if dumb), but for lying about its value, which is against the law.

      --
      .sig withheld by request
    3. Re:Unlawful governance by squiggly12 · · Score: 0

      Hmmm, maybe I didn't look hard enough, but I didn't see anything in the US Constitution about legal tender. http://www.law.cornell.edu/constitution/constitution.overview.html

    4. Re:Unlawful governance by Anonymous Coward · · Score: 0

      Considering value is subjective it's not so clear cut. Nothing in the tax law is clearly illegal and most of it is far beyond "reasonable" people.

      Trying to apply logic and reason to US law will get you laughed out of court.

    5. Re:Unlawful governance by DavidTC · · Score: 2, Informative

      IF the government doesn't like it they need to change the law and outlaw the gold coins that they mint as legal tender.

      Actually, they needed to not change the law. For a while, this would, indeed, be illegal, as private ownership of gold bullion was illegal. They not only changed the law, they started making gold coins again.

      And, indeed. I don't care what the IRS says. If the government prints $10 on a coin, and issues it, WRT the government it's worth ten dollars, period. If the government doesn't like that, it can stop issuing such coins.

      Incidentally, before anyone tries to lump me it with 'the government should not issue paper money' people, I think those people are crazy. However, there's a valid point that if the government is issuing something as money, it has to treat it as money.

      Incidentally, this guy probably committed a bunch of crimes. Not only is he in violation of min wage laws, but I bet his bookkeeping would be interesting, too. It's either lying and showing people were paid in full, or it's showing min wage violations. And it's showing some purchase by the company of expensive gold coins that just vanished.

      --
      If corporations are people, aren't stockholders guilty of slavery?
    6. Re:Unlawful governance by vlm · · Score: 1

      The US constitution specifically states that gold an silver are legal tender.

      [citation needed]

      Article one, section ten, clause one (aka the contracts clause) "No State shall enter into" (long list of naughtyness) "make any Thing but gold and silver Coin a Tender in Payment of Debts;"

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    7. Re:Unlawful governance by L4t3r4lu5 · · Score: 1

      It's actually a federal offence to deface US currency.

      TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
      PART I - CRIMES
      CHAPTER 17 - COINS AND CURRENCY
      333. Mutilation of national bank obligations

      Whoever mutilates, cuts, defaces, disfigures, or perforates, or unites or cements together, or does any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, or Federal Reserve bank, or the Federal Reserve System, with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued, shall be fined under this title or imprisoned not more than six months, or both.

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    8. Re:Unlawful governance by tnk1 · · Score: 1

      As you said, if you alter the currency, then that is illegal and certainly there is a case for taxing its value based on the alteration.

      However, if you are passing unaltered currency, it's currency. Legal tender at the face value. It has to be, or what happens when the price of nickel or copper goes up? Do I suddenly have to pay taxes on the increased metal value on my nickels, dimes, quarters and pennies? I know that they had to change the composition of pennies due to copper prices at least once. Would I be breaking the law simply by holding my coins long enough for their metal value to go up?

      If this is a big loophole, the government has the means to close it easily. They can simply legislate that tender cannot be altered or sold, except at face value. That would mean that you could make platinum pennies inlaid with diamonds, emeralds and rubies and it could still only be sold for one cent, unless returned to the government. Of course, the black market would go to work, but then the IRS would truly have a case for tax evasion.

    9. Re:Unlawful governance by geekoid · · Score: 1

      It's one step more, imagine paying with that 1 bill and then immediatly buying it back frm the employee at it's collector value.
      This means you wee operating at its' collector value, not it's minted value.
      That is what is going to nail this guy.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    10. Re:Unlawful governance by qazsedcft · · Score: 1

      Please read the entire constitution carefully before making yourself look stupid. Section 10 is about state powers not federal powers. It says that individual states are not allowed to make anything else than gold and silver legal tender. Also in section 8 it says that the senate (i.e. the federal government) has the power to coin money and regulate the value thereof. Here "money" is not defined specifically as gold or silver and this is interpreted as allowing the federal government to use anything as money and arbitrarily set its value.

    11. Re:Unlawful governance by OzPhIsH · · Score: 1

      I was just reading that. By that logic, it should be ILLEGAL to use US Dollars (backed by NOTHING) when paying debts to a state. Our paper money is such fraud...

      --

      "To lead the people, you must walk behind them"

    12. Re:Unlawful governance by Dr.+Donuts · · Score: 1

      "The US constitution specifically states that gold an silver are legal tender."

      No, that's not what it says, although that is a commonly held misconception.

      Article I, section 10: No state shall...coin money, emit bills of credit, make any thing but gold and silver a tender in payment of debts...

      This is a restriction on the States powers, not the Federal government. State governments can't issue their own currency, and if States did choose to enforce a tender for payment of debts, the only tender they can enforce is gold and silver.

      For example, a State could require you to pay your taxes in gold and silver. It can't issue it's own notes and force you to pay your taxes with them. Nor could it force you to pay debts with anything else. For example, they couldn't force you to pay your taxes with, say, $1 coins.

      Basically, States have to accept any legal tender if they don't explicitly require payment in gold and silver. There are no Constitutional restrictions on what the Federal government can define and issue as legal tender.

      In short, whatever the Federal government defines and issues as legal tender, must be accepted for payment of debt, with the exception that States have the option of requiring payment in gold and silver.

    13. Re:Unlawful governance by kcurtis · · Score: 1

      No, it is illegal for states to *make* paper money, not *take* paper money.

    14. Re:Unlawful governance by freedom_india · · Score: 1

      You don't need to worry. He already made a fool himself and showed his abysmal ignorance of the constitution.

      --
      "Doing what i can, with what i have." ~ Burt Gummer
    15. Re:Unlawful governance by twostix · · Score: 1

      Completely and utterly irrelevant, these are not "collectors" coins, they are boring straight from the mint, cold hard cash. I think there's a mistake being made here that gold coins are somehow exotic.

      They are not.

      The money is legal tender, it's minted by the government by the hundreds of thousands every year. If the government doesn't like the situation then they can alter the constitution or increase the face value of the coins to more closely match their true value. Otherwise it goes the other way as well and paper money thats market value is about 0.1 cent - for the paper - can be "valued" at that rate too come tax time.

      The government *cannot* have two "values" for its legal tender, as far as the government is concerned it's either what the government says it's worth (the face value) or it's not. Otherwise the stack of $100 dollar paper notes (actually some sort of polymer here) I just got paid are only "worth" 1 cent each and that is what I'll claim them as.

      I'm pretty sure no government is going to open the "market value" can of worms on its currency. If it's good for the government to claim a currencies value is "market value" rather than face value at tax time then it's good for me.

      All that aside, they're prosecuting a guy for the financial decisions of his contractors as paying someone in gold even if it's just bullion is perfectly legal. How they then claim that on their taxes is their own responsibility not his.

      It's a public example nothing more.

    16. Re:Unlawful governance by clone53421 · · Score: 1

      The U.S. Constitution doesn't, but the U.S. Mint does[.pdf] – page one, 3rd column, under "Easy to buy and sell". (JPEG, if you prefer)

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    17. Re:Unlawful governance by clone53421 · · Score: 1

      Notice the part about "with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued". Autographing a bill doesn't prevent it from being used. Bills get marked on all the time when they're being counted and sorted by banks and such.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    18. Re:Unlawful governance by clone53421 · · Score: 1

      Imagine I paid my employees with one dollar bills signed by Jesus, Buddha, and Abe Lincoln.

      Then they're receiving two forms of compensation: legal tender with $1 printed on it, and a signature worth some unspecified large amount.

      This guy was just paying them in legal tender with $50 stamped on. It's the government's own stupid fault that they're putting face values on legal tender that's intrinsically worth far more than the amount they stamp onto it.

      Hypothetical scenario: we know that copper pennies (the older ones, before they contained mostly zinc) are worth more, by the copper they contain, than their 1 cent face value. Since it's illegal to melt them down, nobody values them for their metal content; but let's disregard that...

      Suppose in our hypothetical scenario that I know of a plot to overthrow the U.S. government, and thus melting down pennies will be no longer illegal. (Or, suppose my employees are going to break federal law by melting them down anyway.)

      So, if I pay my employees in copper pennies, knowing full well that their value (to my employees) is greater than their face value, what is the taxable value?

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    19. Re:Unlawful governance by DragonWriter · · Score: 1

      The US constitution specifically states that gold an silver are legal tender.

      Nowhere in the Constitution does it state that gold and silver are legal tender. Gold and silver are the only things excluded from the set of things states are prohibited from deciding, on their own, to make legal tender, but that's not the same thing.

    20. Re:Unlawful governance by clone53421 · · Score: 1

      For a while, this would, indeed, be illegal, as private ownership of gold bullion was illegal.

      They're legal tender, and it's illegal to melt them down. I'm not sure if they could be considered gold bullion for this reason.

      Incidentally, this guy probably committed a bunch of crimes.

      Let's hit them one by one...

      Not only is he in violation of min wage laws

      They were hired as contractors. The amount you pay your contractors is based on the contracted price, and I'm pretty sure minimum wage laws don't apply.

      He also didn't withhold income taxes, which you didn't mention. Again, this was legal because they were contractors. Contractors must report their own earnings to the IRS. The contract payer does not withhold income taxes from the payment.

      And it's showing some purchase by the company of expensive gold coins that just vanished.

      I'd expect that he'd write them off as a business expense. He was probably able to take a deduction – they'd show up on the books as a loss!

      Of course, IAN a lawyer, tax professional, or anything else that would imply that I know what I'm talking about...

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    21. Re:Unlawful governance by GNT · · Score: 1

      Another dufus who can't read clear English. It is implied, in forcing the States to only use gold and silver, that gold and silver are legal tender.

    22. Re:Unlawful governance by Tired+and+Emotional · · Score: 1

      It also falls under the classification of "artifical task avoidance device". Schemes which might be legal if they served an actual commercial purpose are not if their sole purpose is to avoid paying taxes.

      --
      Squirrel!
    23. Re:Unlawful governance by jonatha · · Score: 1

      The value of the copper in the pennies.

      --
      The SCO lawsuit makes me wish my company were in Utah. We need a new building.
    24. Re:Unlawful governance by clone53421 · · Score: 1

      Bzzt, wrong.

      I paid them with U.S. currency. U.S. currency is valued at face value. If they find someone who values it higher, for instance if I unknowingly pay someone with a silver dime or quarter, they can sell it and make a profit, but the profit is on them. They have to report that as additional income. It's not on me.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    25. Re:Unlawful governance by jonatha · · Score: 1

      US currency is valued at fair market value, just like everything else.

      --
      The SCO lawsuit makes me wish my company were in Utah. We need a new building.
    26. Re:Unlawful governance by clone53421 · · Score: 1

      I think I'll go to the bank now. I have a bunch of rolls of pennies at home, and according to you, I can get more than face value for them.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    27. Re:Unlawful governance by jonatha · · Score: 1

      Not from the bank. And unless they're fairly old pennies, not from the copper broker either.

      --
      The SCO lawsuit makes me wish my company were in Utah. We need a new building.
    28. Re:Unlawful governance by jonatha · · Score: 1

      While we're at it, care to cite a legal reference to back your assertion that the government has to value a $20 gold piece at $20?

      --
      The SCO lawsuit makes me wish my company were in Utah. We need a new building.
    29. Re:Unlawful governance by clone53421 · · Score: 1

      You missed my point. NOBODY will value the pennies at greater than face value, because melting them down for copper would violate federal law.

      So, if I pay my employees in rolled pre-1965 pennies, there's nothing the IRS can do but tax them at face value. If the government gets overthrown tomorrow and in the ensuing anarchy my employees are forced to melt the pennies down for copper, we've effectively screwed the IRS over and there's fuckall they can do about it.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    30. Re:Unlawful governance by clone53421 · · Score: 1

      I don't think there is any legal reference anywhere that says the government has to value any legal tender at anything. Unless possibly you know of one.

      It's produced by the U.S. mint. It's presumably valued at whatever they say it's valued at. Why do they stamp on a face value that's incorrect? To be consistent, they should at least stamp "5 cents" on the quarters, "10 cents" on pennies, "1 dollar" on the nickels... oh wait, that would be COMPLETELY FUCKING INSANE.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    31. Re:Unlawful governance by jonatha · · Score: 1

      The assumption you don't think exists is central to your argument...

      --
      The SCO lawsuit makes me wish my company were in Utah. We need a new building.
    32. Re:Unlawful governance by DavidTC · · Score: 1

      They're legal tender, and it's illegal to melt them down. I'm not sure if they could be considered gold bullion for this reason.

      You actually had to turn gold coins in and get cash for them.

      You could actually continue to own gold bullion, you just couldn't buy it. You had to sell it to the government if you sold it. And, really, the same with gold coins...you could own them (Although technically illegally), you just couldn't use them. If you wanted to use them, you'd have to trade them in. (Presumably stating you'd 'just found them' or something if it was past the time you were supposed to trade them in.)

      All this was to hide the fact that the actual cost of gold and cash had been disconnected, even while the government continued to state, I think, $35 an ounce as the value of money. (Which is what they'd give you for gold.)

      Of course, a lot of people just continued to hold on to all their gold during this time, which paid off when all this ended and gold was worth ten times more.

      They were hired as contractors. The amount you pay your contractors is based on the contracted price, and I'm pretty sure minimum wage laws don't apply.

      I'm not certain why you think minimum wage laws wouldn't apply to contractors, but they do.

      I'd expect that he'd write them off as a business expense.

      If he wrote them off as a business expense, than he had to actually write the value he paid for them as a loss. A loss when he sent them to employees.

      In other words, for his idea to work, they need to transferred out at the company at face value. As 'cash'. Not as 'benefits' or whatever else you might pay people, they need to exit, on the books, as 'ten dollars of salary, paid in cash', so the person receiving them can record them that way. They have to leave the company as though they were normal cash, paid to employees, that just happened to be worth quite a lot of money to collectors.

      If they don't exit that way, it's pretty obvious it was some tax evasion scheme. The company can't assert it paid the worker in a thousand dollars worth of goods, and have the worker report that income as ten dollars.

      However, if they do it as ten dollar each way, then you've got a different problem of valuable coins that they actually purchased at full value disappearing within the company.

      --
      If corporations are people, aren't stockholders guilty of slavery?
    33. Re:Unlawful governance by clone53421 · · Score: 1

      If he wrote them off as a business expense, than he had to actually write the value he paid for them as a loss. A loss when he sent them to employees.

      ...that was sort of my point.

      However, if they do it as ten dollar each way, then you've got a different problem of valuable coins that they actually purchased at full value disappearing within the company.

      Not if he wrote them off as a loss... or am I missing something?

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    34. Re:Unlawful governance by clone53421 · · Score: 1

      I can go to any Wal-Mart and buy paper with fake dollar amounts printed in it in the toys section. It's worthless. The face value is only pretend, having nothing to do with its actual value.

      So, since when is the U.S. Mint in the business of making play money for rich people? Am I supposed to be impressed, because your $50 gold piece is worth hundreds of dollars? Do you let your kids play grocery store with them or something to prove how rich you are?

      If you're going to value the coins BY THEIR WEIGHTS, their face values should BE THEIR WEIGHTS, not some fake dollar amount that's completely meaningless.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    35. Re:Unlawful governance by clone53421 · · Score: 1

      ("You" in the general sense, of course. I have no idea how rich you are and please don't think I'm mocking you personally... just the people who are so stupid as to mark $50 on a piece of metal that's worth twenty times that. They deserve to have someone play them in this way.)

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    36. Re:Unlawful governance by jonatha · · Score: 1
      Was this directed to me?

      For the purposes of the tax code, the value of anything received in payment is its market value.

      It so happens that the market value of $20 bills (most of them, anyway) is $20. And it so happens that the market value of $25 American Eagle gold bullion coins (I note in passing that "bullion" is part of their official name) is whatever the market is currently paying for 1/2 troy ounce of 22kt gold (probably in the neighborhood of $500 these days, I shouldn't wonder).

      The Gold Bullion Coin Act of 1985, which authorized the production of American Eagles, might perhaps have something to say regarding this issue. I'll see if I can find a copy...

      --
      The SCO lawsuit makes me wish my company were in Utah. We need a new building.
    37. Re:Unlawful governance by clone53421 · · Score: 1

      Yes, it's in response to your post, but no it's not directed at you personally (as I said in my other post).

      Look, I realise full well that it's absurd to expect them to actually let this sort of thing go on. However, marking dollar denominations that do not correspond to the value of the coins is just plain stupid and I applaud this guy for having the nerve to point it out.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    38. Re:Unlawful governance by jonatha · · Score: 1

      By your argument, then, we must find something that is now worth $1, and will always be worth $1, to make our dollar bills out of. Got any candidates?

      --
      The SCO lawsuit makes me wish my company were in Utah. We need a new building.
    39. Re:Unlawful governance by clone53421 · · Score: 1

      Yes, I do have a candidate. Something that is now worth $1 and will always be worth $1...

      THE DOLLAR BILL.

      It's worth $1.

      It'll always be worth $1, barring some calamity of epic proportions.

      That's what's printed on it, and it's backed by the U.S. government, so in good faith I assume it'll always be worth $1.

      A $50 gold American Eagle, despite having "$50" stamped onto it, is NOT worth fifty dollars. It has some unknown value that I'd have to look up the current price of gold to find out, and stamping "$50" on it is stupid. It's a meaningless relic from the era when the dollar actually WAS linked to a certain weight in gold, and that era is over.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    40. Re:Unlawful governance by jonatha · · Score: 1

      Similarly, we can envision a calamity that wipes out trees (and paper), thereby making the dollar bill worth more than $1 (presumably in coin). We can also envision the price of gold collapsing, so that the value of the gold in a $50 Eagle is less than 50 $1 bills. In short, your proposed candidate fails the test, for the same reasons you find the $50 gold piece absurd.

      --
      The SCO lawsuit makes me wish my company were in Utah. We need a new building.
    41. Re:Unlawful governance by clone53421 · · Score: 1

      I don't really see how you drew that conclusion, but let's move on...

      First of all, if a dollar bill costs more to make than it is worth, stop making it. Find something cheaper and put "$1" on that.

      If, in some extreme case, the dollar bill is actually worth more than $1, not in terms of cost to make, but actually intrinsic value (if the dollar goes to shit and it's worth more than $1 just to burn it for heat or wipe your ass with it), it should no longer be considered U.S. currency, because that implies that its face value is actually meaningful (i.e. backed by the U.S. government). That's what the face value is, essentially: the assurance that the U.S. government backs it at a certain value.

      Similarly, since a $50 gold piece is worth more than the $50 that's imprinted on it, it shouldn't be considered U.S. currency, and we should stop producing them. Note that I'm not saying we should stop producing the coins themselves: just stop putting $50 on them! Mark them with their weight, not their value, because their value is not fixed to any dollar amount (and hasn't been since we went off the gold standard).

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    42. Re:Unlawful governance by brusk · · Score: 1

      Actually your plan is bass-ackwards. If the gubmint were to ban all resale of currency above its face value, the IRS would have NO grounds for asserting tax evasion in a case like this, since the coins in question could not be exchanged for a greater value in other specie. But precisely because there IS no rule against it (and indeed the mint sells gold coins well above their face value), the IRS does have a case.

      And the issue of defacement/modification is actually a red herring. Say I had a bill that had great historic value -- it was used to buy Steve Jobs' first soldering iron or something, and I could prove it by the serial number -- it could be worth far more than its face value without any alteration. If I buy that bill on eBay for $10,000 and pay my employee with it, I think I've paid my employee far more than the $5 face value, and the IRS is right to treat it on the basis of its market value.

      --
      .sig withheld by request
    43. Re:Unlawful governance by mattwarden · · Score: 1

      It's value is set by the US government. The US government set the value at $50, and you're saying he's lying by reporting that the value was $50? What are you smoking?

      These are not collectors items any more than dollar bills are collectors items. This is minted legal tender created by the US government and with a face value set by the federal government. The same situation happens with pennies and nickels, where the materials are worth more than the face value set by the US government.

  25. The tax dodge itself seems spurious by 91degrees · · Score: 5, Interesting

    So, they can avoid income tax on 99% of their income by being paid in $1000 worth of coins with a total face value of $10. That makes sense.

    Surely then, should they choose to sell these they'll pay income tax on any profit they make. If they use them as legal tender, they'll only be able to use the face value. I suppose they might be able to haggle the price of a large purchase down a little but for everyday spending it seems the savings are small.

    1. Re:The tax dodge itself seems spurious by Faerunner · · Score: 2, Interesting

      I'm not even sure most places will accept gold coins as legal tender; not that they're not legal, but the cashiers and managers have rarely seen one and will become suspicious if someone tries to pay for their loaf of bread with a couple of Sacajawea dollars, let alone higher denomination coins. (I know; I've tried.) I imagine having an entire company's worth of employees come into your store and attempt to buy snacks with $20 gold coins would be enough to warrant a call to the authorities by a nervous manager.

      That being the case it would stand to reason that the person would attempt to sell the coins or trade them for paper dollars at the bank. It does not stand to reason that having been told they don't need to pay income tax on the coins, they would file their taxes that year and tell the IRS about any extra money they made off the transfer, at least assuming they're smart enough to figure out why the IRS doesn't need to know.

    2. Re:The tax dodge itself seems spurious by Anonymous Coward · · Score: 0

      You are correct. If paying them $10 in face value was legal (and it's a tax dodge, so it's not), then as soon as they traded the gold in, there would be a $990 *Short Term Capital Gain* which is all taxable, and has to be reported.

    3. Re:The tax dodge itself seems spurious by Ogive17 · · Score: 1

      That's the same way I look at it. Either you use the gold coins at face value and don't pay tax on them, or you sell the gold coins at a profit and must claim that 'investment' income on your year end taxes.

      Maybe you keep bartering that gold coin for goods/services worth the approximate value of the gold in the coin, but it seems that eventually someone would cash it out and have to pay taxes on that...

      --
      "Action without philosophy is a lethal weapon; philosophy without action is worthless."
    4. Re:The tax dodge itself seems spurious by vlm · · Score: 1

      Surely then, should they choose to sell these they'll pay income tax on any profit they make.

      Not necessarily. For example, there is no law that I can't buy a laptop "worth" $1000 from someone for $10 (assuming they're not fencing stolen goods, etc, etc)

      That kind of stupidity happens all the time at yard sales, where "ugly old painting" is bought for $10 by someone whom recognizes it as an original Van Gogh or whatever. Somebody buys a worthless old postcard from paris for 50 cents because they have special knowledge that the cancelled rare stamp is worth 50 bucks but the seller has no idea. That is no tax dodge.

      The tax dodge is when somebody far enough down the line eventually trades the "$10 coin" for $1000 of federal reserve notes and doesn't pay the capital gains tax.

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    5. Re:The tax dodge itself seems spurious by clone53421 · · Score: 1

      there is no law that I can't buy a laptop "worth" $1000 from someone for $10

      Correct, but if you resell it for $1000, you have to report it as profit.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    6. Re:The tax dodge itself seems spurious by clone53421 · · Score: 1

      Surely then, should they choose to sell these they'll pay income tax on any profit they make.

      They should. I suspect they didn't, or we wouldn't be having this conversation.

      Cue a "Wait, you mean my contractors haven't been reporting all of their profits to you guys? But how is that my fault?"

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    7. Re:The tax dodge itself seems spurious by clone53421 · · Score: 1

      Private business don't have to accept anything they don't want to. U.S. currency is legal tender for "debts, public charges, taxes, and dues".

      If they're selling on credit, it would be debt, and they'd have to accept any form of U.S. currency to remit the debt. In a transaction, however, there is no debt. The exchange is instantaneous and never creates a debt.

      Obviously they aren't collecting public charges (e.g. license plate fee, alarm permit fee, traffic ticket, etc), taxes, or dues.

      For that reason, they pretty much get to call the shots. They could demand that you pay them in bottle tops if they wanted.

      Notice that, since it's not a debt, you can simply choose to not engage in business with them if their terms are unreasonable. In contrast, if you owe a debt, you'll be forced to pay it eventually, which is why they are required to accept U.S. currency for payment of debts. Otherwise, they could make their terms intentionally unreasonable to prevent you from paying (which sounds stupid, until you realise that "you can pay us no more than the interest plus 5/18% of the principal per month" – think "30-year mortgage" – would be a handy racket, as paying it off early will save you money... this way, you're able to say "here's U.S. currency with face value equal to my debt; now you're legally obligated to accept it and cancel my debt").

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    8. Re:The tax dodge itself seems spurious by Faerunner · · Score: 1

      So theoretically I could start a business and insist that all payment be through trade/barter. If I did so I'd still have to pay income tax on my traded furs and bottle caps, though... what a tax form nightmare!

    9. Re:The tax dodge itself seems spurious by gknoy · · Score: 1

      If he told them that they only needed to pay taxes on the face value, the IRS will probably try to pin him with a conspiracy to commit tax shenannigans. (Fraud? Evasion? I don't know.) Ideally, he would have paid them at face value (minimum wage, I sure hope), and then advised them to sell them on the market, and then pay taxes on THAT.

      I'd probably rather get a normal salary: I suspect that the capital gains tax is >> the income tax rate.

    10. Re:The tax dodge itself seems spurious by clone53421 · · Score: 1

      Hmm, I'm not sure about this. I'm inclined to say you wouldn't have to pay income taxes at all, since your monetary income would be zero. (Assuming you'd actually managed to switch to a completely cashless existence, for the sake of the argument. You'd still have to report an income if you sold some of your bartered goods because the grocer demanded cash.)

      You'd probably have a hard time getting business, though.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    11. Re:The tax dodge itself seems spurious by clone53421 · · Score: 1

      I haven't got a conclusive answer from anyone, but I'm pretty sure minimum wage laws wouldn't apply to payments made from contractee to contractor.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    12. Re:The tax dodge itself seems spurious by KiahZero · · Score: 1

      Your inclinations would be incorrect.

      See, for instance, "Bartering income" - http://www.irs.gov/taxtopics/tc420.html.

      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.

      --
      I'm a lawyer, but not yours. I wouldn't represent someone who thinks taking legal advice from Slashdot is a good idea.
    13. Re:The tax dodge itself seems spurious by clone53421 · · Score: 1

      Eh, I should'a known they'd get their grubby mitts on my stuff somehow.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    14. Re:The tax dodge itself seems spurious by KiahZero · · Score: 1

      Shocking that an income tax would reach income.

      --
      I'm a lawyer, but not yours. I wouldn't represent someone who thinks taking legal advice from Slashdot is a good idea.
    15. Re:The tax dodge itself seems spurious by clone53421 · · Score: 1

      I wouldn't call it income, though, because in most barter systems, the value is fairly equivalent (by design). If the values exchanged are the same, no income was generated.

      If I give you four $5s for your $20 because I have too many $5s and you have not enough, we've both benefited from the exchange but there's obviously no income on either end of the deal.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    16. Re:The tax dodge itself seems spurious by KiahZero · · Score: 1

      There are categorical exemptions for things such as "like-kind exchanges", where property held for business or investment purposes is exchanged for similar but distinct property (such as homes held as investment being traded between property management corporations).

      However, the sort of barter clubs being described both by the above poster and the IRS are not the equivalent of "trading four $5s for a $20". The poster specifically said "all payment [would] be through barter." Simply accepting goods in lieu of money used to purchase those goods is not enough to escape the income generated from those transactions.

      --
      I'm a lawyer, but not yours. I wouldn't represent someone who thinks taking legal advice from Slashdot is a good idea.
    17. Re:The tax dodge itself seems spurious by mattwarden · · Score: 1

      First, if they were to trade the $50 coin for $1000 in paper bills, then the gain would be subject to commodity capital gains tax, not income tax.

      Second, there is no requirement to trade the coin for paper bills. It could be traded for goods directly. Technically if a $1000 product were traded for a $50 coin, that is likely a taxable event, but it's the same taxable event you would have if you traded your crappy bicycle worth $15 for a crappy fridge worth $100 on craigslist.

  26. Basic human right??????? by Shivetya · · Score: 1, Troll

    W T F ????

    So the ability to make threats or derogatory comments without having to take responsibility is a basic human right?

    When does responsibility for ones actions apply? Or is it a basic human right not be responsible for what one does or says? Or is that only when the subject agreed upon is mutually acceptable for ostracism?

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
    1. Re:Basic human right??????? by Anonymous Coward · · Score: 0

      Don't you have the KKK in the US? What is different?

    2. Re:Basic human right??????? by stonewallred · · Score: 1

      How about demonstrable harm? Where is the harm in the anonymous threats? Who is injured? How are they injured? How could the court system make the threatened whole again? If there is no harm, and no way for the threatened to be made whole (since they suffered no demonstrable harm) then it should not be a crime. I am all for people taking personal responsibility for their action, up to including my non-support for public schools, fire departments and other wasteful spending. Government should be composed of police, courts and military and diplomatic corps. Everything else should be privately supported by those who desire the service or goods. Yes I am a Libertarian, with the exception that I believe the border should be sealed tighter than Fort Knox in regards to illegal crossings.

    3. Re:Basic human right??????? by plague3106 · · Score: 1

      Careful here. Plenty of people say things like "oh i'll kick your ass," even to people they don't know, but don't mean it, as evidienced by the fact that they don't kick the other persons ass.

    4. Re:Basic human right??????? by spyrochaete · · Score: 1

      I'm talking about internet anonymity - being able to publish anonymously without fear. There's a world of difference between words and actions.

  27. How anonymous is slashdot? by mdmkolbe · · Score: 3, Interesting

    If the logs aren't there, the subpoena doesn't hurt anything. So I ask what sort of logs does slashdot keep that could conceivably be used to track down an AC? Be imaginative in your answers (e.g. someone could try matching the HTTP access logs against the time the comment was posted(*)). Think like a smart technical cop who really wants to figure this out.

    (*) There are probably too many accesses in a single minute to determine that reliably, but it may give you a candidate list that you could then correlate with other data. Like I said, be imaginative.

    1. Re:How anonymous is slashdot? by scottv67 · · Score: 1

      >If the logs aren't there, the subpoena doesn't hurt anything. So I ask what sort of logs does slashdot keep that could conceivably be used to track down an AC? Be imaginative in your answers (e.g. someone could try matching the HTTP access logs against the time the comment was posted(*)). Think like a smart technical cop who really wants to figure this out.

      Why even make it that complex? Who's to say that there isn't a field in database row 28360595 that contains the IP address of the system used to post that message? Every post by an AC could have the source IP recorded in case LEOs come knock-knock-knockin on the /. door. (Cue the "But I am using TOR/a web proxy/botnet to hide my identity" or "I am behind a firewall that uses NAT so you'll never catch me!11!1111!!!" replies)

    2. Re:How anonymous is slashdot? by Anonymous Coward · · Score: 0

      I know you're kidding, but this is interesting, so...

      1) In this country, TOR is overkill. I'll explain why momentarily.

      2) Web proxies won't help you unless they're in a country that doesn't cooperate with law enforcement, and if they are, the NSA is probably already suspicious of you. A web proxy in this country will cooperate with subpoenas; they have no choice.

      3) Botnets open you up to way more legal risk than a simple anonymous posting. You'd probably get caught for the botnet before you got caught for the posting. It's highly unlikely that this would be a solution anyone would take seriously.

      4) A firewall with NAT has no effect on the issue, since you have an IP address assigned to your cable or DSL modem, and THAT is the one your ISP will correlate to your user account when "they" come for you. It's amazing how little the average American knows about how networks operate.

      WHY TOR IS OVERKILL, AND WHY YOU DON'T NEED IT:

      You can get a cheap laptop with WiFi off of Craigslist for under a hundred bucks. So buy one.

      Next, wipe the hard disk by firing up Knoppix and running badblocks a few times (you're a Linux guy, right? You're on Slashdot after all...).

      Next, install Ubuntu (because it seems to have the best WiFi support). Create a user account called "JohnDoe". Install all the security gewgaws and gimcracks you can find, like Nmap and the Nmap frontend, gufw for firewall config, etc. Lock it down as far as possible. Now back up the entire hard drive by tarring and gzipping / to an external USB disk, and doing "dd if=/dev/hda of=bootSectorBackup.dat blocks=512 count=1" to grab the boot sector.

      Nickname the laptop "SacrificialLamb".

      Take it to a WiFi hotspot at least an hour away from your own neighborhood. Or cruise around neighborhoods far away from your neighborhood until you find an unsecured WiFi router. Or bring it to the parking lot of a local college and do the same thing. Do your stuff.

      When you get home, wipe the hard disk with badblocks, and re-install your backups.

      Repeat as desired, always going to a different neighborhood to post your AC comments.

      What good is an IP address if it can't be connected to you?

    3. Re:How anonymous is slashdot? by Will.Woodhull · · Score: 1

      If the logs aren't there, the subpoena doesn't hurt anything.

      Not true; even though this kind of subpoena may be technically impossible to comply with, it still stifles free speech, so it definitely hurts.

      The DoJ needs to take a long, hard look at the way these Federal Prosecutors are abusing the Grand Jury system and the other tools they have been entrusted with. Some housecleaning is long over due. It is a statistical certainty that there are now a countable number of Federal Prosecutors who should be fired (and maybe prosecuted for crimes in office).

      --
      Will
    4. Re:How anonymous is slashdot? by clone53421 · · Score: 1

      1) In this country, TOR is overkill. I'll explain why momentarily.

      WHY TOR IS OVERKILL, AND WHY YOU DON'T NEED IT:

      You can get a cheap laptop with WiFi off of Craigslist for under a hundred bucks. So buy one.

      Next, wipe the hard disk by firing up Knoppix and running badblocks a few times (you're a Linux guy, right? You're on Slashdot after all...).

      Next, install Ubuntu (because it seems to have the best WiFi support). Create a user account called "JohnDoe". Install all the security gewgaws and gimcracks you can find, like Nmap and the Nmap frontend, gufw for firewall config, etc. Lock it down as far as possible. Now back up the entire hard drive by tarring and gzipping / to an external USB disk, and doing "dd if=/dev/hda of=bootSectorBackup.dat blocks=512 count=1" to grab the boot sector.

      Nickname the laptop "SacrificialLamb".

      Take it to a WiFi hotspot at least an hour away from your own neighborhood. Or cruise around neighborhoods far away from your neighborhood until you find an unsecured WiFi router. Or bring it to the parking lot of a local college and do the same thing. Do your stuff.

      When you get home, wipe the hard disk with badblocks, and re-install your backups.

      Repeat as desired, always going to a different neighborhood to post your AC comments.

      What good is an IP address if it can't be connected to you?

      Good fucking lord, man... I'm not supposed to install a simple programme because I could achieve the same effect by buying a laptop, wiping the disc multiple times, performing backups, driving around, and finding unsecured wi-fi nodes?

      "Overkill"

      You keep using that word. I do not think it means what you think it means.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    5. Re:How anonymous is slashdot? by mdmkolbe · · Score: 1

      Who's to say that there isn't a field in database row 28360595 that contains the IP address of the system used to post that message?

      That's sort of what I'm asking. Is there such a field? Even if there isn't a field by itself, are there multiple fields that together could be used together to infer a single IP or come up with a short candidate list? (Or for logged-in users that check the "AC" box, is there a way to track back to the user name?)

    6. Re:How anonymous is slashdot? by Anonymous Coward · · Score: 0

      Well... What I meant by that was, here they are building this big onion router, and all these people are participating in it, and it's this huge effort, right? BUT... It doesn't actually protect you at ALL, since the government sponsored it. If they want to know who a TOR user is, they WILL. So, you know, it DOESN'T give you the "same effect". Not at ALL.

      All you have to do is keep a "clean" laptop around, and use it somewhere other than your HOME. NOBODY can trace THAT, no matter HOW many subpoenas they get. And by KEEPING it clean, nobody can prove anything with it even if they get their hands on it.

      I left out manually configuring the MAC address; you can do that too you know.

      TOR is full of sound and fury, signifying nothing.

      I liked your response though. "Good fucking lord, man..." Classic.

    7. Re:How anonymous is slashdot? by stine2469 · · Score: 1

      Don't do this.  If you drive 30 minutes north today and post, and tomorrow you drive 30 minutes south, the following two days your drive east and the west, you have just given the SCUM a cross-hair with you at the center.....

      think before you act people

    8. Re:How anonymous is slashdot? by Anonymous Coward · · Score: 0

      That's a good point. But if they're going to do that, you could just arrange your trips to point the crosshairs at a bully who picked on you in the sixth grade.

      Take THAT, Scott! Enjoy gitmo...

  28. You forgot a few things to be anonymous by davidwr · · Score: 5, Informative

    * Don't touch the envelope or paper without wearing several layers of surgical gloves.
    * Don't use a printer that leaves any identifying marks. Most modern color printers are traceable and most older typewriters are as well.
    * Don't lick the stamp or envelope!
    * Don't drop it in any drop-box that has a security camera anywhere nearby.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    1. Re:You forgot a few things to be anonymous by DriedClexler · · Score: 4, Funny

      * Don't touch the envelope or paper without wearing several layers of surgical gloves.
      * Don't use a printer that leaves any identifying marks. Most modern color printers are traceable and most older typewriters are as well.
      * Don't lick the stamp or envelope!
      * Don't drop it in any drop-box that has a security camera anywhere nearby

      They'll still find you from the return address...

      --
      Information theory is life. The rest is just the KL divergence.
    2. Re:You forgot a few things to be anonymous by Anonymous Coward · · Score: 0

      You left out that if you have a friend remailing from another city for you, be sure to put your envelope in a plastic ziplock inside a larger envelope. That way your friend never makes any contact, even accidentally, with the package. Leave a note inside telling them to open the ziplock only after they're at the box and to let the package slide out of the bag and directly into the box. Then throw the bag and outer envelope away at some place like McD's since nobody will go through that much food garbage to get an envelope.

      Yes, you could just drive out of state but I'm talking about cross-country mailings where you don't want a paper trail showing your travels to do so.

      P.S. My captcha is "hazards".

    3. Re:You forgot a few things to be anonymous by Anonymous Coward · · Score: 0

      If you use the destination address as the return address with a non-existent address as the destination address, you don't have to bother with the stamp, it'll be delivered where you want for insufficient postage.

  29. The american tax system by Anonymous Coward · · Score: 0

    For a European this all seems pretty strange. Are you, as a citizen in the USA, responsible for paying the income tax yourself?

    If you earn $2000/mo, do you actually receive $2000/mo in your hand or via some payslip/cheque system?

    Does this mean you can choose to keep it all if you feel like breaking the law?

    1. Re:The american tax system by ponraul · · Score: 1

      Generally, no.

      If you're working a regular job, your employer withholds money from your gross earnings to make scheduled income tax payments on your behalf. Usually, if you don't have any investment income and depending on how much you have withheld, you might get a tax refund instead of owing the IRS. Most people fall into this category.

      If you elsewmake your money from investments or other kinds of alternate employment, that's when you start owing tax. Most people who fall in to this category are rich.

    2. Re:The american tax system by Zebai · · Score: 1

      There are laws designed to encourage you and your employer to have witholdings from your paycheck but for the most part yes you can avoid such things and face the news in April.

    3. Re:The american tax system by clone53421 · · Score: 1

      It depends.

      If you're paid cash (babysitting, lawnmowing, etc...), you're required to report those earnings on your income tax filing come April.

      However, if you have proper employment, they'll withhold income taxes from your salary and they'll report your salary and the amount they withheld to the IRS. They'll also send you a W-2 form at the end of the fiscal year that contains this information. You fill out your tax return, using the information from the W-2, and you figure out how much you actually owed. If it was more than they withheld, you have to send them the difference. If it was less and they withheld too much, they'll return it (thus, the income tax return), and you can claim "exemptions" to your employer if you believe too much is being withheld. Claiming exemptions will reduce the amount they withhold, so you'll get a larger check and a smaller income tax return... but of course if you claim too many you'll end up sending the IRS a check in April.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    4. Re:The american tax system by david_thornley · · Score: 1

      That depends on whether you're a regular employee or a contractor. I've worked as both.

      Right now, I'm a regular employee, which means that a certain amount of money is withheld from my paycheck and sent to the IRS. The US tax system is quite complicated, and so this is an estimate of my tax liability, to be corrected with the final filing.

      When I was a contractor, I was paid my hourly rate in my check (or however it was I was collecting - I used PayPal for a client or two), and it was up to me to pay taxes on it. There are four times of the year, not all of them three months apart, when I was supposed to file estimated taxes, somewhat like the withholding. Figuring taxes was more complicated, also, and I owed more to the Feds for social security/medicare/whatever.

      Come income tax filing time, I figure what I owe and compare it to what my employer or I already sent in, and must pay if there's a shortage (I get any excess back). If I owe too much compared to how much was sent in already, I may be liable for penalties, which I have to pay.

      If the money hasn't already been sent in, yes, I can break the law and keep it all. I knew a guy once who worked as a contractor and didn't file taxes for a few years. I hope he got that worked out with the IRS (they can be reasonable about it if you try to straighten it up before they notice you). To counterbalance this, the IRS has a reputation for being slow but relentless when getting its money, so while many people will underreport income and cheat in other ways, very few try outright not paying.

      Now, there are various ways for an employer to hire people: regular employee, salaried employee, and contractor, to name three, which have different obligations. For example, hiring a regular or salaried employee will put you into the unemployment compensation system, which does not happen with a contractor. This means that an employer is likely to try to reclassify regular employees as salaried, or employees as contractors, to evade various potential costs and record-keeping. Sometimes this is legal but the people being hired will want more compensation, and sometimes it is found flat-out illegal because there are certain requirements.

      In this case, I'd suspect that the people doing the work may not have qualified as contractors, but since I post to /., and therefore never RTFA, I don't know whether there was any such dispute in the trial.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
    5. Re:The american tax system by Anonymous Coward · · Score: 0

      "If you elsewmake your money from investments or other kinds of alternate employment, that's when you start owing tax. Most people who fall in to this category are rich."

      Or unemployed. After being unemployed for several months (the aviation industry sucked last year)and drawing unemployment benefits, I got a W-2 from the state which read "screw you." You must pay income tax on your unemployment, oh and by the way we didn't bother telling you about this beforehand or withholding anything. Have fun paying your tax!

  30. Kahreâ(TM)s Prosecutors Are Going Nutso by Anonymous Coward · · Score: 0

    More useful information about what is really going on here:

    http://www.fff.org/blog/jghblog2009-06-12.asp

  31. Free Speech by Anonymous Coward · · Score: 0

    Free speech means the freedom to say _anything_.

    While I may not agree with some troll suggesting death, hatred, or the holocaust didn't happen, doesn't mean he shouldn't have the right to anonymous free speech.

    The anonymous part is very essential. With the boondoggle of an election in Iran, the Tiananmen Square anniversary, etc. the need for anonymous free speech is essential. The Military Industrial Complex fears the pen more than the sword.

    1. Re:Free Speech by HikingStick · · Score: 2, Insightful

      Free speech means the freedom to say _anything_.

      They may be free to say anything, but they must be willing to accept the consequences of what they say in many cases.

      Courts have long held (arising out of common law) that some forms of speech are not protected. We have long (even since the time of the framers) had limits on speach: libel and slander. We also have laws that treat threats not as free speech, but as a form of assault (differentiated from striking someone: "battery"--the treatment of "assault" and "battery" will vary depending on the jurisdiction where you reside).

      A free people should always be free to express divergent opinions, but there are limits when what is said or written becomes a direct assault on another.

      --
      I use irony whenever I can, but my shirts are still wrinkled...
  32. IRS is right on this one by davidwr · · Score: 5, Interesting

    What this guy did was essentially barter gold bullion that happened to be in coin form for labor.

    Even if the US government is required to trade a $20 bill for your $20 gold piece, that does not establish the value of the gold piece for tax purposes.

    Even a $20 bill can be worth more than $20 if it's a collector's item, such as one that's in an uncut block, one that's old and still in original condition, one that's very old, or one that's been autographed by hand by the Treasurer of the United States or Secretary of the Treasury whose signature appears on the bill.

    If I pay my employees in collector-value currency, you bet the IRS will consider it a barter-for-labor arrangement and tax accordingly.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    1. Re:IRS is right on this one by Fallingcow · · Score: 1

      Even if the US government is required to trade a $20 bill for your $20 gold piece, that does not establish the value of the gold piece for tax purposes.

      As mentioned by a poster somewhere upthread, it would make more sense to tax the actual value of the coin when and if the employee sells it as bullion.

      In the mean time, as the GP suggested, the guy may be (probably is) in violation of minimum wage laws (unless he wants to say he's bartering with the coins as gold rather than at their face value, in which case the gold value should be taxed--either way, he's probably breaking the law, but different laws)

    2. Re:IRS is right on this one by manekineko2 · · Score: 1

      But in this case there's no allegation these are collectible coins, they are still in circulation.

      So if the price of nickel or copper were to shoot up, would you owe more in taxes if you were paid with those denomination coins than in bills?

    3. Re:IRS is right on this one by GNT · · Score: 1

      Actually .. it does. It is never the general market that sets the price but the transaction involved. It doesn't matter what the hypothetical resale value is only what it actually sold at -- houses are the prime example, cars ditto. It's only in the topsy turvy world of the IRS that bullshit like what you said above has any meaning.

      The IRS is fundamentally an illegal unconstitutional organization that should be disbanded as soon as possible. Along with the FDA, DEA, BATF and OSHA for starters and we can work from there.

      Twelve Visions Party -- here we come!

    4. Re:IRS is right on this one by DragonWriter · · Score: 1

      As mentioned by a poster somewhere upthread, it would make more sense to tax the actual value of the coin when and if the employee sells it as bullion.

      As part of the arrangement was that the employer offered to immediately redeem the coins for their investment value, that makes no difference. Because the value of the payment is then the value of the what the employee is entitled to, which is the greater of the investment or face value of the coins (since, under the arrangement, the employer has made a agreement to pay either at the employee's choice.)

      Of course, that it is tax evasion, rather than avoidance, is obvious from the fact that is ignored in most of the comments: the employer didn't report any income to the IRS, whether at the real value of the arrangement or at the face value of the coins, and didn't withhold any of the required taxes from the payments.

      This was a multi-layer tax evasion scam.

    5. Re:IRS is right on this one by mattwarden · · Score: 1

      You better not pay your employees in pennies and nickels, then! The IRS will be knocking on your door for not reporting the higher material value and trying to avoid taxes by using their face value.

  33. Re:Fucking losers by Anonymous Coward · · Score: 0

    Off topic, but is anyone else seeing the credit line as " by Anonymous Cowardon Wednesday June 17" It still has the space, but CSS is fucking it up. Of course, this is /.

    on FF3.0.11/Win7

  34. wrong by Reality+Master+201 · · Score: 1

    American workers are taxed on the dollar value of their earnings - this is typically payment in cash, but if you receive non-monetary compensation as part of your employment, you're still responsible for paying taxes on the dollar value of that compensation. The value of the gold coinage was far higher than the currency face value - which was the whole point of giving it instead of normal greenbacks or a check.

    1. Re:wrong by vlm · · Score: 1, Insightful

      American workers are taxed on the dollar value of their earnings - this is typically payment in cash, but if you receive non-monetary compensation as part of your employment, you're still responsible for paying taxes on the dollar value of that compensation.

      Which was the subject of not one, but two recent slashdot stories where the IRS would enjoy taxing individuals for their portion of company provided cell phone service used for personal use, non-monetary compensation.

      Also there is ample tax case law about unusually low valued "gifts" to avoid gift and inheritance taxes. The dude is either liable for violating minimum wage laws, or not paying gift taxes, or is falsifying his financial documents. How he accounts for buying 1 oz gold coins for $1000 and paying his employees at "$20" is going to be pretty weird on ye ole income statement, unless he declares a profit of $980 and pays the appropriate tax on that profit...

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    2. Re:wrong by teg · · Score: 1

      How he accounts for buying 1 oz gold coins for $1000 and paying his employees at "$20" is going to be pretty weird on ye ole income statement, unless he declares a profit of $980 and pays the appropriate tax on that profit...

      That must be a tax deductible loss surely ;)

    3. Re:wrong by clone53421 · · Score: 0

      American Eagles are legal tender.

      If I pay someone in $100 bills, you claim it should be taxed according to the $100 face value instead of the worthless penny or two the bills are worth.

      But if I pay them with a $50 American Eagle, I'm supposed to ignore the $50 face value and value it according to the intrinsic material worth.

      It's contradictory. Bot do you notice how the IRS always wins?

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
    4. Re:wrong by clone53421 · · Score: 1

      Reply to my comment instead of moderating me "overrated", dimwits. "Overrated" is not the "-1 Disagree" mod.

      And yes, slashdot allows anonymous posting, and no, it won't cancel all the moderation you've already done in this thread. So have at it.

      --
      Alexander Peter Kristopeit bought his basement from his mommy for one dollar.
  35. Wrong! by Hurricane78 · · Score: 1

    If they want to find you, they will;

    Try that with someone posting trough an anonymizing non-logging proxy that self-destroys as soon as its surrounding force fields change even a bit. :P
    (Ok, in reality someone switching it off, removing/addingg hardware or logging in (honeypot anyway), is enough. But even my little linux server here can do this.)

    A classic case of lack of imagination. ;)

    --
    Any sufficiently advanced intelligence is indistinguishable from stupidity.
  36. Anonymous Newspaper Commenters Subpoenaed in by Anonymous Coward · · Score: 0

    ...Jury Death-Threat case. There, fixed it for you.

  37. Stupid question by shrubya · · Score: 1

    Sheesh. Why a whole article? This is not a difficult question.

    Anonymous comments are a great choice for speech that is legal, but might expose a public speaker to social consequences: reviews, dark humor, political criticism, whistleblowing, etc.

    Anonymous comments should not be a shield for speech that is an illegal attack on others: libel, threats, intimidation, etc. If you want to say that kind of stuff, be prepared to own up to it.

    1. Re:Stupid question by Anonymous Coward · · Score: 0

      So, is someone with dirt that includes, say, trade secrets about a company a whistle-blower, or just someone who is threatening and intimidating the company? Should they go for the great choice of anonymity and be shielded, or should they own up to their libel and get sued? And who decides and how?

      / posting anonymously to escape the social consequences

    2. Re:Stupid question by JRHelgeson · · Score: 1

      Oh yeah? I keeeel you!!!

      Oh, crap, I forgot to click the Anonymous Coward Box...

      --
      Good security is based upon reality and common sense. Common sense is a function of having common knowledge.
  38. RTFA first by freedom_india · · Score: 2, Insightful

    The money is printed by the Federal Reserve and NOT by the Federal Government. Sheesh, don't you know the difference?
    It is legal tender for all debts.
    The IRS is NOT prosecuting him for paying in Gold. The IRS doesn't care how you pay someone. Gold, Silver, mud, iron, hell in Nevada even Sex.
    What it cares about is its value in USD.
    In this case this guy paid in Gold, whose real value is more than what its face value states.
    RTFA and research before you open your pie hole.

    --
    "Doing what i can, with what i have." ~ Burt Gummer
    1. Re:RTFA first by Anonymous Coward · · Score: 0

      err...you DO know that 1 cent is worth more in metals than its face value, right ? so if i pay you in cents instead of dollars or with a cheque, you should declare more income to the IRS ? or i should declare your salary is worth more to the IRS ?
      RTFA and research before you open your dumb hole.

    2. Re:RTFA first by Maximum+Prophet · · Score: 1

      Right. Unless he had a huge cache of old coins, he was buying the coins at over face value, paying them to employees, then reporting and withholding based on face value. That's tax fraud.

      If an old guy had a kid mow his lawn for $20, then paid the kid in a $20 gold piece, the kid would only have to report $20 of income until he sold the coin, then report the difference as income. If the kid uses the coin to buy $20 worth of merchandise, he's ok, it's up the the next guy to sell the coin at a profit and claim the income.
      If an employer routinely tried to use this to game the system, it's fraud.

      --
      All ideas^H^H^H^H^Hprocesses in this post are Patent Pending. (as well as the process of patenting all postings)
    3. Re:RTFA first by tnk1 · · Score: 1

      At certain points in the past, coins that are made of other metals are worth more than their face value in metal costs. Do we suddenly become tax evaders for paying people in pennies?

      Also, usually the metal cost of a coin is less than its face value. Since the government doesn't care about the face value, according to what you are saying, then do we get tax discounts for being paid in money that is worth less than its face value?

      The Federal Reserve may not be "the government", but its notes and the coinage is legal tender for all debts, public and private. They have that authority by law. So, the government is saying that they will accept their money, even if its not directly made by the "government".

    4. Re:RTFA first by Archangel+Michael · · Score: 1

      The IRS is NOT prosecuting him for paying in Gold. The IRS doesn't care how you pay someone. Gold, Silver, mud, iron, hell in Nevada even Sex.

      Couple of problems here. How much is sex valued? Do we charge every act of sex with the same value? Would having sex with Cowboy Neal be worth more or less than sex with Milla Jovovich?

      Did Bill Clinton have to pay for that blowjob he got from Monica as taxable income, and what is the fair market value of that blowjob?

      IRS tax laws are stupid, arbitrary and capricious, and as such, should be deemed illegal.

      I'm wondering why some industrious lawyer hasn't taken this kind of logic into court? I think I could have the jury in stitches, laughing so hard at how ridiculous the IRS is in all of the rules it has.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    5. Re:RTFA first by GNT · · Score: 1

      No -- it's the artificial premium they think that he is delivering to them when gold is valued in FRN's. The REALITY is he is paying them the face value of what used to be proper (gold/silver) dollars. This debate only exists because of the fake fiat money called the Federal Reserve Note with an alleged face value of dollar. Never mind in real terms the dollar has fallen well over 90% since the inception of the federal reserve.

    6. Re:RTFA first by freedom_india · · Score: 1

      IRS is just hired hands.
      The real culprit is congress which passes laws that force IRS to act stupid.
      Making a jury laugh does not change the law.
      Unless the law is in direct violation of the constitution, a judge will not rule in your favor even though you can prove the law is stupid.

      --
      "Doing what i can, with what i have." ~ Burt Gummer
    7. Re:RTFA first by Archangel+Michael · · Score: 1

      Ever heard of Jury nullification. IF a law is unjust, the jury has the right to judge the law itself.

      The Justice system doesn't like to promote this, but it is there. The Jury is the last stand against a tyrannical government. Which is why we have a jury of peers, and not professionals.

      Juries can change laws. The problem is getting a jury to know this fact without being able to tell them. It is generally not allowable to tell the jury that they have a right to decide if the law is just or not.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
  39. I'll bite on this by phorm · · Score: 5, Informative

    Since I previously worked in a company that's primary business was in running (and selling advertising on) web-forums, I suppose I'd be as qualified as anyone to answer this:

    a) The default behaviour of the software is to record IP addresses. It's not like most companies are building their own, they're using something like vBulletin, IPB, or possibly PHPBB. I'm not even sure if this is a feature that could be disabled without a plugin/hack

    b) Basic security is tied to IP. Just as does slashdot, so do other forums get their share of trolls. You actually don't see it a lot here, but penis-enlargement, pr0n, scams and spam are also fairly common. The IP address is your only semi-reliable link to a real person, in which case you can block certain IP's or netblocks that become an issue, track down users with multiple accounts. I do say semi-reliably as IPs can be routed through proxies etc, but many boards actually have RBL's for known proxies

    c) Advertising, which for many boards is the chief (or only) source of revenue, often ties to IP address. Most programs collect statistics by IP, and also other fun stuff like geo-targetting, rotation (so you don't see the same ad a gazillion times in a row), etc

    d) User related to locality can be fairly well-determined by IP. If you've got issues where all your users in the Eastern US connect slowly/poorly, or possibly where you have many users in Western Europe but they have a shit connection, then it may lead you to consider adding services (local server, cache, or whatever) in those areas.

    e) The last thing I can think of off the top of my head is statistics, which are also very important to many web-boards to see where they're growing and where they need improvement.

    And yes, these work fairly well for 95% of the John-Doe users. Most people, even those who consider themselves clever, don't make much use of proxies or other such things to post secretly on boards, which allows the wheat to be filtered from the chaff fairly well based on IP. Until a better method comes along, it's probably the best way.

    p.s. Don't use my own board as an example of something spam-proof. It's using different software than I used at work, gets very little time dedicated to it, and the spam-collection is actually something of interest while I try to come up with fun methods of dealing with the spammers.

  40. One more... by wiredog · · Score: 1

    Scott Roeder

  41. What is with the Slashdot support for crime? by scruffy · · Score: 3, Insightful

    I am surprised at the number of Slashdotters who support tax evasion and violent threats.

    1. Re:What is with the Slashdot support for crime? by Anonymous Coward · · Score: 0

      if I'm your emplyer and I pay you in quarters rather than dollars, how precisy is that tax evasion? If here is a problem withthe way the legal currency is setup in this country, it's the governments responsibility to fix it not punish people for noticing.

    2. Re:What is with the Slashdot support for crime? by scruffy · · Score: 1

      It's obvious that the intent was to pay the employees with goods valued at one price that they could readily and anonymously sell at a much higher price without having to pay taxes on the difference.

    3. Re:What is with the Slashdot support for crime? by Xarin · · Score: 1

      I think the biggest problem is that the employees did not pay their taxes using gold coins. If one gets paid in gold coins and pays their taxes in gold coins there would not be a problem. If one gets paid in gold coins and pays their taxes with fiat money then one is manipulating the system.

    4. Re:What is with the Slashdot support for crime? by KiahZero · · Score: 1

      A libertarian ethos combined with a belief that knowledge about technology implies the ability to outsmart the law leads to an unhealthy level of tax idiocy.

      --
      I'm a lawyer, but not yours. I wouldn't represent someone who thinks taking legal advice from Slashdot is a good idea.
  42. Gold coins in circulation? by davidwr · · Score: 1

    But in this case there's no allegation these are collectible coins, they are still in circulation.

    This is about gold coins.

    Um, as far as I know there are no gold or silver US coins in circulation, save for a few pre-1965 silver pieces and pre-1970 half dollars that haven't been pulled yet and perhaps contrived cases like this one, where someone ostensibly "circulates" coins "at face value" knowing good and well they will leave circulation immediately.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    1. Re:Gold coins in circulation? by Anonymous Coward · · Score: 0

      i am not going to take credit for this, but yes there are as another poster showed.

  43. There's a difference... by sean.peters · · Score: 3, Insightful

    There's a difference between anonymous threats to random posters on the internet, and anonymous threats directed at jurors in a criminal trial. Obviously, threats to jurors have the possibility of subverting the criminal justice system... which is a pretty big deal. I think the owners of the board ought to cough up the names.

  44. already taken care of by davidwr · · Score: 1

    Re-read the grandparent post. I just threw in a few things he forgot.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
    1. Re:already taken care of by Anonymous Coward · · Score: 0

      Whoosh!

  45. This employer ROCKS!! by cagrin · · Score: 1, Flamebait

    If more employers started paying their workers in "real" money (not that fiat crap they normally give you) the bankers would be in uproar, lol. This guy should be given a medal for sticking it to "the man"...few people are this awake, hope he gets a good lawyer. ...and in case you haven't seen it yet: Freedom to Fascism, by Aaron Russo ...and a recent interview with Joe Banister(a former IRS agent) who appears in the previous linked movie.

    --
    ~ awaiting spiritual enlightenment ~
    1. Re:This employer ROCKS!! by geekoid · · Score: 1

      You clearly do not know how banks operate. They did not want to loose the gold standard, however it is way to unstable to run a country in a global world.
      A) A country with enough money could facially ruin you in a day
      B) even not manipulated the value of what you own changes significantly from hour to hour.

      There are GOOD reasons for getting rid of the gold standard, and non of them have to do you banking or government conspiracies.

      I remember when it happened.

      I highly suggest you look at financial articles and look at the market and the global events from the time before yapping off and looking foolish. The linked movie are nothing more then logical fallacies, paranoia, and ignorance. In short, nothing new.
       

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    2. Re:This employer ROCKS!! by cagrin · · Score: 1

      It is enough to know that the Federal Reserve is a privately owned cartel by foreign bankers that charges interest to a complicit government for it's own money. There is a movement currently to audit the Federal Reserve to find out where the TRILLIONS of bank bailout money went (for they won't tell congress where the money went) in case your ignorant ass didn't know.

      Give me control of a nation's money and I care not who makes her laws. -- Mayer Amschel Rothschild

      Damn sheep.

      --
      ~ awaiting spiritual enlightenment ~
    3. Re:This employer ROCKS!! by GNT · · Score: 1

      No. Governments got off the gold supply so they could deficit finance. And look how that turned out. All the criticisms of the Gold Standard came from folks that wanted to escape fiscal responsibility and spend via inflation and deficit financing. At any given level of the money supply, including a gold one, the prices adjust to allow both profit and expansion. In other words, the primary criticism, that the gold supply limits growth, is chimera, the only growth it ever limited was the confiscation of wealth by governments via inflation.

    4. Re:This employer ROCKS!! by cagrin · · Score: 1

      It is a testimony to the remaining ignorance out there that my comment would be tagged as "flamebait"...i expect more from slashdotters :(

      --
      ~ awaiting spiritual enlightenment ~
  46. [Obscene Gesture] by Anonymous Coward · · Score: 0

    And a big Hawaiian good luck sign to the prosecutors. Come and get me, coppers!

    Oops ... is this anonymous?

  47. The IRS uses the "Fair Market Value" standard by sampson7 · · Score: 1
    The IRS taxes all wages and other forms of compensation based on the fair market value of the items or services provided to the employee. From the IRS website:

    Wages not paid in money. If in the course of your trade or business you pay your employees in a medium that is neither cash nor a readily negotiable instrument, such as a check, you are said to pay them "in kind." Payments in kind may be in the form of goods, lodging, food, clothing, or services. Generally, the fair market value of such payments at the time that they are provided is subject to federal income tax withholding and social security, Medicare, and FUTA taxes.

    Apparently, the tax cheat is arguing that gold coins are cash. I think the more reasonable interpretation is that gold coins are not "a readily negotiable instrument," and thus fall under the definition of an "in kind" payment. In kind payments are taxable at the fair market value "at the time they are provided" to the employee.

    Really, this particular IRS rule is a common sense rule of reason. Moreover, the "all debts" language is not unlimited. The classic example is that someone does not have the right to pay their traffic fine in pennies just to spite the court. Really people -- not that complicated.

    1. Re:The IRS uses the "Fair Market Value" standard by Anonymous Coward · · Score: 0

      Agree with everything you said. How did he obtain the gold coins in the first place? I don't think he's a coin collector, so I assume he purchased them to pay the workers. Therefore, he already paid the "fair market value" at the time for the coins, and the IRS should have an easy case proving blatant tax evasion.

    2. Re:The IRS uses the "Fair Market Value" standard by GNT · · Score: 1

      And properly, everyone and your mother included, ignore this IRS barter "other forms of compensation" bullshit.

      If you think about it, everyone working for labor has no profit because they trade a zero-sum --- time for money. The value of their time is in fact their wage, and thus there is no profit technically. Only the IRS with it's absurd nonsense of "standard deductions" forces a minimalist time valuation on you and taxes the difference.

      And they do have the right to pay their traffic fine in pennies because it IS legal tender and there are several cases where this has happened much to the chagrin of the officials involved.

      It is the End of the Age of Authority, which is the only thing that is good from the Obama election.

      Twelve Visions -- Here we come

    3. Re:The IRS uses the "Fair Market Value" standard by gknoy · · Score: 1

      If the coins are US legal tender, regardless of compositional vaue, wouldn't that make them by very definition "cash"?

    4. Re:The IRS uses the "Fair Market Value" standard by sampson7 · · Score: 1

      Even with your interpretation, we end up with a conflicting statement in the IRS regulations. On the one hand, the coins are legal tender. On the other hand, they are not readily negotiable instruments. When there's a potential conflict between different terms of a statute or regulation, in the law, we have a decision tree framework that generally goes under the term "rules of statutory construction."

      First, does the common sense reading of the statute follow resolve the dispute? If not, then go to step two.

      Second, is there a way to interpret the statute and apply it to the underlying facts in a way that resolves the ambiguity without torturing the language? If not, go to step 3.

      Third, look to the underlying intent of the statute (including legislative history and general purpose clauses) and adopt the interpretation that results in the most just outcome.

      Fourth, go to court and argue that the statute is constitutionally vague.

      I think no matter which step you adopt, the outcome is the same.

      PS -- Note, this is a highly simplified list of statutory construction principles and would never past muster in a legal brief. But you're not paying me for a brief, now are you?

  48. I'd like to take this opportunity to... by 2obvious4u · · Score: 0, Troll

    promote the "Fair Tax".

    Under the fair tax this would not have been an issue, since income would have never been taxed. There would have been no way for the payroll company or those being paid to avoid taxes since the collection of those taxes would have been at point of sale of goods. There would also be no reason for tax shelters or any of the other evasion tactics people currently use to pay less income tax.

    http://www.fairtax.org/

  49. Per TFA... by sean.peters · · Score: 1

    If I don't sell, however... its just face value, right?

    Per the fine article, they did sell. They took the gold coins and immediately turned them around for their value as precious metal (or as collector's items, but either way it's the same). They made substantially more than the face value. Accordingly, they owe tax on the actual value.

    Your example is interesting, but it's not the situation actually being discussed here.

    1. Re:Per TFA... by Rockoon · · Score: 1

      Per the fine article, they did sell. They took the gold coins and immediately turned them around for their value as precious metal (or as collector's items, but either way it's the same).

      I'm reading a different article. I'm reading one where the EMPLOYER is also being prosecuted.. a person who didnt sell any, but instead purchased labor with them.

      Hard to put a price on labor without being one of the ones bartering, beyond the lower enforced limit called minimum wage.

      --
      "His name was James Damore."
    2. Re:Per TFA... by honkycat · · Score: 2, Interesting

      The employer is required to pay taxes on the amount he pays his employees. As long as the employees properly accounted for the extra income they obtained by selling their currency above its face value, they would not be violating the law (except perhaps for conspiracy or the like if they were more involved in the employer's scheme). The employer, however, clearly knew of the excess value beyond the face value and that needs to be reported.

      It's not that hard, or uncommon, to force reasonable values on exchanges like this. In Massachusetts (and probably other states), when you buy a used car, your sales tax responsibility is based on the blue book value for a car of that age and condition, not the actual selling price. This prevents tax dodging by under-reporting the sale price and using some other transaction or gift to hide the actual price. Even beyond minimum wage, it would not be hard (nor unreasonable) to compare the value of the exchange with the going rate for the service in question. If it's way out of whack then asking why is quite sensible. In this case, it's absolutely clear that the intention is to hide wages, and that violates the law.

  50. Capital gains vs. income by kthejoker · · Score: 1

    The chief advantage to this scheme is to hold on to the coins for one year. They then become long-term capital gains, and if these employees are in the 10 or 15% tax brackets then they won't pay any taxes on the sale of the coins after that.

    Of course if they're in the 10 or 15% bracket and this is their only source of income they probably can't afford to wait a year to sell them. C'est la vie ...

  51. Doesn't matter by sean.peters · · Score: 1

    When you sell them for more than the face value, you get taxed on what you sold them for. Which is what the people in this article did. This is pretty clearly tax evasion.

    1. Re:Doesn't matter by vlm · · Score: 1

      When you sell them for more than the face value, you get taxed on what you sold them for. Which is what the people in this article did.

      This is pretty clearly tax evasion.

      Your two quotes are logically inconsistent. I say either you pay the correct tax and its all good, or you evade the tax and possibly pay the consequences. Your quotes say you do both at the same time because gold was involved?

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    2. Re:Doesn't matter by YouWantFriesWithThat · · Score: 1

      irrelevant to this particular thread, cowboy. why don't you mosey on up to the GP and practice your reading comprehension for a minute before you go shooting your pistols off into the air.

      you position your reply as a disagreement, but you can both be right in this case. ain't this a great country?

    3. Re:Doesn't matter by donaggie03 · · Score: 1

      GP is saying that when you sell coins for more than the face value, you get taxed on what you sold them for. GP did not say they actually paid that tax, which is where the tax invasion part comes in. When GP says "which is what the people in this article did." He's saying they sold the coins for more than face value. He wasn't trying to say that they actually paid the correct tax. He's trying to say the opposite.

      --
      Three days from now?? Thats tomorrow!! ~Peter Griffin
  52. Tenth Amendment by Icegryphon · · Score: 2, Informative

    "The powers not delegated to the United States by the Constitution,
    nor prohibited by it to the States,
    are reserved to the States respectively, or to the people."

    Just thought the Federal Government should be reminded.

    1. Re:Tenth Amendment by someguy · · Score: 1
      --
      A planet where apes evolved from men? Long live the apes.
  53. Hanged by l00sr · · Score: 1

    The non-authenticated comments section of the original article brought a lot of supporters out of the woodwork, including a few who thought the jury should be hung

    I fail to see how the jury's penis size is at all relevant to this case.

  54. Different Laws by ratboy666 · · Score: 1

    The value of a US Gold Coin is, to the government, precisely what was marked on that coin. Since it is not legal for citizens to physically destroy that coin, rendering it into bullion, its value remains that.

    Now, you could sell that coin elsewhere (I am sure that the coins can be converted to bullion in other countries), and thus achieve a profit, but that is dealt with by other provisions.

    The ONLY danger in the US itself is paying in such currency is a severe de-valuing of paper currency. Given that an ounce of gold runs $900 or so in paper currency, 10 to 20 coins will pay for a car! That values the car at $500 to $1000, and not $9000 to $18000. An order of magnitude.

    The taxes from this transaction are now severely limited - a mere tenth of what they were. Think of it - two different prices, depending on what currency is used. This is not unusual, pricing is set according to currency value by all international companies.

    The error made by the US was to fix a face value on the American Eagle. The Krugerrand, directly comparable, has no such face value. Its value is the value of 1oz of gold bullion. That same car also costs 10 to 20 coins. But, there is no disparity between face value and "paper value".

    Introducing the face value means that a section of the economy could choose to "live in the past" and simply accept that valuation. Which is why the government attacks -- people just "shouldn't" be doing that sort of thing. It's almost as if, you know, the government could be held to task for the valuation!

    Let's use a "J. Random" quote we find on the Internet (actually from a user aikitrader, but who really cares?):

            "OK...take Americans for instance....we know with reasonable certainty that a 1 oz Gold American Eagle contains one ounce of Gold. Now if I were trading a car for Gold and my car is worth $1120...I would ask for 2 Gold Eagles in return today. How many $20 Swiss Francs would I ask for? I am not sure of the Gold content in the $20 Swiss Franc? So I don't want to trade my car for a Swiss Franc because I am not sure of it's value. I am not familiar with it."

    We can plainly see that aikitrader is converting paper US currency, gold content, and Swiss currency. As we also note, all of these have a marked face values. aikitrader will use face value for paper, and for swiss currency. But for American Eagle coins contemplates the transaction in terms of NUMBER OF COINS, and not really face value. What is the price of the car? Simple enough, it is $1120 in paper, two American Eagle coins, or the equivalent in face conversion in Swiss Francs. What is the face value (US government valuation) of the American Eagles? $100. As long as aikitrader is NOT destroying the coin, she can value it as she chooses, and the government values it at $50.

    A tax issue? I think not. And, if you (presuming you live in the US) think it IS, I would recommend another revolution. Simply because you can't trust your government anymore. The issue shouldn't even come up -- even if the government wanted to control it, there are much better remedies than tax law. Simply buy up the damn coins. The government issued, they should be able to de-issue. It's done all the time with other currency.

    I can give a clue to the US Government here - stop minting the damn things! Face value of $50 and initial sale of $1000 paper, with a continued valuation of $800 or so... the government is really screwing with your heads.
       

    --
    Just another "Cubible(sic) Joe" 2 17 3061
  55. Comment removed by account_deleted · · Score: 1

    Comment removed based on user account deletion

  56. Fine. by bezking · · Score: 1

    First off, I think that what this guy did is just hilarious. Secondly, I totally agree with such a subpoena - Prosecutors wouldn't want someone on the jury who posted in support of this guy; likewise, the defense wouldn't want someone on the jury that believes that this guy should go to jail for 25 years. Hmmm.....

  57. Ha Ha by Anonymous Coward · · Score: 0

    I sank the Titanic. I just stole a penny. I'm gonna get all you suckas!

    Ha Ha, come and get me fuckers!

  58. HANG THEM ALL!!!!! by gzine · · Score: 0

    So say I.

  59. spam fix by Anonymous Coward · · Score: 0

    If you want to get rid of the spam problem, just stick a meaningless field in your form and hide it with css. If the form is submitted with a value in that field, then reject it silently. It is a stupid little trick that could be easily by-passed, but nobody bothers with this and I have been using it successfully for years.

  60. Re:IRS cannot tax bartering by tekrat · · Score: 1

    So, if you help me move my furniture, and I treat you to dinner afterwards as a sign of appreciation for the help, the IRS is "right" to tax you for the meal as "income"?

    By that definition, everything is taxable, right down to Pokemon cards. I hope your kids have filled out their 1099's properly, as that Pickachu card is pretty valuable!

    --
    If telephones are outlawed, then only outlaws will have telephones.
  61. Fat chance...:( by KingAlanI · · Score: 1

    As a collector, I often canvas banks looking for unusual currency items like $2 bills, half dollars, et cetera. It's hard enough to find those [many of which aren't worth much above face value], let alone $20 gold coins that are worth hundreds...

    Somebody might get lucky [from a thief, desperate owner or ignorant owner depositing them], I'm not even sure how the banks would handle such things

    --
    I listen to both RIAA and non-RIAA stuff if I like the music, tangential business/politics nonwithstanding.
    1. Re:Fat chance...:( by ImprovOmega · · Score: 1

      The banks wouldn't handle it. The teller would complete the transaction, put a $20 bill from their wallet/purse in the drawer and keep the $20 gold coin for themselves.

    2. Re:Fat chance...:( by Cardcaptor_RLH85 · · Score: 1

      There was a case like this in the local newspaper recently. An older woman cashed 6 $20 gold coins. The teller gave up $120 cash out of his pocket and pocketed the coins. He was subsequently fired and the bank (IIRC a Chase branch) manager noted that their tellers are supposed to inform patrons of the true value of their coins before accepting them.

  62. Muhahaha... by Anonymous Coward · · Score: 0

    I am going to slaughter everyone who currently lives. All people, everywhere. Slowly, and painfully. The entire World shall feel my wrath!!111!11One1! And I shall start with YOU!

  63. Wrong person in court? by PPH · · Score: 1

    If someone payed me in gold coins, it would be up to me to declare the proper amount of income not them. So why is this guy charged with a crime?

    It seems like this is a scare tactic by the IRS to recruit businesses into becoming tax enforcement agents against their employees.

    --
    Have gnu, will travel.
    1. Re:Wrong person in court? by /dev/trash · · Score: 1

      because, smartie pants, the employer ALSO has to pay taxes, on what they pay you.

    2. Re:Wrong person in court? by PPH · · Score: 1

      because, smartie pants, the employer ALSO has to pay taxes, on what they pay you.

      From TFA:

      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.

      --
      Have gnu, will travel.
    3. Re:Wrong person in court? by /dev/trash · · Score: 1

      yeah, see that's not really how being a contractor works.

      Also wth reads the article?

  64. How do you canvas a bank? by denzacar · · Score: 1

    Not trolling or anything, I just find the comment intriguing and would like to hear more about that.

    --
    Mit der Dummheit kämpfen Götter selbst vergebens
    1. Re:How do you canvas a bank? by KingAlanI · · Score: 1

      I suppose "look" or "check" may be better words.
      I go into a bank branch, ask all of the present tellers if they have any of the things, and then trade an appropriate amount of other denominations for them.
      I check several banks in the area, and check them often.

      To the tellers, the relatively small volumes of $2 bills and half-dollars are probably a nuisance, so they probably like having someone take them off their hands. (Thus, I can easily trade for $2s/halves/etc even at many places where I don't have an account)

      --
      I listen to both RIAA and non-RIAA stuff if I like the music, tangential business/politics nonwithstanding.
    2. Re:How do you canvas a bank? by denzacar · · Score: 1

      Thanks for taking the time to reply.

      --
      Mit der Dummheit kämpfen Götter selbst vergebens
    3. Re:How do you canvas a bank? by KingAlanI · · Score: 1

      You're welcome.
      Fairly easy to check the "my comments page"; occasionally turns up useful things such as this.

      --
      I listen to both RIAA and non-RIAA stuff if I like the music, tangential business/politics nonwithstanding.
  65. This played out in Anchorage: (anadventurer.com) by AnAdventurer · · Score: 1
    Now we get our news online. It wasn't so long ago that we sat in our living rooms or at the table in the dinning room or in the backyard, coffee shop and read the news. We also had news casts at 5 and 11 nightly. I am in my 30's and I remember it well. But now the news is on the Internet. When a newspaper sales person comes to the door to sell me the Anchorage Daily News for delivery I ask them if they know it's free on the Internet. They respond every time with "but you can't get the coupons there" I point out that "Yes, in fact you can get coupons on the internet" and "why would I pay $60 a year to get free coupons in the paper? and did you know other people mail us piles of local coupons also for free?" It goes do hill from there "Yeah, well you can take the newspaper with you" and I respond with "You know the Internet is everywhere right?" Hey, it's not my fault that they pick a bad product to sell.

    The rise of the anonymous blogger. At some point a bunch of geeks thought it would be great IF everyone could contribute to the content on the internet. Not in the way it was being done at this point with those horrible free websites from geocities that popped up an ad every time you went to a new more horrible page on the Hampsterdance website. The came up with Web 2.0 and a bunch of communist type ideas of everybody contributes. This is both inevitable and a horrible idea. To sum it up Wikipedia. (but your keyed in, you know that already).

    Where it gets interesting. Some open source web geek took the discussion forum and added it to the bottom of real news at a real news source. No longer were forums about expensive cats, jeeps and how awesome Jesus is. Now "sparkelshoes1978" can voice how she feels about North Korea trying to launch a rocket into space. Or "redneckforever" can comment on "3 cavers rescued after 2 days trapped in mine". You can see where this is going.

    Why anonymous blogging is BAD. If you are posting under a pseudonym you think you can write what ever you want, that makes some people mean and makes some people make stuff up. I read a bunch of news sources online. Let's take 3; cNet, Politico, & ADN. cNet: Blogger's are mostly civil. I would put it at about 90% Arguments happen, but mostly it's not mean spirited. Politico: Down right horrible, mean, lying bloggers mixed with a few humans. Just filled with hate speech. 90% nasty, I just don't bother posting my opinion there. ADN: Rude, mean spirited bloggers mixed with white unpleasant racists. About a 50/50 mix. There seems to be no way to fix this issue. Censures and self reporting work to some degree, but it in the best interest of the outlet to have a reason to keep users coming back so they only try hard enough to fuel the fire. Add in the ability to write a scrip to do what you want (flag other users, boost your rating, bump others down, post a link to a virus or porn) and it compounds the problem.

    Why anonymous blogging is GOOD. For the exact same reasons as why its bad, you post an honest opinion and some wacko takes issue with it and you and wow, Google says you live two blocks away (if you used your real name). Lets take Ben Franklin or Mark Twain. Both wrote under pseudonyms (Twain was the pseudonym) for different and obvious reasons.

    "Whistle Blower" there are comments about the news on the site, then there is a blog. Like mine (where you can find my real name and GPS position if I have it on) and some like my friend Alaska Mundflats who I have known for over 10 years and had no idea she was behind this "Anonymous Blog" until she was outed by a Representative Mike Doogan (D) (Asshole). Why? Even though "AKM" mostly wrote about NPD Sarah Palin, apparently AKM made the mistake of calling Doogan on bad email etiquette. Mr. Doogan also used to work at the Anchorage Daily News. AKM had a user account there (which I am assuming she created before she was an award winning blogger and hence used her real name when she signed up). Do you see where this is going? Mike Doo

    --
    6.8SPC TR of 550, l xwind at 6, drift rt at 26" drops 77". AT has 503 ft-lbs at 1403 fps. FT 0.86
  66. Opinions Not Threats by Anonymous Coward · · Score: 0

    Calling for someone to be hanged is not the same as threatening to hang them. Yet I must remain.. a coward.

  67. Re:IRS cannot tax bartering by KiahZero · · Score: 1

    Categorically, yes. Income, for the purposes of the tax code, is defined as any economic benefit or clearly realized accession to wealth. That specifically includes barter in exchange for services.

    Thus, if a furniture mover and a chef exchange services, each has received the fair market value of the other's services as income. That does not mean that the IRS is likely to tax you on those services in ordinary cases, merely that such a transaction can be treated as income. Not every bartering arrangement constitutes income - your informal arrangement between friends would be unlikely to be treated as an exchange of services for services by the IRS, because it's not an arm's-length transaction, and they're not going to find out about it anyway.

    Where this becomes relevant is when idiots decide that they're smarter than the tax code, and do things like try to set up "barter clubs": members exchange services for their own scrip, which can then be used to acquire goods or services from the other members of the club. Here, the receipt of the barter scrip would be a clearly realized accession to wealth, and would be properly taxable.

    As for your second point, that's simpler, because it's simply an exchange of property. If the property is held for personal purposes (ie, playing the game), then a trade triggers a realization of gain or loss. For instance, if you purchased the Pikachu card for 5 cents, and it increased in value to $50 since that time, trading the card would trigger a realization of that $49.95 gain, which would be properly reported. Similarly, if you manage to convince someone to trade a Black Lotus for an Island, that windfall would be immediately taxable, and you would be obliged to report the value of the card as income, just as the lucky fan who catches a valuable home-run ball is liable for the fair market value of the ball at the time he receives it.

    Determining what is and is not income isn't hard: is it an economic benefit or clearly realized accession to wealth? If you have to ask, the answer is almost certainly yes.

    --
    I'm a lawyer, but not yours. I wouldn't represent someone who thinks taking legal advice from Slashdot is a good idea.
  68. GUNS! by DarthVain · · Score: 1

    Monetary systems haven't been tied to gold for a long time now. Governments are just printing money. Gold is worthless other than some electronic applications (it makes a good conductor and has a low melting point), people just haven't realized that. Either system totally depends on the holders belief on value. Paper money has value because people believe it does. Initially this was because it was based on gold standard. These days the government has to depend on people believing that the money they print has value. As the USA buys more and more debt and prints more and more money, I think it is understandable that some people may choose gold as the safe bet. However who knows if it will be the currency of the future.

    So due to the present econoclypse I choose to turn all my cash into guns. Now I just have to move up to Canada where there is abundant freshwater and I will be all set! I have to protect my precious bodily fluids!

  69. Horse head is my medium of choice by ancientt · · Score: 1

    The reason that waking up to a horses severed head in your bed is intimidating is because of how serious it makes the threat. The choice of medium tells you about the mind, sincerity and abilities of the threat maker.

    Perhaps by Godfather XIII they'll be doing threats by anonymous forum posts. I suspect it won't carry the same impact. It isn't the ease of the threat that counts, it is the seriousness and mind of the threat maker. Posting anonymously on a forum takes seconds and indicates the mind of the threat maker, one doesn't want to put forth much effort. The anonymity is also a factor since it is an indication that the threat maker fears the consequences of being identified, real whack jobs are proud of their views.

    A threat's a threat. If someone made a threat, it should be treated in only one consistent way no matter what medium they used to convey it.

    If someone AC posts on slashdot that I should be hung, I call it a Tuesday. If it is really unsettling and contains personal information, then at most I might report it to the authorities. On the other hand, if the threat is a note saying "Stop posting on slashdot or the next one is armed - Love Rob" which is taped to an unarmed bomb I find in the driver's seat of my car after I fill up with gas on my way to work one morning, then you can bet that I'm going to take it very, very seriously including reporting it to the authorities and having my lawyer contact slashdot.

    --
    B) Eliminate all the stupid users. This is frowned upon by society.
  70. Crap Excuse by Nom+du+Keyboard · · Score: 1

    This is a crap excuse on the part of the prosecutors to take away the right to privacy. It cannot be allowed to stand if privacy is it exist at all after this. It's not like any of them have outed the (stupid) jury member names.

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  71. IRS isn't unconstitutional by davidwr · · Score: 1

    No law or rule of government is unconstitutional until someone with the authority says so.

    Congress claims laws are constitutional by passing them.
    The President claims they are constitutional by signing them or letting them become law without his signature.
    The courts rule on a laws constitutionality the first time they are asked.

    The people declare a law unconstitutional by electing new representatives who will repeal the law, and/or overthrowing the government. Take your pick, they both work.

    The courts have ruled the IRS is legal time and time again. It's been almost a century and so far the people have neither elected a Congress that will destroy the IRS nor have they overthrown the government. Until they do, it's constitutional.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  72. Hmm by Anonymous Coward · · Score: 0

    Not all Slashdotters are Americans; otherwise they would be in support of free speech, truth in government and sound money.

  73. Anonymous Coward is dead. by Anonymous Coward · · Score: 0

    Long live Anonymous Cowardon!

  74. Hanged vs. Hung by C4st13v4n14 · · Score: 1

    Call me pedantic, but I think this one is straightforward. Prisoners sentenced to death by hanging are HANGED by the neck until dead, pictures and art are HUNG on the wall. Juries can be HUNG, there's never been an instance of an entire jury that's been hanged.

    Furthermore, it's a fascinating story so I took the time to read all the comments posted under the original story. The second story about the Review-Journal resisting the subpoena misrepresents many of the original comments.

  75. Jury nullification by Anonymous Coward · · Score: 0

    Posting AC for obvious reasons. Also to prevent burning mod points.

    Keep your mouth shut about your ideas on jury nullification, unless you're already on the jury and you feel the circumstances warrant it, in which case it should be brought up to the other jurors in private while deciding.

    Amen. Jury nullification is the first thing I thought of when I read this. Hadn't thought about keeping quiet about it, and you are absolutely right.

    Fortunately, last I knew there was a pretty good-sized jury nullification movement in Nevada. Maybe... just maybe... someone with clue will get picked for the jury....

  76. should be hung and will be hung are very different by Anonymous Coward · · Score: 0

    Kinda dumb that people would waste their time with this. It's not like the person said "Im gonna kill the jury members". He just stated what SHOULD happen in a perfect world, which we all know doesn't exist, therefore the threat is completely EMPTY!!

    These people are just disgruntled and can't take an insult like real men.