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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?"

16 of 394 comments (clear)

  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 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.

    3. 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.

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

    Anonymous commenting is no longer worth the effort.

    AC OUT!

  3. 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 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.

    3. 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.

  4. 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.

  5. 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.
  6. 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.

  7. 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.

  8. 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.
  9. 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.

  10. 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