I heard about a way to legally escape paying taxes on job bonuses.
Say at my job, year end, Christmas time my boss gives every employee a 15,000 (USD) bonus. now, on the IRS 1040EZ tax form this 15,000 dollar bonus would be added to my salary for that year and i would need to pay alot (roughly 10%) of taxes for that bonus. This thing I heard about- exchanging the bonus for something else- is to say, ask if I could get the 15,000 in junk 1 oz gold coins. Right now gold’s what, $995 an ounce? I believe the face value of 1 oz US gold coins are $20 each. so 15k / 995 = 15- 1oz gold coins.
If I was to report the $15k bonus as face value of the coins – 15gold 20$coins = $300, would i get away with this? and is it legal?
* I’m not saying I already did this to escape any taxes or have a similar large bonus to do this with to escape taxes, but I’m just wondering whether is this legal to do. I heard about it on several survivalist forums.
15k bonus whether it is cash, stock or gold you pay income tax and the rate is higher then 10%
Other info…..
http://www.the-armory.com/shopsite_sc/store/html/223_ammunition.html
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A U.S. gold coin that says “Twenty Dollars” on the front still has an actual cash value of substantially more than twenty dollars, and that’s how the IRS would see it. You wouldn’t win. There are people waiting for their cases to go to trial for tax fraud right now for attempting similar schemes.
Other info…..
http://www.the-armory.com/shopsite_sc/store/html/223_ammunition.html
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A U.S. gold coin that says “Twenty Dollars” on the front still has an actual cash value of substantially more than twenty dollars, and that’s how the IRS would see it. You wouldn’t win. There are people waiting for their cases to go to trial for tax fraud right now for attempting similar schemes.
Other info…..
http://www.the-armory.com/shopsite_sc/store/html/223_ammunition.html
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you still pay the same amount of tax whether you substitute 15k cash bonus with its equivalents whether it be gold, or turkey, or xmas candy.
as the taxable amount and taxes are the same, it is all legal
Other info…..
http://www.the-armory.com/shopsite_sc/store/html/223_ammunition.html
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Hello there,
None of what you have suggested would be legal. Whoever suggested these idea did not know what he/she was talking about.
1. Taxation of income. All income is taxed unless it is something that is specifically excluded by statute from taxation, such as a tax exempt bond interest (even then it may be subject to tax at the state or county level).
2. Income is taxable upon receipt. The moment you receive income or have the right to receive it, the income becomes taxable to you. If you could receive it and chose to wait to actually receive it, the income becomes taxable when you could have received it. This also eliminates the idea of exchanging your bonus. If you can receive it in cash and chose to exchange the cash for goods, you are taxable on the cash and not the goods you received in the exchange.
3. Amount of income. The amount of income to be included in determining your taxable income is the fair market value if other than money is received. Gold and silver coins, even though they were at one time legal tender, now have a market value in excess of the face value. You must include the market value as of the date you received the gold or silver. Numerous people have tried this latter scheme and it does not work. Those that still advocate it are either ignorant of the law or chose to ignore the law for personal reasons.
I suggest you get your tax advice from a more reputable source.
Good luck to you,
Other info…..
http://www.the-armory.com/shopsite_sc/store/html/223_ammunition.html
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And, your scheme has a big hole in because the employer is going to want to deduct the money he paid to his employees. He’s not going to want to pay $15K and only get a $300 deduction.
What is this, cheat the government night?
Other info…..
http://www.the-armory.com/shopsite_sc/store/html/223_ammunition.html
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Make sure to report bonus as income. If it is not reported on Form W2, then your employer is treating this as your self employed income.
Your employer must be reporting this to the IRS. Employer is required to report bonus on W2 or issue 1099-misc. Even the employer is not issuing 1099-misc, you MUST report this income. Else one day IRS will certainly catch this. Then you must pay tax due with interest and penalty.
http://taxipay.blogspot.com
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Even barter is considered income by the IRS. So, what you are proposing is taxable and failure to report would be a federal crime.
http://taxipay.blogspot.com
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