In San Francisco, a former publisher was sentenced to five months in prison in a tax fraud case. The publisher had failed to report barter related transactions, even though those transactions were being reported to the IRS…
Green failed to report at least $400,000 in income, including income from bartering - an exchange of goods or services that does not involve money.
“This conduct is less serious, but still criminal because it does add to the falsity of the returns,” Assistant U.S. Attorney Thomas Newman wrote in a sentencing memorandum. “The barter exchanges expressly told subscribers how much income they had in dollars, and to report the income. The defendant never did.”
This is a case of a good, reputable barter exchange doing its job of reporting transactions, and an unscrupulous member trying to jack the system. Good luck to anyone who tries this same method at that level again…
