I know of a case in this area of payment not in cash. A local farmer did not have available cash at the time property taxes were due, so he paid with half of a recently butchered cow (all dressed & packaged into steaks, roasts, hamburger, etc.).
What actually happened was that the workers in the tax office split the meat among themselves, and contributed their money to pay the guy’s property taxes. They were happy to obtain farm-fresh meat at a bargain price, and the farmer was happy to have his taxes paid without cutting into his cash.
I can’t imagine that that sort of thing happens often, or that IRS HQ would approve it nationwide if asked. Too much potential for cooking (ahem) the books.
It had happened some years before, but was apparently rare enough that everybody in the office remembered it.
And I don’t think State Dept of Revenue HQ* was ever aware of it. The workers all took the meat, and paid cash – the records would just show his property taxes paid in cash.
It was State Property Taxes – no connection to IRS Income taxes.
Fair enough, but – like Shagnasty was saying – even in that case, the guy would still have ‘things, but no cash’. So, as per the OP, figure the IRS asks him for money, and the guy (a) patiently explains that he doesn’t have any dollars, but then (b) offers to pay in chickens.
The IRS must accept cash as it is legal tender. Checks are normally accepted because they can be easily turned into cash. Legally, all you need for a check is a piece of paper with the following:
[ul]
[li]The date[/li][li]Pay to the Order of and who the check is made out to[/li][li]The amount[/li][li]The bank where the money should be withdrawn[/li][li]Your signature.[/li][/ul]
So, you could “write” a check on a cocktail napkin, a roll of toilet paper, or even a chicken.
However, it is up to the place that is taking your check whether or not they’ll accept it. They can refuse your check, and insist on another form of payment (or an actual check).
According to urban legend, someone once paid their tax bill with a toilet seat cheque. I guess this might be true. I can imagine someone owing a bunch of taxes, arguing for months with the authorities, and finally comes in with the toilet seat check.
Someone at the taxing authority who’s been on this case day in and out for the past two months says “Fine. I give up. Leave the toilet seat here, and I’ll cash it. I hope the bank charges you a fortune for processing it and returning it in your next month’s statement!”
Exactly - debts must be paid in legal tender (and legal tender presentd for debts cannot be refused).
This sort of law goes back to the problems after the Revolution, when governments printed money like crazy - something they don’t do nowadays . When some people began refusing colonial script and demanding payment in more substantial cash, like British money, the laws were passed to require anyone to take this money in payment of debts.
The government does not care if you have no money; it’s up to you to arrange to sell your chickens for cash and give them the cash. If they have to seize your chickens and sell them, they will charge you extra for each step in the process, plus an educational fee or “fine”, so you learn not to do it next time.
. When some people began refusing colonial script and demanding payment in more substantial cash, like British money, the laws were passed to require anyone to take this money in payment of debts.