Comment: As you might guess, the IRS disagrees

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As you might guess, the IRS disagrees

The IRS disagrees with this idea of using silver or gold coins and counting the face value as the transaction amount. Something worth checking into before filing a tax return on that basis. It happens often enough that they've streamlined the process of dealing it. Making that argument on your return means an automatic judgment against you -- you don't even get to argue your case -- plus a penalty of $5,000 ($10,000 if filing jointly). See http://www.irs.gov/irb/2008-04_IRB/ar12.html