Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 14

BARTER AND THE IRS Bartering occurs when goods or services are exchanged without the exchange of money. For some, barter's popularity is that it enables them to avoid paying taxes to the government. How might such avoidance occur Does the Internet Revenue Service (IRS), www.irs.ustreas.gov/ , treat barter as taxable or nontaxable income (Type "barter" in the site's search tool.) How is the value of a barter transaction determined What are some IRS barter examples What does the IRS require of the members of so-called barter exchanges