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NWAonline
FAYETTEVILLE — Local currency like Ozark Hours should not be confused with an alternative banking scheme that surfaced in Carroll County two years ago.
Wayne Hicks, of Berryville, pleaded guilty in federal court in October 2008 to conspiracy to defraud the federal government of income taxes.
Hicks operated a scheme called ICIS or MYICIS which allowed its members to avoid paying taxes.
Many members were involved in the so-called Patriot Movement and were generally anti-government and did not pay federal taxes. Some schemed to overthrow the federal government, according to prosecutors.
But, Hicks was also into the alternative currency movement, specifically Liberty Dollars, a currency based on silver.
Hicks became nationally known for his work establishing the Liberty Dollar in Berryville and was a "Regional Currency Officer" for the national organization at one time.
Backers said in 2005 that Berryville was one of the three largest communities using Liberty Dollars. The others were Austin, Texas, and Asheville, N.C.
But, after Hicks moved on to Branson and later federal prison, the Liberty Dollar craze in Berryville petered out.
In September 2006, the U.S. Mint issued a statement saying the Justice Department had determined that circulating Liberty Dollars as money is a federal crime. Bernard von Nothaus, who is credited with coming up with the Liberty Dollar concept, sued. He claimed using Liberty Dollars as a voluntary bartering currency is not a federal crime.
Gold, silver and platinum and coins were confiscated during raids on Liberty Dollar offices in November 2007.
About four weeks ago, organizers for the National Organization for the Repeal of the Federal Reserve were indicted in federal court in North Carolina for their connection with distributing the Liberty Dollar coins, the U.S. Justice Department reported. Among those indicted was von Nothaus.
The indictment alleges the organization was selling the Liberty Dollar coin at a greater price than was paid for it.
Today's community currency system organizers stress taxes must be paid in U.S. dollars.
A local currency doesn't exist in Arkansas, said John Theis, assistant revenue commissioner with the Arkansas Department of Finance and Administration. And the state does not have any definitive set of policies for a local currency, he added. But the bottom line is, pay your taxes.
"If the local currency is treated as a thing of value, sales tax would be due on the total value of the item or service sold, regardless of the type of consideration used to complete the purchase," Theis said. Write Comment (0 comments) |