On: IRS reminds taxpayers to report virtual currency t...

[_3rk4]

Isn't it likely the person who lost the $20 bill already paid tax on it?

[jmalicki → _3rk4]

There's no rule that says only one person pays income tax. For example:

1) You make $20 from employment, and pay $5 income tax. 2) I sell you a sandwich for $15.

I still owe income tax for the money I made selling you a sandwich, even though you already paid tax.

[hippich → _3rk4]

as well as employer, who paid tax on that $20 to the person who lost it

as well as person who found it, who paid tax on that $20, who paid employer for service, who paid person who lost it

this could be non stop recursion :)