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by neekburm 2808 days ago
I've given this one a lot of thought. Ordinarily, you're supposed to pay tax on the fair market value of goods and services received in return for your labor in barter transactions.

However, East Wind is incorporated as a 501(d) organization, which is what monasteries use. For more info on 501(d) orgs: https://www.irs.gov/irm/part7/irm_07-025-023

I can't find anything specific, but I think that since they share their income and produce as a collective, they're only liable for taxes on their share of the income that the collective produces. Monks don't have to pay taxes on the value they get from the monastery vegetable garden.

Tax avoidance is a time-honored American tradition. This is one way to do so. It sounds like they've done their legal homework if they've managed to survive 30 years without IRS trouble.