American Tax Officer

In the courtroom, David looked at the still-dazed Ted and asked, "Mr. Ted, I would like to ask you, this 20 US Dollar tip, have you ever paid income tax on it to our tax authority?"

Ted, who had come to his senses, asked in dissatisfaction, "Is there a mistake here? This 20 US Dollars was a tip given to me by a customer. Are tips also considered tax evasion?"

"Mr. Ted, you are with the Human Rights Organization and should be more knowledgeable about the law than the average person. According to federal tax law, tips are included in personal income, and moreover, whether it's 20 US Dollars or even if it's 1 US Dollar of income, you have to pay income tax to our tax authority!"

"And you neither reported it nor paid, according to our tax law's profit regulations, it's explicitly stated that you have committed the crime of tax evasion!" explained David calmly.

"Then Director David, by that logic, wouldn't there be tens of millions of people in America who have committed the crime of tax evasion?"

Ted was visibly upset. Dammit, probably hundreds of millions of people in America have received tips. According to the tax authority's laws, wouldn't they all be guilty of tax evasion?

"You could say that, but today the one standing here is you!"

David's words were essentially telling him that he didn't care about others, but since your group of crazed dogs from the Human Rights Organization wanted to oppose me, I'm targeting you now!

"You..."

Ted was fuming with anger, but before he could say something, Nicola, who was on the stage, stepped in to ask first, "Alright Ted, you only need to answer now, did you report this 20 US Dollar tip or did you pay the tax on it?"

Seeing an opportunity to deal with the opposition, Nicola spoke up a bit louder.

At this moment, Ted felt extremely aggrieved. Just because he hadn't reported this 20 US Dollar tip and had underpaid by 2 US Dollars of tax, it had become a reason to find him guilty, which seemed preposterous.

By the way, something he just couldn't figure out was how David had gotten hold of this video so quickly?

Honestly, if it weren't for the appearance of this video, he would have forgotten that he had ever received this 20 US Dollar tip.

The two members of the Human Rights Organization next to Ted also started frantically reminiscing, trying to recall if they had ever received tips in their own careers.

But they soon relaxed.

One of them was a music teacher, a profession considered high-level in America, with no opportunities to receive tips, and this teacher was also very certain they had indeed never received any tips.

The other was a supermarket employee.

Working with the supermarket's goods all day, they likewise had no chance of receiving tips.

And they were also certain that they hadn't received any tips in the past three years.

Even if they had received tips three years ago,

they didn't believe the tax authority could find this video or other evidence in such a short amount of time!

"Your Honor, I object to this. Even if this 20 US Dollars required the payment of taxes, my client did not have the subjective intention to evade taxes, and therefore, he should not be charged with tax evasion. I believe the post-payment should suffice!"

Seeing Ted accused of tax evasion over this 20 US Dollars, Jeff, the lawyer sent by the Human Rights Organization, couldn't sit still and immediately stood up to retort.

And David turned to him, challenging, "Defense lawyer, I disagree with your viewpoint. First of all, the primary requirement to join the Human Rights Organization is to have a clear understanding of federal law. Therefore, I believe that, on a subjective level, Ted knew that this 20 US Dollars needed to have taxes paid on it, perhaps he was just hoping for a stroke of luck.

Of course, if Ted admits that he's not clear on federal law, consider my words unsaid and we'll let this 20 US Dollars slide."

On the surface he was saying that as long as Ted admitted he wasn't clear on the law, they would not pursue the matter, but in reality, his words contained a hidden catch.

After all, Ted was a member of the Human Rights Organization. If he admitted his lack of clarity on the law, that would suggest that the people in the Human Rights Organization were all legally ignorant. How could someone ignorant of the law become an advocate for human rights?

Or fight for citizens' rights?

And if he admitted his clear understanding of the law, then it would indirectly affirm his awareness that the 20 US Dollars needed to be taxed.

Either answer would lead to a checkmate!

Ted was no fool; he could hear the lethal intent behind David's words, so he dared not admit his lack of clarity about the law. But if he didn't admit it, then he would be implicitly acknowledging that he knew the 20 US Dollars needed to be taxed and chose not to pay, and the accusation of tax evasion would be confirmed.

At that moment, sweat began to break out on his forehead.

Seeing the situation turn dire, Jeff immediately came forward and whispered, "Ted, did your annual income exceed 12,250 US Dollars?"

According to federal tax law, as long as the annual income doesn't exceed 12,550 US Dollars, no personal income tax needs to be paid.

And David's attempt to accuse Ted of tax evasion wouldn't be valid.

Ted said bitterly, "Do you think I'm a vagrant? 12,550 is only 3.4 months' wages..."

Jeff had guessed as much; he was just asking out of a hopeful eagerness, but his confirmation still left him with a sense of helplessness.

If the tax authority insisted on framing Ted's 20 US Dollars as tax evasion, it might seem absurd, but legally, it stood.