• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Pridgeon & Zoss, PLLC

Just another WordPress site

  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Home / IRS / Tax marks the spot! IRS officials lay claims on found treasure
  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Call
Contact
Blog

Tax marks the spot! IRS officials lay claims on found treasure

Everybody has probably hears stories about people who make a seemingly low-valued purchase at a garage sale and then discover a large cash reserve concealed within the item. While these examples of finding treasure might amount to little more than urban legends, one thing is certain: Found treasures can be considered taxable windfalls by the Internal Revenue Service.

This concept recently came to light with the recovery of gold worth $1.3 million in a shipwreck off the coast of South Carolina. The ship sank well over a century ago, but now the IRS has an interest in taxing the value of the gold found and recovered by a private company, Odyssey Marine Exploration.

Federal law considers found cash or valuables to be taxable income. In fact, a U.S. Supreme Court ruling confirms this. Regardless of whether or not a person put work into finding or recovering a treasure, it is still subject to taxation. Forbes points out that the phrase “treasure trove” even appears in the U.S. tax code.

The lesson in all of this is for individuals to not be caught off guard by what the IRS considers to be taxable income. If tax officials catch wind that a person fails to claim an unexpected cash discovery as income, then a tax dispute may be put into motion.

At the same time, however, it’s understandable how a person could be taken aback by a claim for unpaid taxes. The federal tax code is immensely complex and some people make honest mistakes. Still, it helps to prepare to effectively resolve a tax dispute with the IRS.

Source: Forbes, “Gold Bars Pulled From 1850s Shipwreck? Taxable Says IRS,” Robert W. Wood, May 6, 2014

On Behalf of Pridgeon & Zoss, PLLC May 08 2014 IRS

Primary Sidebar

Do Not Delay Responding to a Tax Notice

Name(Required)

Practice Areas

Tax Disputes

  • Tax Litigation
  • Audits
  • Tax Appeals
    • Appealing a Levy Action

Business & Payroll Taxes

  • Trust Fund Assessments
  • Complying with Sales and Use Tax Laws

Self-Employed

  • No Taxes Withheld

Outstanding Balances

  • IRS Collections and Currently Not Collectible Status
  • Settlement Options
    • Offers in Compromise
    • Installment Agreements

Latest Blogs

5 Things to Do if You Get Audited in Minnesota

March 27, 2023

What is a Trust Fund Recovery Penalty?

January 31, 2023

A Guide to the Minnesota Tax Appeal Process

January 27, 2023

The Secret to Successful Self-Employment

October 19, 2022

Things You Should Expect Being Self-Employed in Minnesota

October 13, 2022

Footer

Edina Tax Law Office

4951 W 77th Street, Box 11
Edina, MN 55435

Telephone: 952-835-8320

Fax: 612-682-4711

Roseville Tax Law Office:

1915 Hwy 36 West, Box 3
Roseville, MN 55113

Telephone: 612-455-8948

Pridgeon & Zoss, PLLC provides legal counsel for clients in Minnesota and Western Wisconsin

© 2025 Pridgeon & Zoss, PLLC. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy