View Full Version : Refund Success!... with interest.

06-13-13, 01:58 AM
So I have been silent on this site for the most part. Usually studying and observing from the back round, but I started redeeming lawful money in the beginning of 2012 to have an easy break from the FED. After building my knowledge base I decided to file EXEMPT and just not have my money held from me to begin with. However I wasn't able to get this complete until after I already had one pay check issued to me so FED taxes were taken out for one week of the year meaning I would file in 2013. I filed using the 1040 help on this site. Well this is a success story and I recently received the treasury check that was owed to me in the mail!!! (woo hoo). However something interesting that I've never personally seen or heard of is the check is for more money than I had taken out. The check should've been $61.66, but the actual amount was $61.88. On the bottom portion of the check it says verbatim ".22 INTEREST". David have you or anyone else seen an instance like this before? Second question because I haven't found much info on it (might not be looking in the right place), but is it possible to have all of the State Income Tax refunded also using the Lawful Money Reduction? Thank You!

06-13-13, 02:16 AM
Yes I have gotten interest on my refund checks. By law, they owe you interest starting 45 days after your filing. Exempt is a smart way to go, because otherwise you are floating them an interest free loan for several months to a year.

Every state that has income tax that I know of begins with the federal adjusted gross income as a starting point. If that number is zero because of LMR, then you should be entitled to a refund of state income tax as well.

06-13-13, 02:43 AM
How awesome! Thank You

David Merrill
06-13-13, 08:25 AM
I never advise Exempt because that almost always involves your employer - even indirectly. A phone call from the IRS to the employer can lead to unemployment. I do not trust that verbiage in a phone call will be compliant with remedy nor in accordance with law. There is no culpability.

Thank you MOtL;

Without your input I would have assumed that the Interest was a trap of some kind. I have not been looking so closely at Returns, Refunds and Interest but what you say makes sense. The IRS does indeed owe interest on the funds they keep.

06-14-13, 12:24 AM
Yes, RLM is effective for state taxes.

"Federal Reserve notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues."

Lawful money is lawful money is lawful money.

David Merrill
06-14-13, 04:15 AM
It seems revenue powers have quit the nasty tactic of using the state courts for failure to file prosecutions. Getting an IRS agent into state court to testify that you have no federal liability, therefore no state liability would be a daunting task indeed.