Moxie, possibly to clarify for you, I posed a similar question to doug555 on another thread, and his reply follows:

Quote Originally Posted by doug555 View Post
VERY Good question! My above statement is intended only for "income-tax" related transactions - not subsequent "purchase" transactions. That "income" (and all "withholding" transactions directly-related thereto) is now "washed" clean by the 1040, and is now lawful money and transactions in that lawful money thereafter do NOT require to be washed again BY YOU when they are spent. The system, however, if IT still presumes and uses that money as FRN's, is responsible for making those adjustments, as the Trustees in their system.

IMO.

Does that sound right to you?

However, I sense you may be inquiring about legal and equitable titles being merged into your possession simply by using LM and Full Discharge to purchase things. It all seems to check out on paper and in theory, BUT they get to presume whatever it is they want.

They don't care if they dishonor you -- they're thieves & liars and all else manner of ill. What they do -- they live it and breathe it & believe in it.