So, another update on this issue..

I received a check from the State (Iowa Department of Revenue) for about 10% of the amount on Tuesday. On Wednesday, I got an explanation letter from them. One form shows how they recalculated my taxes and completely disregarded my "Demand for Lawful Money Reduction". On another form, they put this:

Reason for Notice:
The gross income has been adjusted.
The taxpayers trust fund tax credit has been adjusted or denied.
Your refund claim has been partially denied.

I feel like I should send something back to them arguing that they are breaking the law, though as they as disregarded it already, I feel that I should take this elsewhere. A complaint to the State Treasurer, State Senator, Representative? Any suggestions would be most welcomed!