Doug, I'm starting to create my supporting schedule based on one of the example templates, but I'm confused. My schedule lays out every entry on the year-end payroll register (see below w/o amounts), with a corresponding column for any Lawful Money reduction as applicable to each (not shown below). If I may ask some questions to clear this up for me, please:

1) One Lawful Money reduction would be the total amount of all the deposits made in Lawful Money, correct? In my case this is virtually the same amount as the Net Pay (I missed literally one check - long story).

NO. All deposits are presumed to be in FRNs - the default currency. The main and primary LM reduction amount is all Gross pay received AFTER your first LM demand was made on the record.

IMM: I made a pseudo-transaction-based demand to the U.S. Treasury almost 2 years ago (before I started novating the paychecks/deposit slips with 12 USC 411). The letter denotes 'all events' (deposits/withdrawals/etc) are to be redeemed in lawful money in the same manner as your suggested 'all transactions' demand. I'm hoping this letter is commensurate with your method. However, the novation does not include 95a(2) on deposit slips/checks; just the 'standard redemption' language of USC 411. So when you say 'on the record', is the method I used above in accordance with this maxim? And if that is true, wouldn't my FIRST paycheck redeemed in Lawful Money for that given year be inclusive in the Gross Pay amount to be redeemed in Lawful Money?

2) The Fed Withholding is your Gross Pay withheld towards a tax. However, if you redeemed all or virtually all of the Net Pay then the Fed Withholding is not applicable in that sense (a tax). So can some/all of Fed Withholding be added as an offset? See 3 below relative to this...

NO. IMO, Net Pay is NOT a transaction to be counted, since Gross Pay to you already includes this amount. However, FITW is a transaction. As are the other withholdings.

IMM: So it's the Gross Pay that should be noted as paid in Lawful Money, based on the Lawful Money redemption evidence. Correct?

3) Regarding the text I bolded in your quote above, I believe you are saying that "Other Income" (in this simple example) would be (Net Pay + Fed Withholding). I believe you are saying that "Other Income" should be greater than 'Gross Pay'; or 'Adjusted Gross Income'? How can that be, with all the other non-redeemable deductions in play? Just not seeing it clearly yet.

NO. Gross pay transaction + ALL withholding transactions... IF you made your LM demand as I instructed, which makes it (LM Demand) TRANSACTION-based.

IMM: Ok, so you stated in an earlier post that FITW would be the only reimbursed withholding entry. However, it appears that the Employment Taxes are also to be taken as a Lawful Money deduction in the Schedule (as in the example - thank you for including that example for clarity!). So perhaps you are saying that IRS will determine that Employment Taxes are not to be refunded? But WE should include them as an amount to be included in the LM reduction on the 1040 via the Supporting Schedule, correct?

Sorry for my confusion. This is my first-time RILM and I'm trying to comprehend it overall and relative to filling out the 1040. Any help or clarification is most appreciated.

I am sure others are confused too. Let's ALL get this right!



Payroll Register entries...
Gross Pay Regular
Gross Pay OT
Gross Pay Bonus
Net Pay
Fed Withholding Tax
SS Withholding Tax
Medicare Tax
State Withholding Tax
Doug, my replies are above in RED. Hopefully this round of replies will get me there. I want to get this right the first time. I get the overall concept and have been novating for almost 2 years now. It's the 1040 application of it that I'm wrestling with. I'm actually late-filing for 2013 in Lawful Money and then will do so for the upcoming TY 2014. Also wanted to say that your/the '1040reliefblogspot' content is excellent! Thanks for providing that. The education here is priceless. I want to get this right, understand it and then pass the knowledge on. Thank you, DM and all Suitors.

Most grateful,