Quote Originally Posted by David Neil View Post
So far there is no letter. I was contacted by phone. It all began last week after having waited these many months since filing that I had not received my refund. Checking the web site they informed me that the form was being processed manually. I called and the attendant said they would make an inquiry. If I had not received any further requests for information in a weeks time, to call back. I waited a week, called back and the new attendant said there were no responses to their inquiry in the system and that she would have a supervisor contact the people handling the the manual audit. That very day, yesterday, I got a call from "Steve" at the end of the day and he said I was handling my file. He asked about my entry on line 21 for the 1040 and I explained 12 USC 411. I told him that since the income tax was a use tax and I did not use federal reserve notes there is not tax due. I also told him that the IRS had already accepted my return. As I indicated earlier they questioned a $100 discrepancy in quarterly withholding I had sent in and amounts I claimed on 1040. They said nothing about my line 21 reduction. My refund was therefore reduced by the $100. I volunteered to send a copy of this letter but he declined. I then stated that the Only requirement of the Oregon Form was to transfer the taxable income from line 37 of 1040 the adjusted gross income to their form and calculate taxes from there. I asked him what jurisdiction he had over questioning what was done on a 1040. He said that state law gave them the authority to question my income at any stage of the game.

He called today to tell me that he had read 12 usc 411 and did not see how that reduced my income. There was further back and forth along the same lines as yesterday when he stated that he would be calculating Oregon taxes based on his criteria and he would be sending me a letter. He also told me that I had to find something IRC to justify this entry on 21.

He assured me that I had the right to appeal, like I want to enter that den of vipers to get my money back.

Once I receive my letter I will post.

BTW just joined Lawful Money Trust and I just learned of McCulloch v Maryland. I will send this decision to him and point out out the logic of doug555 that LM is outside of the IRC and therefore I cannot prove a negative.

Looking forward to the section on Basic Trusts
OK...

Look again at David's statement in "Public Money vs Private Credit":

On page 2 of 4:
A Taxpayer is allowed to claim a $1000 personal deduction when filing his return. The average taxpayer in the course of a year uses United States coins in vending machines, parking meters, small change, etc, and this public money must be deducted when computing the charge for using private credit.
IMO, this may establish the principle behind reducing 1040 tax by the amount of public money used.


David, can you specify where in the IRC you found this $1000 personal deduction?