Don't be so quick to jump into that wet cement.
What "other area"?
And why might this other area not also include your demands for "lawful money and full discharge on all transactions" ?
Don't be so quick to jump into that wet cement.
What "other area"?
And why might this other area not also include your demands for "lawful money and full discharge on all transactions" ?
I did not start redeeming until March so I guess that amount came from un-redeemed income
Frivoulous 1040 return - should have read JohnnyCash instructions
Thank you JohnnyCash for your posts on how to fill out line 21. I received a "frivoulous" return notice from the IRS on my second year of filing because I overstated the demand for lawful money which put my AGI in a negative position. I am going to file amended 1040 with lesser amount on line 21. Will keep forum posted on how this goes. Thank all of you.
Well, my point here is don't guess
Be sure of what you've done & stand by it.....or.....be sure you've made a mistake on that return.
Has IRS justified the $100 discrepancy descriptively....or is that number just thrown out there to create a doubt in your mind as to your Lawful Money return.....i.e. an offer to recontract?
Anyone else wanna pipe in ?
You are quite right about guessing. I was truly overwhelmed with my refund, however. It was VERY large and 100 was nothing and I was just thankful that Lawful Money redemption worked without question, this was my first return. I have taken the time to actually read the IRS letter. The error was my mistake. On line 65 I added 100 to the amount of tax I paid in for some 1099 work. They corrected and therein lay the issue. I am still waiting for a very large refund from the state.
Well, good on you David Neil !!
Durn tootin' that LM return works !!!!!!
Thank you David Merrill et al !!
Looks like the Oregon Revenue Dept. is going to gum up the works. Even though the Oregon Income Tax is predicated on the your taxable income from the Federal Return, they are questioning Lawful Money deduction I claimed on line 21 of the 1040. Just got off the phone with them. I explained to them what it was but of course they need to investigate. I put this return in in early Feb. and they have never sent me anything asking for more information. I can't believe this is the first LM return they have received and they need to investigate. Anyone ever file in Oregon?
Oregon has "disallowed" my lawful money reduction. They are asking for quotes for the IRS code which shows that lawful money is deductible. Are there any specifics that someone can guide me to?
"From its earliest days, the Supreme Court has indicated that direct taxes include capitations and real property taxes at a minimum.24Originally Posted by David Neil
The Court has also suggested that other types of taxes might be considered direct,25 although the Court did not find any such examples 26 until the
Pollock case in 1895."
Footnote 26: "26 See Hylton, 3 U.S. at 175 (upholding unapportioned tax on carriages); Pacific Insurance Co. v. Soule, 74 U.S. 433
(1869) (upholding tax on the business of insurance); Veazie Bank v. Fenno, 75 U.S. 533 (1869) (upholding tax on bank
notes); Scholey v. Rew, 90 U.S. 331 (1875) (upholding inheritance tax); Springer v. United States, 102 U.S. 586 (1881)
(upholding income tax)."
From: https://www.fas.org/sgp/crs/misc/R40725.pdf
Tell them your time given to your employer was paid in money issued directly from the U.S. Treasury and not in bank credit issued by a bank! Veazie Bank v. Fenno!
When your time is paid in money issued under article 1 section 8 clause 2 (USN's) or 5 (coin) it is subject to the direct tax clauses.
When your time is discharged with bank credit issued by any bank operating under the federal reserve act it is subject to the excise tax or duty on contracts, on income upheld in Springer and explained in Veazie Bank.
Last edited by Brian; 05-30-15 at 12:04 AM.
This is interesting - the approach. Can you sanitize the letter and scan it for us?
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