Earlier this year I received this FAILURE TO FILE NOTICE from the Massachusetts Dept of Revenue. A beautiful piece of social engineering in the form of an "official notice." They instructed me to either file a return, pay the proposed assessment of six grand, or tell them why a return is not required, or else. I replied with a short letter saying, essentially... No, I don't think so. I don't agree to your proposed assessment. The reported amount were Redeemed Lawful Money under title 12, United States code section 411 and attached copies of the deposited LM checks.

Return Receipt indicates they received my letter August 13th. 60 days have now passed and I'm here to tell you their or else never happened. Never received a bill. The Mass DOR has been silent.

This evidences that you are correct in your interpretation of the Fed Act - Federal Reserve income is different than Lawful Money income, and that it can be nontaxable; even at the state level.

Thank you. And my family thanks you for the extra money. As the following study indicates, my children are benefiting the most from my non-endorsement of "debt-as-money."

http://www.washingtonpost.com/news/w...lity-for-life/