Originally Posted by
Freed Gerdes
Not all Bank of America branches are cooperative. I filed my demand with the Registrar of Deeds for the county, then sent the bank a certified copy by certified mail. The bank returned it, stating that it 'had no legal significance.' I resent it, with a letter stating that if they refused to redeem FRN's, then the income tax was unconstitutional. The bank sent this response: "We are in receipt of the purported Notice and Demand for Lawful Money. We have also received a second request Dated July 15, 2012, based on our reply. Please be advised that this document also has no legal relevance and therefore, no action has been taken or is required by the bank. We are therefore returning this document to you as well, and still consider the matter closed." signed by Anthony Petrella, Banking Center Manager II, etc.
I am preparing my 1040A form now, and will include a letter stating the particulars of the Notice filed with the county (including a certified copy), and the dates of the letters sent to the three banks that I use. The letter states that since lawful money is 'income from a non-taxable source, such transactions should not be reported on Form 1040, as it is specifically for reporting of taxable income.' So we will see if the IRS takes the same view as Bank of America...
Bank of America also states in their Account Agreement (available only online) that their policy is to ignore any special conditions written on the back of the check. But their Account Agreement does not say that the account must be held in FRN's, only in dollars.