Originally Posted by
Freed Gerdes
Thanks for your thoughtful insights, David. I have a few residual questions concerning the process, and the presumed (or feared) response of the IRS.
1. Redeeming lawful money, whether by stamp on a check, or by service of the recorded demand on the bank, creates the same result: demand has been made to refuse to deal in private credit/money substitutes, and this switch to public money puts the resulting transaction out of the reach of the IRS. I only use this method because I never see any checks; SSA has just...
2. I get 1099's which show purported money movements, so I need to file a return. I am debating whether to not show the income received after July at all, and defer to the statement that after July it was all redeemed, or to show it all and then back it out on Line 21 and provide an addendum which lists all transactions after July.
3. Making the demand for lawful money converts the bank account from a Federal Reserve Account (insured by FDIC for $250k) to an irregular deposit account, which changes the relationship from one of debtor (bank) and unsecured creditor (me) to one of bailor (me) and bailee (bank). In the one case I make a loan to the bank (I pay an excise tax on the privilege of being a state bank), and in the other...
4. You suggested that I forgive the IRS for 40 years of fraud. Since money damages for fraud would be an equity claim, there is no statute of limitations: I could ask for a refund of all income taxes I ever paid. Is your concern that the IRS will recognize this in the Notice of Demand (now, ab initio, and nunc pro tunc), realize that they may have a $400,000 claim on their hands, and feel that they have to fight back? Your suggestion that I send a Form 834 would surely make them aware of this issue, in case they somehow missed it before, and since one has to file a separate Form 834 for every tax year, one might not put them at ease. Presuming that I state forgiveness of the entire amount and sign it, they would have some protection against later filings, so maybe that would set them at ease.
5. I have tried to learn a little about the Clerk of the Superior District Court here in Mecklenburg County, but there is damned little info available. The insider club of practicing attorneys no doubt know all these little tricks, but I haven't a clue how to proceed. Can I just go to the Clerk's office and ask to open a Miscellaneous Case file? What would they file it under, with no pending case or existing case number? And should I put my other records in it? Presumably this is to get evidence into the record in advance, and to let the IRS know that it is in the record (of the court that they would have to go through to get to me). Can you clarify this a little?
Finally, please note that I do not have any properly redeemed paychecks, as I am retired; all important money transfers occur by direct deposit; that is why I am using the blanket bank account route.
Thanks again for all your thoughtful comments. I appreciate your concern about not using the remedy until I need it even better now. But I have had the stamp for a year now and haven't used it yet...