I have gone to great length on the "Do 1099's need rebuttal" thread about contesting every nexus of taxation so as to avoid frivolous return hassles, because up to now, the protocol for using lawful money redemption to avoid taxation seemed to be: file a 1040 as you otherwise would, claim deduction for lawful money on your tax return, and hopefully get refund. As a CTC graduate, I have been down the road before of using an "easy" method of getting 100% refunds, only to have them come after me later. Eventually, they rejected all such filings as frivolous and I now have about $80,000 in frivolous penalties they are trying to collect from me.

I am confused as to what happened here. Did this suitor receive a full tax refund in response to simply filing his counterclaim and serving the Treasury with their copy?
Did he file a tax return with an IRS center as well?