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 forced everyone to use direct deposit. The same with my stock accounts; when I sell a stock they just credit my account; no check appears that I could non-endorse. I suspect this is to keep suitors from non-endorsing the checks (but maybe I am giving the IMF lawyers too much credit here). Thus the only way to make the demand is by changing the signature card, and the banks are being trained to refuse this request. Now they can't refuse the demand, as it exists in the federal law that created the Federal Reserve system. But most people will not know this, and will be intimidated by the banks' refusal. Because the account agreement is a private contract, can BofA say that 12USC411 attempts to interfere with a private contract, and thus is void? Alternately, their only option would be to close the account, which they could do, but they haven't. They are apparently claiming that the account was not changed to an irregular deposit account. I will go in tomorrow and try to open an irregular deposit account.

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 I keep title to the money and only use the bank for secure storage and bookkeeping functions. The Supreme Court ruled in 1894 that an income tax was repugnant to the Constitution, so when using Constitutional money (ie, any money issued by the Treasury), it can't be taxed. In fact, all these myriad taxes we now face are based on this private money scheme, as they are all* un-Constitutional otherwise. As you noted, Social Security is a benefit, and Congress can levy a tax to pay for a benefit, so SS* is a valid tax, but still an excise tax. As long as you are listed as a US Citizen (thus eligible for SS), you cannot get out of paying the SS tax, and it is extracted before you ever see it. Redeeming lawful money will not get you a refund of the SS tax; only opting out of SS will stop that tax. For young people, I would heartily recommend opting out. As Johnny Cash shows us, you can quit SS any time you want, and you will still get benefits when you retire, although less because it is based on how much you paid in...
But, if income tax is a valid tax, what is the benefit? Apparently, we all benefit from the Fed printing more worthless paper money. I wonder why the Articles expressly forbid this? To get around the Constitutional prohibition, the Fed banksters put the tax on private money. Ergo, don't use private money, and the whole problem goes away.

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...