In this and other examples of supporting schedule one can see that suitor attempts to recover SS, MED and other withholdings. Question which arises is:
SS and alike payments are withheld by employer and suitor could never explicitly redeem those in LM. Therefore, IRS can assume that those withholding being made in FRN.
For all suitors who just have modified bank signature (or explicitly redeeming pay checks) this feels like a dangerous thing to do for reasons stated above.
For the suitors with Default Judgment in U.S. District Court - I don’t see any contradictions, so all power to you
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I hope that my conclusions are wrong, since it looks like many of “Non Default Judgment Suitors” may follow this or similar template.
To me it gets down to very simple perspective. Money that one doesn't handle and explicitly redeems in LM are theirs and subject to their fees/taxes etc.