While I have serious doubts about the "IRS recogniz[ing] Redeeming Lawful Money", I know what the IRS does NOT recognize:
The IRS does not recognize as "taxpayers" some people I've known who have never filed any paperwork with the IRS in their entire lives, who work only for lawful money, and who have bank accounts, credit cards, DLs, BCs, insurance policies, and SSNs, and one even has a mortgage.