State Return - Need Assistance - Lawful Money

[David Merrill]

Perhaps the State denied Breneth's lawful money deduction (instead deeming it a "trust fund tax credit") because Breneth demanded a NET deduction. As Doug555 succinctly explained, the so-called taxable event on "employee/wages" is paid at the GROSS amount level. If the State was wise to lawful money and the proper application of this (on GROSS pay/all transactions) then they probably (and correctly) based their denial on Breneth making an 'empty' demand (on NET pay only). Or perhaps they were ignorant and assumed this is what Breneth was attempting (trust fund tax credit).

I made the same 'empty' demand with a County-recorded affidavit of which I will correct shortly by re-recording a proper Affidavit demand consistent with my first 2015 demand of "lawful money demanded for all transactions per 12 USC 411, 95a(2)" that I made on the FRONT of the paycheck and deposit slip.

I'm surprised Breneth did not follow-up here but perhaps he waived the State refund denial on his 'empty' demand.

Perhaps.

So, another update on this issue..

I received a check from the State (Iowa Department of Revenue) for about 10% of the amount on Tuesday. On Wednesday, I got an explanation letter from them. One form shows how they recalculated my taxes and completely disregarded my "Demand for Lawful Money Reduction". On another form, they put this:

Reason for Notice:
The gross income has been adjusted.
The taxpayers trust fund tax credit has been adjusted or denied.
Your refund claim has been partially denied.

I feel like I should send something back to them arguing that they are breaking the law, though as they as disregarded it already, I feel that I should take this elsewhere. A complaint to the State Treasurer, State Senator, Representative? Any suggestions would be most welcomed!

The Refusal for Cause is likely the best way, if you cannot accept the offer as a settlement.

Keeping a record is typically the way a suitor handles it. Possibly if the State knew you would be publishing their testimony in the USDC on PACER they would have processed the Return correctly?