Can you redeem in lawful money and make a deduction on those FRNs?
Not legal or tax advice, just a discussion on these laws.
Print this out and show at the bank when you fill out a signature card, endorsement of checks to “Redeem for Lawful Money 12 USC 411”. The tax is essentially, and excise-tax is for the use of private FRN credit if redeemed properly.
Don’t argue the tax laws! Stick to the lawful money issue.
12 U.S. Code § 411 – Issuance to reserve banks; nature of obligation; redemption
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.
You get left with the liability if you don’t demand…so rebut the presumption instead.
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Federal Reserve Act
Section 16. Note Issues
1. Issuance of Federal Reserve notes; nature of obligation; where redeemable
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are hereby authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.
[12 USC 411. As amended by act of Jan. 30, 1934 (48 Stat. 337).