Federal Reserve Notes Not Taxable Income

Federal Reserve Notes Not Taxable
Income
Title 26 of the US Code is the Internal Revenue Code. Sections 1271-1275 deal with assessing a
tax on debt instruments. Section 1275 defines debt instrument:
26USC §1275(a)(1)(A)
Except as provided in subparagraph (B), the term "debt instrument" means

a bond, debenture, note, or certificate of other evidence of indebtedness.
The Federal Reserve Notes we all trade as money are, by this definition "debt instruments."
Now that we know the status of our money, let's look at section 1274:
26USC §1274(3)(D)
(3) Exceptions
This section shall not apply to -
(D) Debt instruments which are publicly traded or issued for publicly
traded property.
Our money is based on debt instruments that are publicly traded and issued for publicly traded
property, so it appears to be excluded from taxation according to these rules
http://www.mainemediaresources.com/cr_april04.htm#jurisdiction
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Failure to File - Not a Crime

"We'd better not let the word get out...We'll keep it among ourselves." - Chief
Justice William Rhenquist
In the oral arguments at the US Supreme Court for United States vs. Craft (No. 00-1831) the
following dialogue between Chief Justice Rhenquist and US Attorney Kent Jones took place
regarding the criminality of failure to file income tax:
RHENQUIST: What about criminal procedures? Are there any criminal procedures for
--
MR. JONES: I --
RHENQUIST: -- failure, continued failure to file--
MR JONES: Of course, if you file a return, then you're not exposing yourself to any
criminal obligations, and if you don't file a return, it would be -- I'm not familiar with a
statute that makes that a crime by itself... I'm not an expert on criminal tax matters, but
it's my impression that that would not by itself be a crime.
1
RHENQUIST: We'd better not let the word get out. I thought it was a crime, but I'll
check.
(Laughter)
MR. JONES: All right, well, I stand --
RHENQUIST: We'll keep it among ourselves.
The complete text of this oral argument can be found at:

www.supremecourtus.gov/oral_arguments/argument_transcripts/00-1831.pdf
http://www.mainemediaresources.com/cr_april04.htm#jurisdiction
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DEPOSITED FOR CREDIT ON ACCOUNT OR EXCHANGED

FOR NON-NEGOTIABLE NON-REDEEMABLE FEDERAL
RESERVE NOTES OF FACE VALUE
Taxes – Not Lawful: The Government Cannot and Does

Not Tax Credit, Debt, or Barter:
Federal Reserve notes are licensed for use as money, but

effectively this really only means they are a medium of exchange
for discharge of public and private debt. The Government
maintains jurisdiction over the use and transfer of these notes,
due to licensing or chartering of banks, just like trafficking in
alcohol, guns, drugs, tobacco, but that does not necessarily make
them subject to taxes – remember, they are licensed “as” money,
they are NOT “money” per se.
Using bank notes (money) is licensed money laundering,

plain and simple. When you receive a check, it says “dollars” on
the front. If you endorse it openly or directly, you are testifying
that you have agreed that you received “dollars of valuable
substance”, even though there are none in existence.
There are many types of commercial paper that properly

prepared can discharge debt other than bank notes but few know
how to use them. When you stamp or write: DEPOSITED FOR
CREDIT ON ACCOUNT OR EXCHANGED FOR NON-NEGOTIABLE
NON-REDEEMABLE FEDERAL RESERVE NOTES OF FACE
VALUE, you are correcting the inherent error on the front of any
check and converting it into a “bill of exchange”. In other words,
you are conducting a barter, or exchange transaction of two
different kinds of "things" for equal value, which is not taxable.
In such an exchange there are no ‘buys” or “sales” or financial
gains, just a private trade.
2
So here we have cut a Gordian knot with a pen, instead of
a sword. If you wish to use such a sharp pen, you would do well
to understand the honing and care of a good blade. Start with a
study of the life of the Master who told his disciples to sell their
cloaks to buy a sword, yet intervened when Peter used his! You
must exhaust administrative remedy first!
Making Checks a Non-Taxable Event:
Everyone that receives checks of any kind, should have a

stamp that prints: “DEPOSITED FOR CREDIT ON ACCOUNT OR
EXCHANGED FOR NON-NEGOTIABLE NON-REDEEMABLE
FEDERAL RESERVE NOTES OF FACE VALUE”. Checks endorsed
with this additional statement prior to deposit are not taxable
income BECAUSE THE INHERENT ERROR ON THEIR FACE
HAS BEEN CORRECTED.
This is all based upon what is lawful money of value for

private use by the public. There are no lawful dollars in
existence; only credit and debt ledger entries, and no one
actually gets paid for anything with anything of valuable
substance.
Ignorance is curable: Here are some observations that few realize:
1 You work for a company or you produce something of

value.
2 You receive a negotiable instrument in exchange for your

work or produce (a check).
3 You have to deposit it for “credit”, or cash it at a bank in

exchange for Federal Reserve notes.
4 You have not been paid anything of substance, merely

with credit or notes of worthless, non-negotiable, non-
redeemable securities (promissory notes).
For purposes of this article, the term "security" may be taken to

mean:
(A) a share of stock in a corporation; or
(B) a right to subscribe for, or to receive, a share of stock

in a corporation; or
(C) a bond, debenture, note, or certificate, or other

evidence of indebtedness, issued by a corporation or by a
government or political subdivision thereof, with interest
coupons or in registered form.
3
Now you have been given "evidences of debt" for your work. You
have never made "income" but received evidences of debt. The
government admits to the fact that Federal Reserve notes are
evidence of debt.
Federal Reserve notes are legal tender currency notes. The

Federal Reserve issues them into circulation pursuant to the
Federal Reserve Act. A chartered bank can obtain Federal
Reserve notes from the Federal Reserve whenever it wishes. It
must pay for them in full, dollar for dollar, by drawing down its
account with the Federal Reserve.
The Federal Reserve obtains the notes from the United States
Mint. It pays the Mint for the cost of producing the notes, which
then become liabilities of the Federal Reserve, and obligations of
the Government.
The Bank must hold collateral equal in value to the Federal

Reserve notes that the Bank receives. This provides backing for
the note issue. The idea is that Federal Reserve notes represent a
first lien on all the assets of the Chartered Banks, and on the
collateral specifically held against them.
Federal Reserve notes are not redeemable in gold, silver or any

other commodity, and receive no real backing by anything. The
notes have no value in and of themselves, but only for what they
will buy or be exchanged for. In another sense, because they are
legal tender, Federal Reserve notes are "backed" by all the goods
and services in the economy inasmuch as this is the collateral
against which they are issued as “credit instruments”.
What you receive in exchange for your company draft (pay-

check) is absolutely nothing. The alleged dollars are valueless so
you exchanged your labour for valueless paper that has a
registered lien on it already.
The terms "obligation or other security” of the government,

includes all bonds, certificates of indebtedness, national bank
currency, Federal Reserve notes, Federal Reserve bank notes,
coupons, United States Bonds, Treasury notes, gold certificates,
silver certificates, fractional notes, certificates of deposit, bills,
checks, or drafts for money, drawn by or upon authorized
officers of the government, stamps and other representatives of
value, of whatever denomination, issued under any Act
including the Federal Reserve Act.
Federal Reserve notes, to be issued at the discretion of the

Federal Reserve Board for the purpose of making advances to
chartered banks are defined as obligations of the United States
Government. Since there is no more real "money" to be
4
redeemed then, they are worthless in conformity. Ergo; you
cannot go into a bank or anywhere else and demand gold or
silver coin or anything of real value for a Federal Reserve note.
So the issue is, have you received any income that is reportable
for filing a tax form? Have you objected openly that you do not
accept Bank of Canada notes as "payment" for your labour? Or
have you consented openly? But is express consent necessary?
There is nothing in the law which says so. There is nothing in the
practice of men, or in the Municipal Law of men, or in the
practice of nations, or the Law of nations that says so. Silence is
and gives consent; and is the rule of business and law. A tender
of bills is as good as one of coin, unless the bills are objected to.
To stand by, in silence, and see another sell your property, binds
you. Silent acquiescence in the breach of a treaty binds a nation.
Simple endorsement of a check without correcting the inherent
error, is contractual, albeit tacit consent to the error, thus
binding you to the related obligations of tax.
Express consent then, is not necessary. Bank notes are the

representative of money, and circulate as such, only by the
general consent and usage of the community. But this consent
and usage are based upon the plausible convertibility of such
notes into coin or valuable substance, at the pleasure of the
holder, upon their presentation to the bank for redemption. This
is the vital principle which sustains their character as money. So
long as they are in fact what they purport to be, payable on
demand, common consent gives them the ordinary attributes of
money, but failure of the bank by which they are issued to
redeem its bills openly, avows any alleged value. Not only WILL
the bank fail, if presentation is made, the bank MUST fail by
reason of definition!
The Federal Reserve Act admits the notes are worthless and not
redeemable at par or at any other value for that matter, and as
such they instantly lose the character of money, except in the
wishful imaginations of the deceived. Their circulation as
currency ceases with the usage and consent upon which it
rested, and the notes become the mere dishonoured and
depreciated evidences of debt. It is only upon this fictional idea
that they can honestly be tendered as money, and when accepted
as such, under the same supposition, the mutual mistake of facts
should no more be permitted to benefit one party, or prejudice
the other, than if the notes had been spurious, or payment had
been made in base or adulterated coin.
Perhaps the most important aspect is that you have never

received any income in "money", but notes that are evidences of
debt issued with a lien already on them, thereby taking them out
of the realm of money, as they are a debt obligation, or in reality,
5
an I.O.U. issued by a private banking system and that are indeed
trademarked as such.
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Federal Reserve Notes Not Taxable Income

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Federal Reserve Notes Not Taxable

Except as provided in subparagraph (B), the term "debt instrument" means

This section shall not apply to -

Failure to File - Not a Crime

The complete text of this oral argument can be found at:

DEPOSITED FOR CREDIT ON ACCOUNT OR EXCHANGED

Taxes – Not Lawful: The Government Cannot and Does

Federal Reserve notes are licensed for use as money, but

Using bank notes (money) is licensed money laundering,

There are many types of commercial paper that properly

Making Checks a Non-Taxable Event:

Everyone that receives checks of any kind, should have a

This is all based upon what is lawful money of value for

Ignorance is curable: Here are some observations that few realize:

1 You work for a company or you produce something of

2 You receive a negotiable instrument in exchange for your

3 You have to deposit it for “credit”, or cash it at a bank in

4 You have not been paid anything of substance, merely

For purposes of this article, the term "security" may be taken to

(A) a share of stock in a corporation; or

(B) a right to subscribe for, or to receive, a share of stock

(C) a bond, debenture, note, or certificate, or other

Federal Reserve notes are legal tender currency notes. The

The Bank must hold collateral equal in value to the Federal

Federal Reserve notes are not redeemable in gold, silver or any

What you receive in exchange for your company draft (pay-

The terms "obligation or other security” of the government,

Federal Reserve notes, to be issued at the discretion of the

Express consent then, is not necessary. Bank notes are the

Perhaps the most important aspect is that you have never

http://www.naturalgod.com/RenderCaesar.html [Liberally edited]

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