That is right. But you are probably on probation for now and will lose your new job if you start scaring your new employer - or morelike an IRS agent starts scaring Payroll about hiring you.
http://friends-n-family-research.inf...ublicMoney.wmv
Hopefully you can cash your own paychecks. Use this non-endorsement stamp or write in the verbiage with every paycheck. Then fill out a 1040 Form and include your right by law to redeem FRNs in lawful money at the original transaction when you get your cash.
Otherwise, if your new employer insists on direct deposit, put the verbiage on your Signature Card at the bank and also above your authorization card with your employer. Order up a published copy of the law (attached) by calling (719) 520-6200.
You should get a full refund of your Withholdings because your taxable income over the next tax year will be $0 reported on your 2007 1040 Form. Be warned that the IRS and Congress have retaliated against hundreds of people doing this by right with financial terrorism. They have jacked up the penalty for filing a frivolous 1040 by ten times - to $5,000.
And they have issued these instructions for the IRS agents to append that penalty:
http://www.irs.gov/pub/irs-drop/n-07-30.pdf
So be sure you understand you are redeeming FRNs in lawful money by right.
I debated this with a Treasury agent in CID named AndyK and he revealed like the Memorandum attached that the only ammo in the IRS arsenal about this is the presumption by
lawful money you must mean gold or silver coin. What you mean is US Notes in the form of FRNs. Keep that straight in your own mind and you should be okay with your new employer.
But if you think putting the verbiage on your authorization card will get you fired or even raise a stink with the company attorney, don't do it. You can prove bad faith at anytime in the future on the lawful money redemption. Just try to get paychecks you take to the bank. Avoid the Direct Deposit of your paychecks. There shouldn't be a lot of pressure about that and if there is, open a bank account using the verbiage on the authorizing Signature Card.
Regards,
David Merrill.