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Originally Posted by PANICPASS
The point is David, you can't just make up your own rules and not let the other party know what those rules are. The rules are set when you sign the W-4. That's what you agree to until you put new rules in writing. You shouldn't assume they will know what you mean.
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It is clear what is meant. I do not agree with your assessment of withholdings.
What is meant by all parties is that
in anticipation of taxable events during the tax year, the employer will be sending a percentage of the paychecks,
before they are cashed, to the Treasury to be held in account. That is what the taxpayer says, according to the set rules, when the taxpayer signs the W4.
I think that what you are telling me is that the taxpayer/employee is actually cashing part of the paycheck for private credit and sending it into the Treasury through consent by signing the W4. You could be right but I do not think so.
When you cash the check for private credit FRNs then the bank can fractionalize currency by loaning out your credit. I do not see that happening with funds put in account with the Treasury. But maybe the Treasury is already using those funds for fractionalizing loans, and I am saying that does not matter. The Treasury loves to fractionalize funds and they cannot come back and say you have (had) no right to public money just because they have already fractionalized (inflated) currency on your account.
It is when you cash a check or withdraw cash that you specify non-negotiable Federal Reserve Notes. While it is in the account it really doesn't matter that the Fed and its banks are fractionalizing on the funds. They probably do it all the time regardless of the stamp on the paycheck. It is just that when you claim no taxable income on the 1040 - to get the withholdings back, they IRS cannot prove otherwise.
http://friends-n-family-research.inf...blic_money.jpg
The Fed is not complaining that they were able to fractionalize this guy's funds for two years
before he started using the stamp.
Regards,
David Merrill.