Additional background on
FRNs:
Great IRS
Hoax, section 5.6.2
18 U.S.C. §8
TITLE
18 > PART
I > CHAPTER
1 >Sec. 8.
Sec. 8.
- Obligation or other security of the United States defined
The term ''obligation or other security
of the United States'' includes all bonds, certificates of indebtedness,
national bank currency, Federal Reserve notes, Federal Reserve
bank notes, coupons, United States notes, 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 United States, stamps and other representatives
of value, of whatever denomination, issued under any Act of Congress,
and canceled United States stamps
12 U.S.C. §411
TITLE
12 > CHAPTER
3 >
SUBCHAPTER
XII > Sec. 411.
Sec.
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
31 U.S.C. §3121
TITLE
31 >
SUBTITLE III >
CHAPTER
31 >
SUBCHAPTER II > Sec. 3124.
Sec.
3124. - Exemption from taxation
(a) Stocks and obligations of the United States Government
are exempt from taxation by a State or political subdivision of
a State. The exemption applies to each form of taxation that
would require the obligation, the interest on the obligation, or
both, to be considered in computing a tax, except -
(1) a nondiscriminatory franchise tax or another nonproperty
tax instead of a franchise tax, imposed on a corporation; and
(2) an estate or inheritance tax.
(b) The tax status of interest on
obligations and dividends, earnings, or other income from evidences
of ownership issued by the Government or an agency and the tax treatment
of gain and loss from the disposition of those obligations and evidences
of ownership is decided under the Internal Revenue Code of 1986
(26 U.S.C. 1 et seq.). An obligation that the Federal Housing Administration
had agreed, under a contract made before March 1, 1941, to issue
at a future date, has the tax exemption privileges provided by the
authorizing law at the time of the contract. This subsection does
not apply to obligations and evidences of ownership issued by the
District of Columbia, a territory or possession of the United States,
or a department, agency, instrumentality, or political subdivision
of the District, territory, or possession