What is legal tender?Legal Tender is anything recognized by law as a means to settle a public or private debt or meet a financial obligation, including tax payments, contracts, and legal fines or damages. The national currency is legal tender in practically every country. A creditor is legally obligated to accept legal tender toward repayment of a debt.So what does that mean for you?Well, if you're ever in the position of owing someone money - whether it's the government or your next-door neighbor - you can rest assured that they have to accept whatever form of payment you offer them as long as it's considered legal tender. So go ahead and pay your taxes with Monopoly money - the IRS will be more than happy to take it off your hands.