Ignorance is no excuse, right? Locate the "code" before you judge. Its not hard, its your duty.
- Search with ecfr.gov - U.S. Government Publishing Office
- Click Simple Search on their left-side menu
- Enter Title 26, search for...
- exempt income means - Sec. 861
- excluded income - Sec. 861, (1st occurrence in statutes or regs)
- eliminated income - Sec. 861
- eliminated items - Sec. 861
- eliminated for federal income tax - Sec. 861
- income that is exempt or excluded - Sec. 861
- gross income may include excluded income - Sec. 861
- exempt, excluded, or eliminated - Sec. 861
- exempt, eliminated, or excluded income - Sec. 861
- sources of income for purposes of the income tax - Sec. 861
- specific sources - Sec. 861
- specific guidance - Sec. 861
- how to determine taxable income - Sec. 861
- Income that is not considered tax exempt - Sec. 861
- allocation and apportionment of taxable income - Sec. 863-2, refers to 861
- allocation and apportionment of expenses - Sec. 861
- allocation and apportionment to exempt, excluded or eliminated income - Sec. 861
- allocation and apportionment of deductions - Sec. 861
- deductions to excluded income - Sec. 861
- “deductions” - Sec. 861 (only result with "quotes", Sec. 1.861-8(a))
1. "income that is exempt"
2. "Income that is not"
A real pro would already know where "Exempt income" is legally defined.
Is it ignorance of the law?
Exempt income -
26 CFR 1.861-8T(d)(2)(ii)
Income that is not -
26 CFR 1.861-8T(d)(2)(iii)
Nothing is for sale at WhatisTaxed.com
No products. No advice.
Just pure data mining.
- Exempt income
26 CFR 1.861-8T(d)(2)(ii)
"exempt income means any income that is ... exempt, excluded, or eliminated for federal income tax purposes."
- Income Not Exempt (Taxable income)
26 CFR 1.861-8T(d)(2)(iii)
"Income that is not considered tax exempt. The following items are not considered to be exempt, eliminated, or excluded income
(A) In the case of a foreign taxpayer ... gross income (whether domestic or foreign source)
(B) gross income of a DISC or a FSC; [Domestic International Sales Corp, Foreign Sales Corp]
(C) gross income of a possessions corporation
(D) Foreign earned income as defined in section 911"
Source: U.S. Government Publishing Office, ecfr.gov
Coincidence? Notice, all of the basics, including the codified, legal definition of Exempt income are prescribed by law in Section 861.
Fact: US laws, including statutes and regulations, are "codified". As with all code they are digitally precise.
According to GPO, "the Federal Government's official, digital, secure resource"...
- Only foreigners, three specific types of corporations, and those making "Foreign earned income" can have any taxable income.
- All income is "exempt, excluded, or eliminated for federal income tax purposes" except income not exempt.
Do you make "Foreign earned income"? Are you a "foreign taxpayer"? No? According to legal, codified definition of "Exempt income", the majority of Americans do not owe any income tax!
Other Code Search Options:
Try it now, click Search. Or, check Google for "exempt income means" (use quotes)
Google says Exempt income is defined by law* in Section 1.861-8T Computation of taxable income from sources...
*Sec. 861-8T is first result of a statute or regulation listed among other included results.
Fact: Google and Government Search Engines Agree
According to both the U.S. Government Publishing Office and Google, Sec. 861 prescribes legal definition for Exempt income. Regulation 861 is first GPO "code" result produced by Google (currently 2nd and 5th overall result on page 1). Section 861 is the same result produced by GPO's own search engine, eCFR, showing both Google and US Government search engines agree - section 861 prescribes the codified, legal definition of "Exempt income".
Following images are from Google's now defunct Uncle Sam search engine. These images also display a previous version of eCFR.gov. But even today, GPO site links are still found on first page of Google search results.
Click image or link to enlarge.
Source: Google's Uncle Sam. January 2010.
Section 861-8T was first result according to 'Uncle Sam', because Uncle Sam only searched government documents.
Now search Google for...
(include quotes where shown)
- ecfr "how to determine taxable income"
- regulation "excluded income"
- "the sources of income for purposes of the income tax" (look for results from ecfr.gov)
- "income that is exempt or excluded"
Why Search Regulations?
According to IRS...
- "Federal tax law begins with the Internal Revenue Code ... (26 USC)"
- "Federal tax regulations--pick up where the Internal Revenue Code leaves off" (26 CFR)
- "The Service is bound by the regulations."
Revenue Manual, 18.104.22.168.3.4
Why Section 861?
"Income that is not ... exempt" "exempt, excluded, or eliminated"
Everything has a scope. The scope for the income tax is defined (the border line is drawn) between Section 861-8T(d)(2)(ii) and (iii)
Notice, "proof" of Sec. 861 is found in the search results listed above, which were all were placed by lawmakers in just one section, Sec. 861.
What's the big deal?
Here is the map for U.S. income tax law, as it is actually codified.
Fact: Only "Foreign earned income" is taxable income. Poor Einstein didn't have a computer.
What's your excuse?
Now Search "Normal" Google
*Google Search Result - January 2010
This search result was produced before the searched text was placed on this page.
Also Google ...
- income that is exempt or excluded
Notice, the first Google result for a code section of law is 26CFR1.861-8T(d)(2).
- "eliminated income" code section
Currently, first code section of law for "eliminated income" can still be found on first page of results.
- "excluded income" code section
Now moved to 3rd page of Google results.
Google also used to include simply "excluded income" and "eliminated income" in their results, but no longer.
It would seem that Google is hiding legal definitions, especially since they've stopped their Uncle Sam search engine from educating America's tax professionals.
It doesn't take a computer scientist to search tax code for "excluded income" (ecfr.gpoaccess.gov).
Is it just ignorance? Or do you love easy money?
Judges say section 861 is frivolous, regardless of their own computer-precise results (excluded income, etc). They say, if you follow the tax laws written in section 861, you're making a
frivolous argument and must be fined, and then imprisoned.
Honestly, "Your Honor"? ... Punishing people
for actually following the law?
There is no need to pretend "tax code" is harder than it really is, because "excluded income" occurs for the very first time (within all tax law, USC or CFR) in section 861. And, among thousands of sections, only ONE section of U.S. law has "codified" instructions for "how to determine taxable income" ...Section 861. Frivolous? Or just a simple fact?
Stop Ignoring Regulations
According to tax "code", regulations cannot be avoided - including Section 861.
A. "Taxable income from sources within United States" - 26USC861
B. "Gross income from sources within United States" - 26USC861
"deductions ... shall be allocated ... under regulations" - 26USC863
Source: GPO http://www.gpoaccess.gov/uscode/search.html
Notice, "deductions" are missing from 26USC861, because they "shall" be allocated "under regulations".
Do you even know where "Exempt income" is codified (legally defined)?
Have you considered...
1. "Income that is not considered tax exempt"
2. "excluded income"
3. "specific sources"
Lawmakers do not read the laws they pass, and, clearly, neither do judges.
Be professional - have some "honor". Use your computer and search the Code!
Judge, You swore an oath. Follow the law. It's written. It's your duty. It's your job. It is why WE pay you.
Law is codified, and code doesn't lie. Ignorance of the law is no longer acceptable for so-called tax "experts" & "professionals".
Aren't exclusive, one-time code instructions applicable to everyone?
- "how to determine taxable income"
- "the sources of income for purposes of the income tax"
- "deductions to excluded income"
- "exempt, eliminated, or excluded income"
What do think your computer (i.e. tax software) would produce if given the actual tax "code" instructions, instead of the fraudulent results produced by all tax software available today? All tax software is fraudulent, if it ignores the legal definition of "Exempt income". Notice, these code instructions cannot be confused with other instructions, because ...they're exclusive. They exist in only one location, Sec. 861.
Judge? Tax Professional? ... Taxpayer? Can an expert really be called "expert" but not even know where
"Exempt income" is legally defined (codified, i.e. actually written)? Is a judge qualified to judge a tax case, and remain ignorant of "excluded income"?
Is it "professional" for tax professionals to handle our hard-earned money without the basic knowledge of their chosen profession, e.g. "eliminated income" and "eliminated items"? ... Not to mention, the rules for allocation and apportionment of deductions?
Whom are you serving?
Don't accept your ignorance! It's a duty to know the law. Search the Official Source:
U.S. Government Printing Office
Print this ... and show it to your "tax professional". (Source: GPO 2004)
Tax law is very easy. So easy that everything most Americans need to know about U.S. Income taxes fits on just one page. Law is codified, and code doesn't lie.
Want to learn more about Government income tax fraud?