Data-mining the Tax Code
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Data-Mining the Tax Code -



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The US Tax Code and the Code of Federal Regulations show that income for most Americans is "excluded, or eliminated for federal income tax purposes." You can easily see this with a computer because the Income Tax has been codified.

Download 26-CFR:
* orig. source: GPO

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TEXT/HTML version (a repaired copy of the broken original from the GPO, the most accurate, search it on your computer).
PDF version (easy to search, compiled into one file).
GPO eCFR Don't download anything. Instead, search the eCFR (the most user-friendly, online search tool available from US Government source).
Or Compile your own copy of 26-CFR (we'll tell you how to make a complete copy of all sections from the GPO, something even they didn't bother to do until late 2004 [2005]... Not fun, but possible).

See How to Search


Not sure what this website is about?

See a plain and simple diagram...

Diagram of income tax.


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Poor Albert, he didn't have a computer, and didn't know  "how to determine taxable income". Unfortunately for us, he left such critical thinking to his accountants.

"The hardest thing in the world to understand is income tax."

Wrong! Tax is easy.
See: PDF - Tax law


Do yourself a favor, don't be so trusting, use Open Source software...

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Did you know the Income Tax/Money Scam has been made into a movie?

Aaron Russo, who made the movies "The Rose" with Bette Midler, and "Trading Places" with Eddie Murphy, made a movie that exposes the politicians and their income tax fraud.

You can watch this movie free on Google Video.

America: Freedom to fascism


Download Posters

All we need is the right major crisis and the nations will accept the New World Order.

It's not a joke. What is Taxed?


What is Taxed?

Download T-Shirt Templates

It's Not a Joke. Joker Obama - Download PDF image

Fascist Joker Bush - Download PDF image

* Save these PDF images then upload to to make your own high-quality short or long sleeve t-shirts.

Income Tax In A Nutshell

Fundamentally, there are only two (2) objects in income tax law...

  1. Exempt income
    Deductions to excluded income. "income that is ... exempt"

  2. Taxable income
    Taxable income "Income that is not ... exempt"

All income is Exempt, except Taxable income.
Ultimately, income is either
or taxable


The tax due is only a percentage of taxable income. In addition, the actual tax due is only a percentage of taxable income, not a percentage of all income.


Data mining income tax code will produce the following...

1. Tax imposed

"There is hereby imposed on the taxable income of every Taxable Incomeindividual...a tax"
- 26 USC Sec. 1



2. "taxable income"

"In general ... the term ``taxable income'' means gross income minus the deductions"
- 26 USC Sec. 63

Notice “deductions”



Taxes, Too Complicated?

The Supreme Court has said, it is a "well-settled rule that the citizen is exempt from taxation unless the same is imposed by clear and unequivocal language, and that where the construction of a tax law is doubtful, the doubt is to be resolved in favor of those upon whom the tax is sought to be laid"
- 192 U.S. 397, p-416

Paul Harvey exposes something the IRS wanted to hide.

News commentator Paul Harvey, on January 22, 2007, explains how this Supreme Courst decision was put into action...

"Now for what it's worth, the 9th circuit panel in San Francisco has been reversed. The Internal Revenue Service, the IRS, has ruled that Valerie and Robert McKee owed the government $31,000 in unpaid taxes, until Valerie and Robert demonstrated in court that the tax law is so complex nobody can understand it. The court had to agree that the law was indeed so complex that nobody can understand it, and the court reversed itself, and the IRS gets the bill. The government also sought and got us...ha ha ha (laugh)... your government also tried to get a stipulation that this verdict would not be made public, but it just was... Paul Harvey, Good Day!!"

Case Information:
No. 04-74846
IRS No. 4036-03

-- To hear this Paul Harvey sound clip and more, visit

Except as otherwise provided... all income 3. "gross income"

"Except as otherwise provided in this subtitle, gross income means all income from whatever source derived"
- 26 USC Sec. 61



4. Otherwise provided

"Items of gross income, expenses, losses, and deductions, other than those specified in sections 861(a) and 862(a), shall be allocated or apportioned to sources within or without the United States, under regulations prescribed by the Secretary."
- 26 USC Sec. 863

Question Where's the “deductions”?

Search "under regulations" for “deductions”

(Include HTML characters and semicolon)

Sec. 861 Sec. 861. Coincidence?


5. "under regulations"

Search laws at - See results at

"(a) Gross income means all income from whatever source derived, unless excluded by law."
"(b) ...To the extent that another section of the Code or of the regulations thereunder, provides specific treatment for any item of income, such other provision shall apply notwithstanding section 61 and the regulations thereunder."

- 26 CFR Sec. 1.61-1


Notice So, "notwithstanding (in spite of) section 61" (and it's claim to "all income from whatever source"), if another section "provides specific treatment ... such other provision shall apply".



6. Such other provision

  Source: Government Printing Office -

Taxable income Search for:

  1. "how to determine taxable income" - 26 CFR Sec. 1.861-8(a)(1)

  2. "specific sources" - Sec. 1.861-8(a)(1)

  3. "specific guidance" - Sec. 1.861-8(a)(1)

  4. "excluded income" - Sec. 1.861-8 and 1.861-8T

  5. deductions to excluded income"deductions to excluded income" - Sec. 1.861-8(a)(4)

  6. "eliminated income" - Sec. 1.861-8(d), and 1.861-8(d)(2), and 1.861-8T(d)(2)

  7. "eliminated items" - Sec. 1.861-8T(d)

  8. "Allocation and apportionment to exempt, excluded, or eliminated income." - Sec. 1.861-8(d)(2)

  9. Fact: All income is Exempt, except Taxable income."exempt, eliminated, or excluded income" - Sec. 1.861-8T(d)(2)(iii)

  10. "the sources of income for purposes of the income tax" - Sec. 1.861-1(a)

  11. “Gross income may include excluded income” - Sec. 861-8(b)"income that is exempt or excluded" - Sec. 1.861-8T(d)(2)

  12. "gross income may include excluded income" - Sec. 1.861-8(b)(1)

  13. "specific rules for allocation and apportionment of deductions" - Sec. 1.861-8(a)(5)(ii)

  14. "expenses, losses, or other deductions" - Sec. 1.861-8T(d)(2)(iii)

  15. Income not exempt "income that is not considered tax exempt" - Sec. 1.861-8T(d)(2)(iii) - The list of taxable items (Income not exempt)



Sec. 861 For more, see boolean search results from regulations, and search results from statutes - According to law and who is taxed.




7. "Allocation and apportionment to exempt, excluded, or eliminated income."

For "deductions to excluded income" the regulations tell us to "See paragraph (d)(2)" ...

Sec. 1.861-8(d)(2)
Allocation and apportionment to exempt, excluded, or eliminated income. [Reserved] For guidance, see Sec. 1.861-8T(d)(2).

And Sec. 861-8(d)(2) tells us to see Sec. 861-8T(d)(2) ... T is for temporary.



8. "For guidance, see Sec. 1.861-8T(d)(2)"

Question What is "exempt income"?

Definition of Exempt income
"income that is ...exempt"

Income Tax fact "Exempt income and exempt asset defined--(A) In general. For purposes of this section, the term exempt income means any income that is, in whole or in part, exempt, excluded, or eliminated for federal income tax purposes."
- CFR Sec. 1.861-8T(d)(2)(ii)


Question What income is not exempt? i.e. Taxable income

List of Taxable income
"income that is not...exempt"

Income Tax fact "Income that is not considered tax exempt. The following items are not considered to be exempt, eliminated, or excluded income and, thus, may have expenses, losses, or other deductions allocated and apportioned to them:"
- 26 CFR Sec. 1.861-8T(d)(2)(iii)

Income Tax fact Sec. 1.861-8T(d)(2)(iii) lists taxable income - what is taxed.

Code is precise. Supporting terms found in 861: specific sources, specific guidance, excluded income, eliminated income, eliminated items, & the legal definition for exempt income.


The list of taxable income

Sec. 1.861-8T(d)(2)(iii)
"Income that is not considered tax exempt [i.e. taxable income]. The following items are not considered to be exempt, eliminated, or excluded income [i.e. The following items are taxable income] and, thus, may have expenses, losses, and other deductions allocated and apportioned to them:

(A) "a foreign taxpayer... gross income (whether domestic or foreign source)"
[ e.g. "all income from whatever source" ]

(B) "gross income of a DISC or a FSC"
[These are Domestic International Sales or Foreign Sales Corporations]

(C) "gross income of a possessions corporation"
[Possessions are places like Guam, American Samoa, Northern Mariana Islands.]

(D) "Foreign earned income"
[The requirements for making foreign earned income are greater than you think. Search for the definition of "foreign earned income." e.g. Just because you might be making money from another country doesn't mean you make foreign earned income.]

The list of taxable income Notice domestic earned income has been excluded from the list of taxable items.

Income Tax fact Domestic earned income is "excluded by law" - the term doesn't even exist in the code or regulations.


whatever, unless excludedIt shouldn't be a surprise that something has been excluded by law. We are told by statutes to expect this...

"Except as otherwise provided" - 26 USC Sec. 61

And by regulations...

"all income from whatever source ... unless excluded by law." - 26 CFR Sec. 1.61-1(a).

But, Domestic earned income is not in the list of taxable income, because it is "excluded by law".




Gross income "means all income from whatever source".

But, the tax is "imposed on the taxable income".



Taxable Income

The only item from the list of "income that is not ... exempt" which is applicable to American citizens is Item D, . "Foreign earned income". However, most Americans do not have any "Foreign earned income".

Thus, according to law, most Americans do not owe federal income tax. Their income has been "excluded by law."

Can't judges use a computer? Search the Code! Your fraud is just too obvious.
Congress, Secretary, IRS, Judges, CPAs, tax lawyers, tax software writers, ...

Explain yourselves! Ignorance of the law is no excuse. Right? We expect accuracy when we pay you to work.

If Sec. 861 is frivolous, then where is the law that you claim to follow? Thousands of people, including your own IRS agents, have asked you this many times, but you, and IRS Commissioner, Mark Everson, have ignored this question.

What is the section number? ... Evidently, it is Sec. 861.

Either you know the law or you're not the experts you pretend to be.

So easy a child can do it.The truth is tax law is so simple a child can figure it out. It shouldn't be long before many of them do. (If teenagers can hack into NASA, the Air Force, government computers, etc, they can easily figure out a simple tax code.)

  • CNN: Teen charged with hacking into Air Force system
  • PBS: Interview: anonymous. Young hacker caught breaking into NASA's computers
  • Zdnet: Teen hacks 27 ISPs, gains root access
  • Cooltech: Another teen hacks NASA

The Code does not lie, but judges, politicians, and bureaucrats do.


All of the Titles of Law are suspect of your color of law, and all are candidates for data mining.



Attention Researchers

If any link has disappeared, try to copy and paste the link address at


The intended purpose of this website,, is to data mine with a computer the Internal Revenue Code, and the Code of Federal Regulations, Title 26, for the "codes" (e.g. taxable income, gross income, excluded income, eliminated income, exempt income, deductions, allocation, apportionment, etc), for rules, and instructions, for determining income tax. The results have been published throughout this website. It should be evident these search methods may be applied to any Title of Law, or large volume of text, and in any country that has codified laws and rules. See How to Search.

Nothing is for sale at Information posted at should not be considered legal advice and is solely for educational purposes. The reader should not rely on information provided herein to determine tax.

Do not accept this website as tax advice.
is only tax research from data mining tax law.

To contribute - See How to Search, and Contact Us.

We do not sell, promote, or advise anything, but data-mining, searching, and reading tax code with the only appropriate code tool ... your computer.

We do find every occurrence of a particular code-term to establish precisely what is written, and what is not written in tax law. When we say, no other rule or statute exists - for example, regarding excluded income, we show you how many files contain this important code term, and how we searched for it with a computer. You can easily verify any of the laws, rules, or code-terms in question, and you should verify every result because it is your duty to know and follow the law. Ignorance is no excuse.

You are responsible for doing your taxes.

Questions: If you have questions, try asking your Congressperson or Senator.

Question Ask your lawmaker to explain these Sec. 861 search results ...

  1. "eliminated income" - Sec. 1.861-8(d), 1.861-8(d)(2), 1.861-8T(d)(2)
  2. "excluded and eliminated items of income" - Sec. 1.861-8T(d)
  3. "eliminated items" - Sec. 1.861-8T(d)
  4. "excluded income" - Sec. 1.861-8 and 1.861-8T
  5. "income that is exempt or excluded" - Sec. 1.861-8T(d)(2)
  6. "specific sources" - Sec. 1.861-8(a)(1)
  7. "specific guidance" - Sec. 1.861-8(a)(1)
  8. "how to determine taxable income" - Sec. 1.861-8(a)(1)
  9. "the rules [of Sec. 1.861-8 ...] for determining taxable income" - Sec. 1.863-1(c)
  10. "Exempt income ... defined" - Sec. 1.861-8T(d)(2)(ii)
  11. "income that is not considered tax exempt" [i.e. taxable income] - Sec. 1.861-8T(d)(2)(iii)


Ask your Congressman and Senator ...

Question If "Exempt income" is "defined" in Sec. 861, why is Sec. 861 frivolous?

Find your Congressperson:
Find your Senator:

Answers: If you want answers, you can try asking the press - the American media and foreign media.


The Code of Federal Regulations

When searching tax law, we pay close attention to 26 CFR...

"the Official Interpretation"

"Federal Income Tax Regulations (Regs) are the official Treasury Department interpretation of the Internal Revenue Code"
- Internal Revenue Manual,
"Federal Tax Regulations pick up where the Internal Revunue Code (IRC) leaves off by providing the official interpretation of the IRC"

The Code of Federal Regulations are the rules, written in plain English, which both the public and the IRS must follow:

"The Service is bound by the regulations."
- Internal Revenue Manual,

Since "the Service is bound," we can be sure that we are playing by the same rules. It does not require a law degree to understand them. See How to Search and Search Examples.



All data mining research contained herein is Copyright © 2001-2011 Zolt [at] Permission is hereby granted for all use, Copyleft © 2001-2011 Zolt [at] Many logos and images are owned by others and protected by copyright and/or trademark. We believe their use qualifies as fair use under United States copyright law.