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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


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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


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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?

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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.

Data Mining Tax Law - A computer scientist's guide to finding all “deductions” in the "code."

Excluded income & Income that is not... Here is a secret you are not supposed to know...
It can be demonstrated (and proven) using any computer that U.S. Income tax is fraudulently imposed. According to the code, only "Foreign earned income" is taxable income. Most Americans owe nothing! The "Code" does not lie.

Where are the “deductions”? What's "excluded income"? What is taxed?

Here is a simple test for 'tax experts' - i.e. tax professionals, CPAs, judges, IRS agents, Department of Justice, law professors, tax software developers, Senators, Congressmen, bureaucrats...

Question Where is "Exempt income" legally defined (codified)?

A simple Income Tax fact - Sec. 861-8T Answer: Section 861-8T "Exempt income... defined"

Ask a CPA if he/she knows where "Exempt income" is codified.Exempt income defined, & Income not exempt (taxable) - 26 CFR 861-8T(d)(2)(ii)Go ahead, test a few 'experts.' Ask or email them this simple question. You should expect accuracy when paying 'professionals' to perform. Ask your CPA, or even a law professor, to provide the section number which defines Exempt income. Ask the IRS. Ask a judge. Ask your tax software developer. All of these experts should know exactly where "Exempt income" is defined. It's just an easy Tax-101 question, but it's their job to know it.

Because statutes and regulations are codified, a simple search will accurately show every section written for exclude income, eliminated income, eliminated items & the legal definition of Exempt income. Find everything, and anything, ... without an 'expert.'

You can search U.S. tax code using your computer, or the Government's own search engines, both methods are described here.

Simply find the "code-words" which you think are necessary for determining taxable income, ... do some data mining. You'll soon find Section 861 and will see there can be no misunderstanding ...

... and others "which we may identify as the Round Table Groups" U.S. Income tax is a scam implemented under color of law by politicians and bankers.

Important Fact: Exempt income is legally defined in Sec. 861, and, according to "code", only "Foreign earned income" is taxable income.


1. Code of Federal Regulations



The "code" in the Code of Federal Regulations has many instructions and code-words which are written in just one section (leaving little room for doubt or uncertainty).

Income Tax fact Fact: These tax instructions are only written in Sec. 861...

  • "how to determine taxable income"
  • "eliminated income"
  • "eliminated items"
  • "specific sources"
  • "specific guidance"
  • "the sources of income for purposes of the income tax"
  • "income that is exempt or excluded"
  • "exempt, eliminated, or excluded income"
  • <i>exempt income</i> (include HTML characters)
  • &ldquo;exempt income&rdquo; (include all characters)
  • &ldquo;deductions&rdquo; (include all characters)
  • "deductions to excluded income"
  • "income that is not considered tax exempt" (i.e. taxable income)

    Verify everything, Fool.Confirm with the Source: Government Printing Office

Among thousands of sections of law, these instructions & code words are found in just one section - 861. There are more search results like these, including several boolean search results, in tax regulations and statutes. All results have one thing in common - Section 861.

Section 861 is the law. Why Section 861 ?

The most basic and fundamental objects in taxation (and/or their instructions) are written specifically in section 861. Obviously, such basics would include the rules... for determining taxable income, gross income, exempt income, excluded income, eliminated income, ...and rules for expenses, losses, deductions, and the allocation of each of these. In fact, only section 861 has all of these.

Income Tax fact Fact: Required "code" is prescribed specifically within Sec. 861 ...

  • "excluded income"
  • "gross income may include excluded income"
  • "deductions to gross income"
  • "the rules... for determining taxable income" (use Boolean search)
  • All income is Excluded, except Taxable income."allocation and apportionment of deductions"
  • "allocation and apportionment of expenses"
  • "allocation and apportionment of taxable income" (see Sec. 863-2(b) referring to 863-1 referring to 861-8)
  • "allocation and apportionment to exempt, excluded, or eliminated income"
  • "exempt, excluded, or eliminated for federal income tax purposes"

    Source: GPO -



Nothing is for sale at
No products. No advice. Just pure data mining. What is taxed?
Solve the mystery.

Code does not lie.

Short on time?
• Read Legal definitions
• Examine a Diagram
• See In a nutshell
Search the code
• Watch Short videos

Ignorance is no excuse. VIDEO: What is Taxed - Data mining tax code

• Read Who is taxed
• See a Graphical view

Tax Graph: Frivolous Pie

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What is Taxed?

Don't believe us.
Don't believe "experts."
Believe your own eyes.

Search regulations with your computer. Learn what is taxed according to law

Data mine the Code.

Looking for Taxable Income, Gross Income, or Excluded Income? Use the code

Even the IRS loves data mining.

Evidently, the IRS knows how to data mine your info, but they can't bother to data mine their own regulations.

'Tax Experts?' ... Pffff!


... Turbo Tax, H&R Block, TaxAct, etc ...
Tax software experts? Or clowns? Treason is in the air. Nothing is hidden that will not be revealed, including any crimes. Ask them ... Where is “exempt income” legally defined? Ask them ... Where is “exempt income” legally defined? Ask them ... Where is “exempt income” legally defined? Ask them ... Where is “exempt income” legally defined? 100% Accuracy? (Ba Ha!) Where is “exempt income” legally defined?

... Aren't you just frauds?

Question Where is "Exempt income" defined in tax law?

Have none of you 'tax experts' ever thought to ask this simple question? Certainly, many of you found this long ago, but kept very quiet ... Where did you get your code? Who gives it to you?

  1. How do 'tax experts' calculate income taxes without using "the rules ... for determining taxable income"?
  2. How does your tax software calculate deductions without using the code written for the "allocation and apportionment of deductions"? What, nobody has deductions?
  3. How about the "allocation and apportionment of expenses"? ... Nobody has expenses?
  4. How about "allocation and apportionment of taxable income"? ... What the hell?
  5. How does tax software, such as Turbo Tax, TaxAct, and H&R Block, even function, if it doesn't consider "excluded income", "eliminated income", "eliminated items", "exempt income", ... or the income that is not ... exempt?


Uuhhh ... That's frivolous
How many CPAs, tax professionals, judges, IRS agents, Department of Justice, law professors, tax software developers, Senators, Congressmen, and bureaucrats does it take...

... to find the legal definition of Exempt income?

"Duh... I am a law professor. I know for sure tax law doesn't define exempt income. Besides, that's just crazy."How is it that nearly all of you can spend your entire careers involved in taxation but not bother to find this basic definition?

"How terrible it will be for you experts in the law. You have taken away the key to knowledge. You didn't go in yourselves, and you kept out those who were trying to go in." - Luke 11:52 ISV

Taxable or Exempt (it's only as complicated as day or night) ... Other 'experts' can be understood, "so interested in its profits, or so dependent on its favours that there will be no opposition from that class," but law professors? What the hell? You suck! Evidently, truth is not your religion.


"How fortunate for leaders that men do not think." -- Adolf Hitler “Geld regiert die Welt... Good thing I found financing. I couldn't have done it without those two moneychangers.”

Income Tax fact Fact: "Exempt income" is legally defined in Section 861 ... Thus, 861 can never be frivolous.

"(ii) Exempt income and exempt asset defined
...the term exempt income means any income that is ... exempt, excluded, or eliminated for federal income tax purposes."
- 26 CFR 1.861-8T(d)(2)(ii)

Income Tax fact Taxable income is specified after Exempt is defined...

"(iii) Income that is not considered tax exempt. The following items are not considered to be exempt, eliminated, or excluded income" - 26 CFR 1.861-8T(d)(2)(iii)


Only Section 861 prescribes the two most important items for any income tax...

1. Exempt income defined, & Taxable income listed.Exempt income

"exempt income means any income that is exempt, excluded, or eliminated..."

2. Taxable income

"Income that is not ... exempt." (taxable income)


Federal tax regulations-- pick up where the Internal Revenue Code (IRC) leaves off You can confirm section 861 using the government's own search engine

Click on Simple Search >> Enter Title 26 >> Search for:

  • excluded income (13 matches*)
  • eliminated income (4 matches*)
  • eliminated items (1 match*)
  • specific sources (3 matches*)
  • specific guidance (1 match*)
  • how to determine taxable income (2 matches*)
  • exempt income AND defined (40 matches*) - Use boolean search

    *Results from year 2008

Search tax regulations for “specific guidance”. Notice... Section 861 is not frivolous.

Statutes and regulations do not say what you think and Ignorance of the law is no excuse.


Two Kinds Of Income



All income is excluded, except Taxable income. Ultimately, you will find there are only two (2) kinds of income...
1. excluded income

  2. taxable income


Ultimately, income will be taxed, or it will be excluded (exempt).


Taxable income (Income not exempt)



It's no secret, it's even written in Form 1040 Instructions provided by the IRS. And it's prescribed by law in regulations ...

"Federal tax regulations-- pick up where the Internal Revenue Code (IRC) leaves off"
“Deductions to excluded income” - 26 CFR 861

Question What? "Gross income means all income ... that is not exempt from tax"
-- IRS Form 1040 Instruction booklet - Filing Requirements, Chart A

Exempt Income defined, & the list of taxable income, 26 CFR 1.861-8T(d)(2)(ii) and (iii).

Income Tax fact Where? "Income that is not considered tax exempt"
-- Federal tax regulations -- 26 CFR Sec. 861-8T(d)(2)(iii)

IRS Customer Service: "Someone will be with you shortly. " Later: "Shut your mouth, Boy!"Data mining produced this result in seconds. Excluded income & Income that is not...

Many IRS agents have been trying to tell you for years, it's a fraud. But, that doesn't make the news. According to data mining with government search engines, the actual income tax law is found in 26 CFR 1.861-8T

  1. Exempt income is "defined" in 1.861-8T(d)(2)(ii)
  2. Taxable income is prescribed as "Income that is not considered tax exempt" in Sec. 1.861-8T(d)(2)(iii)

You can confirm anything your 'tax expert' tells you, and you can verify everything written here at, quickly. The law is codified ... the results are the same for everyone.

Many code-words verify that Sec. 861 prescribes the list of taxable income, exclusively. According to the list, Americans are being scammed - only "Foreign earned income" is taxable.

Wake up, Slave! ... "Awake you that sleep, and arise from the dead" Don't believe it?

"The following income tax returns shall be filed" (1 match) - Sec. 6091-3
(Search with ecfr. Use 'Simple Search', No quotes)

Notice, it's all foreign.

But it gets worse, Slave.



Did you know

Federal Income Tax does not pay for any government services...
No roads, No schools, No fire dept., nothing!

Income tax does not pay for any roads.    Income tax does not pay for any schools. Income tax does not pay for fire departments.

No roads ... No schools ... No fire departments ... Nothing!

This is not fabrication. In 1984, a government report stated...

"100% of what is collected is absorbed solely by interest on the Federal debt and by ... transfer payments. In other words, all individual income tax revenues are gone before one nickel is spent on the services which taxpayers expect from their Government."
-- Grace Commission Report (PPSS) - Ordered by, and submitted to President Ronald Reagan on January 15, 1984 (wiki)

Income Tax fact Fact: "100% of what is collected is absorbed"
According to the U.S. Government, the Income Tax does not pay for our government services... "all individual income tax revenues are gone before one nickel is spent on the services".

Evidently, something else covers the cost of government services.



2. The United States Code



Ignorance is no excuse. Search the USCDo you think Sec. 861 is just a fluke or coincidence? All the search results shown so far come from regulations, but data mining can also be performed on tax statutes found in 26USC. A powerful data mining technique known as a boolean search makes it possible to find every statute having all of your desired "code-words".

Search using the government's own search engine...
(right-click, choose Open in New Window)


Just a Simple Tax Question

Question Which section prescribes "taxable income" for a "citizen" of the "United States"?

Copy and paste the following line into the GPO's search box.

26USC* AND "taxable income" AND "citizen" AND "united states"

GPO's search engine will return only the sections that have these specific "code-words".

What it means:

  1. 26 is the Title number for the Internal Revenue Code (26USC).
  2. The asterisk* tells their search engine to search through every section of income tax law in 26USC.
  3. The AND (a boolean function) tells their search engine to find every section having all "code-words".

Income Tax fact Answer:

Section 861 is the law. Search & see.Section 861 is the law. Search & see. Section 861

For more search results from U.S. Code, see Who is Taxed and According to Law.

Politicians and bureaucrats claim that following Sec. 861 is frivolous.

The reward for following the code.Sec. 861 may be the only law which the Government does not want us to follow.

The code contradicts the politicians and judges. But, because U.S. Federal Income tax has been codified, it is possible to find every law, rule, and instruction for any subject by using a computer. And, it can be done fast and easy. You will be able to determine exactly what is written, and what is not. There is no need to trust that your 'tax expert' has actually read the tax law and knows what he or she is talking about. (You've probably seen news stories before, where "x" number of 'tax professionals' were hired, they got "x" number of results.)

Learn how to search laws yourself, because you are ultimately held responsible for your taxes, anyway.

Politicians and bureaucrats imply "all income" is taxable. However, you'll see the law states, "Except as otherwise provided". You'll find it "provided" in Title 26, CFR Sec. 1.861-8T(d)(2)(iii). See it In a Nutshell. Find out exactly what you've been commanded to do (shall), and what you have not, ... under any Title of Law. If the laws, or rules, in your country have been codified, nothing can be hidden.

The data mining results cannot be faked. Force yourself to look, it's a duty to know the law, Ignorance is no excuse. You just won't believe it until you see it with your own eyes. Be sure to utilize a computer's precision, it's the only appropriate code tool.

According to the US Tax Code, and the Code of Federal Regulations,
most U.S. citizens don't owe any federal income tax.

According to the list of income not exempt, which is located in CFR Sec. 861-8T(d)(2)(iii), only foreign earned income is taxable income. This is not just an opinion, it is digitally-precise fact. All you need to do is search the law, to see what is written, and where it is written.


Three Standards of Proof

In the U.S. courts, there are three standards of proof - 1) Preponderance of evidence, 2) Clear and convincing evidence, 3) Beyond reasonable doubt. Each standard is easily met. Prove it to yourself.


Beware the Color of LawNothing is for sale at
We do not promote anything or offer any tax advice. You'll just have to follow the laws yourself. But, if you use the code, and a computer, you'll find that judges, politicians, and so-called 'experts' are ignorant, or pretending to be, and illegally taxing and scamming Americans under Color of law.


Tax Rule No. 1 : "The tax imposed is upon taxable income"
[Title 26, Code of Federal Regulations, Sec. 1].

So, search for taxable income ... and use the Government's own search engine

  • "how to determine taxable income" (1 regulation. What's the section number?)
  • "the rules" AND "for determining taxable income" (1 reg.) [Boolean search]
  • "taxable income" AND "specific sources" (1 reg.)
  • "taxable income" AND "specific guidance" (1 reg.)
  • "income for purposes of the income tax" (1 reg.)
  • "income that is not considered tax exempt"
    [income not exempt, i.e. income that is taxable] (1 reg.)

Or, have your computer show you

  • All the rules for "excluded income" (7 regulations)
  • instructions for "allocating deductions" (5 regulations)
  • All the rules for "eliminated income" (2 regulations)
  • The rule for "eliminated items" (1 regulation)
  • "excluded from gross income entirely" [showing "more common items are... excluded"] (1 regulation)
  • "income that is exempt or excluded" (1 regulation)

There are more like this. Search for any code-term that you have determined is necessary, or even reasonable, for a computation of tax. You'll soon become very familiar with...

"the rules [of Sec. 861] for determining taxable income"

According to the Code, the US Income Tax is a fraud, and Color of law.

This simple method of searching applies to all Laws (Homeland Security, Banks and Banking, Food and Drugs, Judicial Administration, Money and Finance: Treasury, etc), and to their Regulations, or anything else codified.

* The research published here (who and what is taxed) assumes there already exists proper authority, jurisdiction, citizenship, being an employee, earning wages, etc. But here at, even the 16th amendment is assumed legal. Of course, all of these conditions have major problems, and could be the topics of their own websites. This website is about What is taxed, & excluded, and assumes we are all subject to the tax imposed.


Income Tax?

Tax regulationsObviously, tax rules should contain:

1) A list for what is taxed
2) Instructions for how to determine tax

These are required, so people will know exactly what is excluded, deducted, or taxed. Isn't that the purpose?

Fact: Only 1 regulation, Sec. 861, provides the following:

  • "specific guidance"
  • "specific sources"
  • "the sources of income for purposes of the income tax"
  • "Income that is not considered tax exempt." [i.e. income that is taxable; taxable items.]
  • The definition for "exempt income"
  • "eliminated income"
  • "determining taxable income of the taxpayer"
  • "determining taxable income from specific sources"
  • "how to determine taxable income"
    [Why do you think this isn't Tax Rule No. 2, but instead is found near 6000 pages later in the 9th Volume? Why hide such an important instruction?]

Many one-of-a-kind instructions, cross references, and even an index tell people to use Sec. 861 to determine tax. Why are these ignored?

Remove all ignorance, doubt, and lies by data-mining the tax code - the Code of Federal Regulations and US Code.

Find any rule in the book.

Whatever Incomes or Taxable?

"Income that is not considered tax exempt"

They make it clear, since we also get - income that is exempt or excluded - and - income that is not...exempt



See exactly what is taxed.

Many people know there is taxable income, and non-taxable income, but the regulations say,
"The tax imposed is upon taxable income" (1 file).

According to "the rules... for determining taxable income " (1 file),
only foreign earned income is taxable income for a U.S. Citizen.

Where are the Rules?
 "the rules": (1338 files found)
 "taxable income": (817 files found)
 "determining tax": (49 files found)
 "determining taxable income": (29 files)
 "determine taxable income": (6 files)
"the rules...for determining taxable income" (1 file found) 26 CFR Sec. 863-1(c)

Among the millions of words in the tax law, in statutes and regulations, this prescription occurs only once. It says the rules are located in Sec. 861 and the regulations thereunder.

If "the tax imposed is upon taxable income", then most Americans owe ZERO.

The United States tax laws almost completely contradict the IRS. So, which one is broken?

This is not a tax scam promotion - nothing is sold. Do not believe anything we tell you, it is far too easy to see it for yourself. This is only research (easily repeatable) of what is actually written in tax code, and in the US tax rulebook - Title 26, Code of Federal Regulations. According to law, you are reponsible for your taxes, to know all the rules, and to make your own determination of your taxes. We promote nothing, except reading tax regulations, and how to search all of the Tax Code using a computer.

Important The Real Value = Sight
You may find this tax research shocking, but pay attention... the real value to be gained here is the simple search technique being used. It applies to all Titles of regulations and statutes [all laws], and to any large volume of text. It means nothing can be hidden from you. You simply need an electronic, digital copy.

The United States tax regulations, from 1913 - 2004, are also available here for free download. Search them yourself on your computer. You can compare any of the current regulations here for accuracy with any source you wish. We provide exact digital copies of the regulations from the GPO, but with all of their broken links and missing files repaired. But...


No need to take our word for it, and complicated searches are not required to find every subject. Just use the Government Printing Office search engine, - Hint: right-click, open in new window.

They make it clear, since we also get - income that is exempt or excluded - and - income that is not...exempt


Everything has a scope.


Because the US tax system is based on code (the definition of code is a system), taxable income, excluded income, eliminated income, exempt income, “deductions”, allocation of these, etc, are required code-words. If "exempt, excluded, or eliminated income" exists, the Code must provide a list, either of "exempt income", or income not exempt.


Judge? Attorney?
IRS? Congress?

Data-Mine the Tax Code -

Tax professional?
... Pfff!

One of the most basic objects in taxation is "exempt income".

Do you know where "Exempt income" is legally defined?

"Judge?" - Where is "exempt income" defined?

Section 861-8T

'Tax experts?'
Couldn't you also find
"excluded income"
"eliminated income"
"eliminated items"
Isn't that your job?

How about income not exempt (taxable)?

The least you could do is investigate by searching through regulations and statutes.

If you don't know, solve the mystery, it's your profession...

Act professional !

According to tax law (U.S. Code, and Code of Federal Regulations), most Americans don't owe any income tax. According to Sec. 861, only "Foreign earned income" is taxable income. But, the IRS, Courts, and Congress say this is a frivolous argument.

Question Is Section 861 frivolous?

Find out.

Start by searching the Code of Federal Regulations
*Source: Government Printing Office -

Why search tax regulations? - To play by the same rules as the IRS.

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

How to search regulations with a computer...

  1. Right-click on Code of Federal Regulations >> Choose Open in New Window.
  2. Click on Simple Search >> Enter Title 26
  3. Search for: [pick something, such as a required code term]
  4. Click submit search


Tax Experts? Can you be a little more "specific"?

Question Where is the "specific guidance" written in law for income taxes?

Search for - specific guidance

Income Tax factSearch the tax regulations for “specific guidance”. Fact - Specific guidance for doing income taxes is only written in Section 861. It's the only section that can provide a taxpayer with "specific guidance" for doing anything.

Coincidence? ... OK.


Question Where are the "specific sources" of taxable income?

Search for - specific sources

Income Tax factSearch the tax regulations for “specific sources”.Fact - Section 861 is the only section that can prescribe the "specific sources" for anything.

Coincidence? ... Again? ... OK.


Question Which section specifies "how to determine taxable income"?

Search for - how to determine taxable income

Income Tax fact Fact - Only Sec. 861 can specify to a code follower, human or computer, "how to determine taxable income".

* Note: Tax law consists of thousands of sections, but only one section provides this critical & specific instruction.

Of course, anything is possible and this is probably just another coincidence. Right? ... OK



Question Which sections prescribe "excluded income"?

Search for - excluded income

Income Tax fact Fact - Sec. 861 is the first section in all of tax law to mention "excluded income".

Still, a coincidence? ... Excluded income? ... OK



Question Which sections specify "eliminated income"?

Search for - eliminated income

Income Tax fact Fact - Sec. 861 is the only section having "eliminated income".



Question Which sections specify the "eliminated items"?

Search for - eliminated items

Income Tax fact Fact - "eliminated items" are only found in Sec. 861.

Another coincidence? ... OK



Question Where is "Exempt income" legally defined?

Income Tax fact Fact - "Exempt income" is legally defined (codified, this means exclusively) in Sec. 861.

At which point will all of these coincidences become a fact? Section 861 is the law.


Boolean Search



Now use the Boolean search function (found on GPO left-side menu) to determine which section numbers contain specific codes. A Boolean search can use AND/OR which allows us to confirm, or eliminate ANY possible condition, instruction, or section that is written... Something like using triangulation to locate a position.

Triangulate the code

Pick a target and zero in -

Question Where does "taxable income" meet or separate from "excluded income"?

Why? Because everything has a scope. Find every section that has taxable income AND excluded income, because somewhere there is a place where a difference occurs. These two items, taxable income and excluded income, share a boundary, a border. This provides for their definitions. Like property and property lines, these two incomes must separate at some point, each has a scope. It is not difficult to find their exact point of separation.

Don't believe everything you hear. Search the tax code yourself...

Search for -
taxable income  AND  excluded income

Income Tax fact Fact - Taxable income and excluded income separate, or meet, in Sec. 861-8T, exactly between paragraphs (d)(2)(ii) and (d)(2)(iii). Thus, the difference between taxable and excluded is prescribed exactly in section 861-8T.


Tax Professionals?

Question It's worth asking again, Which section defines "Exempt income"?

Search for - exempt income  AND  defined

Income Tax fact Fact: Exempt income is "defined" in just one section of law, just prior to the list of taxable items...

Exempt income defined, and Taxable income listed.Sec. 861-8T(d)(2)(ii) - Exempt Income
"Exempt income ... means any income that is ... exempt, excluded, or eliminated"

Sec. 861-8T(d)(2)(iii) - Taxable Income
"Income that is not...exempt" [taxable income]

This result is precise.

Don't believe it? The result can be verified with several "code-words", so ...


Sec. 861 is the law. Pick a target and zero in.

From the GPO's eCFR >> Click on Boolean >> Enter Title 26

Income Tax fact Fact: The following subjects are prescribed (codified) in section 861. (Frivolous? Think of the odds.)

Search for:

  1. federal income tax AND excluded income

  2. income tax AND eliminated income

  3. federal tax AND exempt income

  4. deductions AND excluded income

  5. united states trade AND excluded income

  6. business AND excluded income

  7. individual AND excluded income

  8. expenses AND eliminated income

  9. taxable income AND specific guidance

  10. exempt income AND eliminated income AND excluded income

  11. rules AND deductions AND expenses

  12. sections AND deductions AND expenses

  13. items AND taxable income AND excluded income

  14. sources AND taxable income AND/OR excluded income

  15. rules AND taxable income AND excluded income

  16. allocating deductions AND gross income

  17. adding AND taxable income OR excluded income

  18. subtracting AND taxable income OR excluded income

  19. computation AND taxable income OR excluded income

  20. statutory AND taxable income AND excluded income (referring to statutes, since we are currently searching regulations)

  21. gross income AND taxable income AND excluded income

  22. gross income AND taxable income OR excluded income

  23. apportion AND taxable income OR excluded income

  24. allocation AND taxable income OR excluded income

  25. items AND gross income AND excluded income

  26. items AND gross income AND enumerated (Notice, Sec. 61-1 mentions gross income only nine times, but Sec. 861-8 mentions it over 200 times. So, which section provides more "specific treatment"?)

  27. items AND gross income AND section 61 (Which is more specific? Sec. 61 or 861?)

  28. allocating AND sources AND taxable income (4)

  29. allocating AND sources AND gross income (4)

  30. allocating AND items AND gross income (3)

  31. etc, etc, ...

Result: What the $#&#@^#!? -

Section 861 is the law. Sec. 861 is not frivolous. It's digitally-precise fact.


* Exempt, Excluded, Eliminated
In case you missed it, excluded income and eliminated income were used in these searches because "exempt income" is defined as "any income that is, in whole or in part, exempt, excluded, or eliminated for federal income tax purposes." [26 CFR Sec. 861-8T(d)(2)(ii)]


There's more...



Tax 'experts'?
How did you code your tax software without following the code from the CFR and USC?

Ask them ... Where is “exempt income” legally defined?  100% Accuracy? (Ba Ha!) Where is “exempt income” legally defined?


Tax Experts? Not according to the Code -  100% Accuracy? (Ba Ha!) Where is “exempt income” legally defined?

Ask them ... Where is “exempt income” legally defined?  Ask them ... Where is “exempt income” legally defined?

What is the source of your "deductions", and "excluded income"?

You can't all be ignorant. How many of you take part?

The jig is up.



Ignorantia juris non excusat
("Ignorance of the law is no excuse")


Judges, IRS, Senators, and Congressmen: If ignorance is not acceptable, what is your excuse?

All Titles of law can easily be data mined, to find the facts.



... or ObviOus?

Taxable, gross, or excluded income; try to find a regulation that is more specific than section 861.

(Think of probabilities and statistics)

Judges, IRS, Senators, and Congressmen, say "861 is frivolous," but 'Ladies and Gentlemen,' you're lying. Your own code reveals you as frauds.

Explain yourselves

The Politician - by Red Skelton
The Politician
by Red Skelton

All of these are
located in Sec. 861

(Title 26)

Confirm it with your own computer. All Codes point to Sec. 861 -

Proximity Search


Now try the GPO's Proximity Search, which can locate your "code-words" within so many characters of each other. This shows the code-words that might be used together to form a sentence (as in a rule or command). Click on Proximity Search >> Enter Title 26 >> Search for

(Use default settings, within 80 characters)

  1. excluded income NEAR gross income

  2. excluded income NEAR items

  3. income NEAR not NEAR tax exempt (i.e. income that is taxable)

  4. items NEAR not NEAR tax exempt (i.e. items that are taxable)

  5. income NEAR eliminated NEAR for federal income tax purposes

  6. rules NEAR deductions NEAR taxable income

  7. rules NEAR for NEAR determining taxable income

  8. taxable NEAR specific NEAR sources

  9. taxable NEAR specific NEAR activities

  10. exempt income NEAR means

  11. exempt income NEAR defined

  12. tax exempt NEAR income

  13. not NEAR tax exempt NEAR income

  14. statutory NEAR taxable income

  15. allocating deductions NEAR gross income

  16. allocating NEAR gross income

  17. allocation NEAR excluded income

  18. allocation NEAR taxable income

  19. allocation NEAR exemptions, within 120 characters

  20. statutory NEAR excluded income, within 120 characters

  21. taxable income NEAR for all purposes, within 120 chars

  22. etc, etc,...

Result: Sec. 861

There are dozens of such code-terms, or combinations, where the results only come from Sec. 861.

According to Sec. 61, in the Code of Federal Regulations...

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 [CFR Sec. 61-1(b)]

Income Tax fact Fact: There is no other section of the Code, or regulations, that is more specific than 861.

Try searching for your own terms after you've written down several that you believe are accurate, or reasonable.




Simple Search



Now try GPO's Simple Search. Click on the eCFR's Simple Search >> enter Title 26 >> search for:

  • how to determine taxable income

Result: Only Sec. 861 prescribes "how to determine taxable income".



Now, search for:

  • income that is exempt or excluded

Result: Only Sec. 861 prescribes "income that is exempt or excluded".


See if there is any income which has been eliminated for federal income tax purposes.

Search for:

  • eliminated income

Result: Only Sec. 861 prescribes which income is "eliminated income".

Among millions of words of legal mumbo jumbo, the required topics are prescribed in Sec. 861. Section 861 isn't frivolous.

There are many more.

Here are a few eCFR search examples that were saved:

Whether it's taxable, gross, excluded, deductions, expenses, trade, business, individual, eliminated items, or ... the rules for determining any of these, section 861 is the result.


How many times must we see section 861 before rejecting the 'coincidence'? Oh... is that you?

Here are some more results, and more, or these, or these, or try any subject (code-term) that you wish.

Income Tax fact Fact: Only Sec. 861 defines "exempt income", and only Sec. 861 has the list of taxable income ("income that is not ... exempt").

VIDEO: What is Taxed - Data mining tax code Is searching difficult? Watch these short five-minute videos



Death & Taxes? ... Or, just common-sense?

To see that tax regulations and statutes concur, look at this search result from the Internal Revenue Code, 26 USC.

Source: GPO
(Hint: Right-click link, then Open in New Window)

Search for...

  • "income from sources within the united states"

Result: Section 861.

Notice how many of those results are for aliens and foriegn corporations.

Newsweek Magazine, Oct. 13, 1997 - IRS, Lawless, Abusive, and Out of Control
Taxpayer horror stories
Newsweek Oct. 13, 1997


Want to see more? Who is taxed?

The code really does limit who is taxed.

The tax code is specific. That's the way code is. And, the instructions provided by "the rules [of Sec. 861] for determining taxable income" are clear. According to statutes, and regulations, not all sources, or items of income are taxable for every individual.


Any 'expert' can show you that taxes come from "whatever source" [Sec. 61] ...

But, that's true only for...

  • "Gross income"
  • "...unless excluded"
  • ...and notice, "more common items...are...excluded from gross income entirely" - Sec. 61(b)

Simple Questions for 'tax professionals' and 'experts'

  1. Is the tax imposed upon "taxable income" or "gross income"?
  2. Is the purpose of tax rules to tell users "how to determine tax" and to "list" what is taxed?
  3. What is "excluded income"?
  4. What is "eliminated income" and in which section does it exclusively occur?
  5. In which section is "exempt income" defined?
  6. Where is the law for the "allocation and apportionment of deductions"?
  7. What are the rules for the "allocation and apportionment of expenses"?
  8. Which "common items" are "excluded from gross income entirely"?
  9. Is "expressio unius est exclusio alterius" a principle in statutory construction, and considered a 'common-sense canon'? ... How about "lex specialis derogat legi generali", which says that specific language controls over the general language?
  10. Can people still be called experts, or tax 'professionals,' without knowing the fundamentals of their craft?

More common items and the unCommon items are in the code, but the 'code' is not ambiguous. Code is always precise. Indeed, many machines, including jets, space shuttles, missles, air conditioners, heaters, power plants, etc, ... (many systems), even economic empires, would crash, if code was not precise.

The income tax really does have a limited scope, it is prescribed in the tax regulations. The Code actually prescribes - who, where, when, what, and how. Just follow the instructions in the Code of Federal Regulations, Title 26, step by step, as written, to see what your own "computation of taxable income" produces. Despite what previous court cases, judges, or the IRS may tell you, some things are not frivolous.

People lie, but code cannot.


By searching with your own computer, you can view only the specific instructions provided by law, those which have a specific command and a definite action to be performed. You can filter through the many vague, repetitive, and misleading general statements, which command nothing definite (often using words like, "if any", or "unless excluded") and quickly find the specific instructions for each subject. You can even ignore all of the numbering of the sections, the table of contents, the titles, references to references, the other cross references, and even the index.

See what the commands actually require you to do, with no uncertainties, no unless this or that, ... No ifs, ands, or buts.

Read carefully what's behind the following...

"the sources of income for purposes of the income tax" : (1 file) Sec. 861-1

"how to determine taxable income": (1 file): Sec. 861-8

"specific sources": (1 file) Sec. 861-8

"eliminated income": (2 files) Sec. 861-8 and 861-8T

"income that is exempt": Sec. 861-8T

"income that is not considered tax exempt": i.e. income that is taxable. (1 file) Sec. 861-8T (The List... which is the whole purpose of a tax rulebook. "The following items are not considered to be exempt." Because they are taxable.)

Dozens of similar terms (with 1 file found) produce the same section, 861. See the Search Results. According to the instructions in the Code of Federal Regulations, the U.S. income tax has been misrepresented and is more accurately 98% fraud, a lie, and color of law.

Are we being abused? It appears we are slaves, forced to give up to 1/3 or more of our lifes work, rules or no rules.

"The essence of Government is power; and power, lodged as it must be in human hands, will ever be liable to abuse."
-- James Madison, Speech at Virginia Constitutional Convention, Dec. 1, 1829

Sec. 861 is the only section that actually states it has "the rules" which "apply in determining taxable income... from specific sources... under other sections of the Code". Section 861 is the law.Look ...

"The rules contained in this section apply in determining taxable income of the taxpayer from specific sources and activities under other sections of the Code..." [26 CFR 1.861-8]

No other section, page, or sentence in the CFR claims to contain "the rules" that "apply". When "the rules" are applied, the amount of tax due for most people is nothing.

Don't believe us, just download the tax regulations (the tax rulebook) and statutes. Read what they clearly say. Unlike some books, the U.S. Tax Rulebook is not open to interpretation. The Code of Federal Regulations is specific, as is all code, hence the name, code.

There is no need to read millions of words. It's the computer age, take advantage of it. See 'How to Search', or visit the eCFR and USC to use the Government's own search engines.


What is Taxed






The scope of the US Income Tax includes only two things...
  1. Foreign earned income (of citizens and corporations) - whatever source
  2. Foreigners - whatever source

Are you a foreigner? Do you make foreign earned income? The entire U.S. Federal Income Tax applies only for these two conditions [assuming Title 26 applies at all].

For a quick example of how data mining works, watch the short 5-minute videos. For a quick read, see the Legal Definitions, Diagram, In a Nutshell, Summary , Search Examples , Short Tour or A Visual.

To learn more, see the Search Results and the Analysis.

See How to Search then download your own copies of the tax laws and rules below.

Verify for yourself the exact list of sources (and items) of taxable income, and "excluded income".

Did you know... you will work approximately 7 to 20 years solely to pay income tax?
That doesn't include the 100+ other taxes you pay.


Source Downloads

United States Code (26 USC)

Code of Federal Regulations (26 CFR)
~28MB ~350MB with Acrobat PDF files.

Search Regulations:
Electronic Code of Federal Regulations (eCFR)

Sources: US Government Printing Office (GPO).

Warning: The GPO doesn't make downloading the regulations easy, see 'How to Search' to be sure you get all the rules, or just rely on what the eCFR tells you, their results match well.

Alternate Source:

Browse and Download CFR Repaired EditionCode of Federal Regulations: Repaired Edition
Source: Copied and compiled from US Government Printing Office (GPO)

The official online versions of the Code of Federal Regulations, found on the Government Printing Office (GPO) website, are incomplete with missing files & broken links (at least prior to 2004). The TEXT edition, available here, was compiled from the GPO, but has broken links repaired. (The GPO uses the same repair technique, however less completely.)

See How to Search.

You are responsible for determining your taxes. Learn the law. Only a computer and Internet access are required to verify the income tax is a scam. Download 26-CFR (the rules) and 26-USC (statutes) to your computer to conduct your own research. Investigate.


Alternate Source Download

CFR Repaired Edition

Best option. The work is already done.

(Compare with eCFR)



The search techniques used here can help you find whatever you are looking for, in any large work of text - bibles, company rules, online books, statutes, code, whatever. And, if it's codified and digital, the answers are quickly yours.


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.