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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


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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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The Short Tour

Search the statutes."Federal tax law begins with the Internal Revenue Code (IRC), enacted by Congress in Title 26 of the United States Code (26 U.S.C.).",,id=98137,00.html

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

Tax law begins with law Number One.

USC Sec. 1
"There is hereby imposed on the taxable income of [everyone] ... a tax"

Over 500 pages later...

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

And two sections before that...

USC Sec. 61
(a) "Except as otherwise provided ...gross income means all income from whatever source derived, including (but not limited to) the following items:..."
Obviously, some people have not read the tax rules. Before you open your big mouth, go to

Many people don't even read tax rules before protesting

"To rebel against a powerful political, economic, religious, or social establishment is very dangerous and very few people do it, except, perhaps, as part of a mob."
--Isaac Asimov

Question What is "otherwise provided"?

"Federal Income Tax Regulations (Regs) are the official Treasury Department interpretation of the Internal Revenue Code"
Internal Revenue Manual, -


Search tax regulations. Regulations are written to carry out statutes 26 United States Code

So now we examine the corresponding regulation to see if it explains what is "otherwise provided."
USC 61 = CFR 61

CFR Sec. 61(b)
"more common items... are included in or excluded from gross income entirely, or treated in some special manner. 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"

So, if another section of the Code or regulations provides "specific treatment for any item ... such other provision shall apply", in spite of Sec. 61 and it's claim to all income.

Income Tax fact As otherwise provided...

CFR Sec. 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 and, thus [are taxable], may have expenses, losses, or other deductions allocated and apportioned to them:
(A) In the case of a foreign taxpayer...
(B) the gross income of [international and foreign sales corporations]...
(C) the gross income of a possessions corporation ...
(D) Foreign earned income ...

Income not exempt = taxable income

Most Americans don't make foreign earned income.

How to search the Tax Code with a computer -

"None are more hopelessly enslaved than those who falsely believe they are free."
- Johann W. Von Goethe

Regulation 61 is correct, "more common items... are... excluded from gross income entirely".

Look carefully at the list of income not exempt. Are your items of income included, or have they been excluded from gross income entirely?

According to Principles of Statutory Construction, if a list does not include an item, it has been excluded purposefully, and is excluded from coverage or application of the law.

Search for ... "how to determine taxable income"
Search for "how to determine taxable income"

Source: Government Printing Office

Tax Rules must tell us What is Taxed, not what isn't taxed. Just as rules must explain how to determine the amount of tax we do owe, not the amount of tax we don't owe.


  1. There is a tax on taxable income.
  2. "In general... the term 'taxable income' means gross income minus the deductions..."
  3. "Except as otherwise provided... gross income means all income."
  4. [So, Except...] "more common items... are... excluded from gross income entirely."
  5. [And, Except... ] If "another section of Code or... Regulations... provides specific treatment for any item of income, such other provision shall apply notwithstanding [in spite of] section 61."
  6. [And, Except...] The list of "Income that is not considered tax exempt ...or excluded income" - what is taxed, does not include a citizens income when it is earned within the United States.
  7. According to well established principles of statutory construction, if an item is not included in a list, it has been excluded purposefully and is excluded from coverage or application.
Search the US tax regulations
Search for ...
• exlcuded income
• eliminated income
• eliminated items
• specific sources
• specific guidance

Only nonexempt income is required to be included in gross income...

Exempt income and nonexempt income. (1) As used in this section, the term class of exempt income means any class of income (whether or not any amount of income of such class is received or accrued) wholly exempt from the taxes imposed by Subtitle A of the Code. For purposes of this section, a class of income which is considered as wholly exempt from the taxes imposed by subtitle A includes any class of income which is:
(i) Wholly excluded from gross income under any provision of Subtitle A, or
(ii) Wholly exempt from the taxes imposed by Subtitle A under the provisions of any other law.
(2) As used in this section the term nonexempt income means any income which is required to be included in gross income.

Is taxation theft?
Is income tax theft?

Question "nonexempt income" ... Where?

Income Tax fact

"Income that is not considered tax exempt"
- 26 CFR 1.861-8T(d)(2)(iii) Search eCFR

“Deductions to excluded income” - 26 CFR 861Over the year, we accumulate what we hope is a tall pile of gross income. From this pile, we hope to shovel away as much of it as possible, in the form of deductions, because the remainder is taxable income. However, exempt income does not even require shoveling, because it is NOT part of gross income; it is tax exempt.

According to the list of items of "Income ... not ... exempt" (i.e. "Income That Is Taxable"), most Americans do not have any taxable income. They have been excluded from the list, "excluded by law."

"income that is not ... exempt" - Sec. 861-8T(d)(2)(iii) "Expressio unius est exclusio alterius" -

The reasonable conclusion is that only income gained from foreign sources is taxable income for a US citizen. Evidently, the U.S. Federal Income tax is a just scam (surprise, surprise) by politicians, bureaucrats, and bankers; the people who play both sides of every issue.

For more information see the Analysis

Tax class begins
Tax class begins
"Of all contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money."
-- Daniel Webster

In tax law, income is referred to as:

  • all income
  • any income
  • items of income
  • gross income
  • taxable income
  • exempt income
  • excluded income
  • eliminated income

  • ... & other terms of income.

But, the tax is "imposed on the taxable income" - 26 USC 1

According to 26 USC Sec. 7806(b)

"No inference, implication, or presumption of legislative construction shall be drawn or made by reason of the location or grouping of any particular section or provision or portion of this title, nor shall any table of contents, table of cross references, or similar outline, analysis, or descriptive matter relating to the contents of this title be given any legal effect."

Question Taxable or Gross? Where is the income tax prescribed?

26 USC Sec. 861
(a) Gross income from sources within United States
The following items of gross income shall be treated as income from sources within the United States:
  (1) Interest
  (2) Dividends
  (3) Personal services [...including Compensation for labor]
  (4) ...[etc]
  (5) ...[etc]
(b) Taxable income from sources within United States
From the items of gross income specified in subsection (a) as being income from sources within the United States there shall be deducted [ stuff ]...and other deductions properly apportioned or allocated thereto ...The remainder, if any, shall be included in full as taxable income from sources within the United States.

Question "if any"? ... Where are deductions?

26 USC Sec. 863
"Items of gross income... 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."

According to USC 863, items of gross income and deductions "shall be allocated ... under regulations prescribed by the Secretary."

So, we find the corresponding regulation to see what is prescribed.

USC 863 = CFR 863

under regulations

26 CFR 1.863-1
(c) Determination of taxable income. The taxpayer's taxable income from sources within or without the United States will be determined under the rules of Secs. 1.861-8 through 1.861-14T for determining taxable income from sources within the United States.
Your tall pile of gross income
Legal tender
"the privilege of creating and issuing money... is the government's greatest creative opportunity... [saving] the taxpayers immense sums of money [i.e. interest] ..."
-- Abraham Lincoln

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

So, the IRS must follow "the rules ... for determining taxable income".

"numbers appear in green"

Powerful men
"Federal Reserve notes... receive no backing by anything. This has been the case since 1933. The notes have no value... the... numbers appear in green."

i.e. It's all just a facade.

"Whosoever controls the volume of money in any country is absolute master of all industry and commerce... And when you realise that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate."
-- President James Garfield

(Your retirement fund didn't just evaporate in a bubble, it was stolen.)

Garfield was assassinated in 1881 within weeks after releasing this statement, during the first year of his Presidency. He died of blood poisoning on September 19, two months after he was shot.

Many who have fought the moneychangers lasted similar lengths of time, except Jesus who was dead within 3 days after throwing the bankers out of the temple.

"Federal Reserve Notes are not Dollars."
-- Russell Munk, Assistant General Counsel, Department of the Treasury


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.