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If you use MS Windows, you will get these results.
Or just search at ecfr.gpoaccess.gov
(Right-click, Open in New Window)
| The first rule
says,
"The tax imposed is upon taxable income"
(1 file found): Sec. 1.
So we find
"the rules... for determining taxable income"
(1 file found): Sec. 863. [This can be seen by finding "determining
taxable income"]
Sec. 863 says "the rules" are found in Sec. 861.
This must be true, because it's the only section in the Code
of Federal Regulations (CFR) with the instructions for
"how
to determine taxable income" (1 file found): Sec.
861.
Sec. 861 is the only section telling us:
"the sources of income for purposes of the income
tax" (1 file found): Sec. 861.
Sec. 861 is also the only section with all the following
terms. And, all of the terms occur in just one (1) paragraph:
"specific", "guidance", "rules", "taxable", "income",
"apply", "how to", "taxable income" (1 file found): Sec.
861. [Requires a tool, such as WinMerge. Or, find up to three
terms at a time by using the boolean search at ecfr.gpoaccess.gov
]
Only one (1) section in the CFR prescribes
"taxable income from sources within the United
States shall consist of " (1 file found): Sec.
861.
"The rules" tell us the taxable income by using
two lists.
The first list we are pointed to prescribes the "specific
sources", and "sections of the Code which require
the determination of taxable income" (1 file found): Sec.
861. No other "sections" "require" this determination.
It's here that we notice some of our income is not even a part
of gross income:
"the following rules shall apply to... income
that is exempt" (1 file found): Sec. 861.
The second list tells us the specific items of income which
are taxable, in a paragraph titled
"Income that is not considered tax exempt"
[i.e. "Income that is taxable"] (1 file found): Sec. 861.
Only Sec. 861 gives rules for determining taxable income and
excluded income.
"determining taxable income" and "excluded income"
(1 file found): Sec. 861. In general, wouldn't finding one of
these also determine the other?
These rules, and many more, agree, only the "more
common items" from sources outside the United States,
are taxable income for a US citizen. According to the code,
it's one item, "foreign earned income".
We can be certain we are looking at the correct rules, because
"The rules contained in this section apply in
determining taxable income of the taxpayer" (1 file found):
Sec. 861. No other section in the tax regulations claims to
have these rules.
We can be even more certain, because only one paragraph in
the CFR contains all three terms:
"rules" and "prescribing" and "taxable income"
(2 file(s) found): Sec. 861.
And only one section contains both of these terms:
"prescribing" and "excluded income" (1 file
found): Sec. 861.
According to these two code-terms, section 861 is the section
which covers
"items" and "excluded income" (3 file(s)
found): Sec. 861 and 861-8T.
And, according to these two code-terms, section 861 is the
section regarding
"sources" and "excluded income" (5 file(s)
found): Sec. 861 and 861-8T.
The same applies to the sections of the CFR...
"sections" and "excluded income" (5 file(s)
found): Sec. 861 and 861-8T.
Even more impressive, Sec. 861 is the only section telling
us
"how to determine tax" (1 file found): Sec.
861. [See it now, at ecfr.gpoaccess.gov
Include an asterisk, e.g. how to determine tax* ]
Use any words you wish to ask "how to determine tax."
You can try to "add" or "figure" your tax.
Or, try to "calculate" or make a "computation."
You can even try "totaling" or "determining"
your tax. Try any action word you want upon tax, but
section 861 will be the final result, or the obvious section
to apply. You will soon see that the items and sources
of income of most Americans are excluded from taxation, according
to code.
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The fact is, anyone can confirm exactly who, where, and what
"the rules" do cover, simply by reading about the scope. Logically,
we could also look up the list of "sections of the Code
which require the determination of taxable income", or
even the list of "Income that is not considered tax exempt",
to see exactly whose income is listed.
We can come to the same conclusion starting from many different
points within the regs (and statutes), but there is only one
reasonable conclusion: Most US citizens do not have any
taxable income.
Are we being scammed by politicians
and public servants?
Why aren't the vital instructions,
and rules, for "taxable income", "excluded
income", or even something as simple as, "how
to determine taxable income," not found up front,
in section 1 or 2, or at least the top 10 sections?
Only one section has the "rules"
for both "determining taxable income"
and "excluded income", which is logical
because at some point, finding one determines the other.
Why is this essential information placed
thousands of pages later, in section 861?
Why do the rules say something other
than what we have been led to believe?
"Unless excluded",
right? But, only seven (7) files even mention "excluded
income". Only one section provides "specific
guidance", by "prescribing rules",
and lists "specific sources", and "determining
taxable income of the taxpayer", and there are
many more.
Why should it require a computer to
search through all of the text within the tax regulations,
just to find out, what is taxable income, and what is
excluded? How hard does it have to be? Is this because
of the irresponsibility of the Treasury, or just plain
fraud? |
Scammed by public servants? Politicians? |
Fortunately, unlike many books, the code in
the tax rulebook is not open to interpretation. As with computer
instructions, it either compiles or it doesn't. Objects are
declared, conditions exist, and actions occur. Specific instructions
are coded for us to follow. And, the instructions are
written only once, and thus, cannot be confused. Our conclusion
can be confirmed, absolutely, with a computer. According to
code, only "foreign earned income" is taxable for
U.S. citizens. Do you have any? |
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"rules":
(2557 file(s) found)
"taxable income": (817 file(s) found)
"prescribing": (15 file(s) found)
"excluded income": (7 file(s) found)
|
"rules" and
"prescribing" and "taxable income" (2 files)
"rules" and "prescribing" and "excluded
income" (1 file)
- Sec. 861 |
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"the
rules": (1338 file(s) found)
"taxable income": (817 file(s) found)
"determining tax": (49 file(s) found) |
Within millions of words, this prescription occurs
just once
"the rules... for determining taxable income"
(1 file found): Sec. 863
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Compare a dozen terms,
indicating how to determine taxable income to the rule
currently used and ask yourself, which rules are more clear, accurate,
and specific? Read what courts have said about being specific.
| Don't be distracted
with the idea that if we didn't have income taxes, we
couldn't have our government services. First, that is a completely
separate issue from following the rules already written. Second,
as early as the 1980s, our President, Ronald Reagan, along with
sources like Paul Harvey News, were telling us that none of our
income taxes are used to pay for our social services.
"100% of what is collected is absorbed solely by interest on the
Federal Debt ... all individual income tax revenues are gone before
one nickel is spent on the services taxpayers expect from government"
-- Grace
Commission report (PPSS) submitted to President Ronald Reagan
on January 15, 1984 (wiki)
There are numerous other taxes to
pay for our government services. Income taxes are used
to pay for other things...
"Money is a new form of slavery, and distinguishable from the old
simply by the fact that it is impersonal -- that there is no human
relation between master and slave."
-- Leo Tolstoy
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For computing income taxes, the ideal condition
occurs when we have found every deduction, and exempt or excluded
income. Finding such code-words is easily done with a computer.
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Attention Researchers
If any link has disappeared, try to copy and
paste the link address at http://www.archive.org
-- DISCLAIMER --
* The intended purpose of this website is
to data mine on 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 that these search methods can 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.
There is nothing for sale at WhatisTaxed.com.
Information posted at WhatisTaxed.com is not intended to be
and should not be considered as legal advice, it is posted solely
for educational purposes. The reader should not rely on information
provided herein to determine tax, even if you see that it is
written in the law, and believe it to be accurate. (Those who
go against, or simply question, the US government, even if those
who are questioning are, or were, themselves government agents
or employees, regardless of their beliefs, risk
prison time, a bad
reputation, or worse.
Those who speak truth to power have always paid heavily for
doing so.)
Do Not accept this website as tax advice, it is tax research
and copyright-free (copyleft
whatistaxed.com). To contribute research, see How to Search and
Contact Us.
We Do Not sell, promote, or advise anything,
except the data-mining and reading of tax code with an appropriate
code-tool, a computer.
We Do ensure that we find every occurrence of
a particular code-term, to establish precisely what is written,
and what is not written in the law. When we say no
other rule or statutes exists - for example, regarding excluded
income, we show you how many files contain this term and
how we searched for it with a computer. You can confirm ANY
of the laws, rules, and terms yourself, and you should because
it is your duty to know and follow the law.
You are
responsible for doing your own taxes.
Questions: If you have questions, try asking
your Congressperson or Senator.
Have your lawmaker explain these search results ...
- "eliminated income" - Sec. 1.861-8(d), 1.861-8(d)(2),
1.861-8T(d)(2)
- "eliminated items" - Sec. 1.861-8T(d)
- "excluded income" - Sec. 1.861-8 and 1.861-8T
- "income that is exempt or excluded" - Sec. 1.861-8T(d)(2)
- "specific sources" - Sec. 1.861-8(a)(1)
- "specific guidance" - Sec. 1.861-8(a)(1)
- "how to determine taxable income" - Sec. 1.861-8(a)(1)
- "the rules [of Sec. 1.861-8 ...] for determining taxable
income" - Sec. 1.863-1(c)
- "income that is not considered tax exempt" [taxable
income] - Sec. 1.861-8T(d)(2)(iii)
Have them explain ...
- Why are such specific instructions, which are located almost
exclusively in Sec. 861, frivolous?
- If lawmakers are going to give the Treasury Secretary
power ("under regulations prescribed by the Secretary"
- 26 USC 863), to create laws for items of income
and deductions, then why is most of the CFR code valid, but
not Sec. 861 code?
- What other definition of "exempt income" is there?
According to code, there is only one, defined in Sec. 1.861-8T(d)(2)(ii).
And, it's followed immediately by the list of income that
is not exempt (i.e. taxable).
Find your Congressperson: http://www.house.gov
Find your Senator: http://www.senate.gov
Answers: If you want answers, you can try
asking the press, the American
media and foreign
media.
* TheCode of Federal Regulations:
When searching, we pay close attention to the rules in 26 CFR,
because the law (USC) gives authority to the CFR (regulations).
Both the USC and CFR confirm this authority [easily find this
authorization with your computer].
"the Federal Income Tax Regulations
(Regs) are the official Treasury Department interpretation of
the Internal Revenue Code" (Internal Revenue Manual,
4.10.7.2.3.1).
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, 4.10.7.2.3.4).
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.
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protected by copyright and/or trademark. We believe their use
qualifies as fair
use under United States copyright law.
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