rulemylife
Posts: 14614
Joined: 8/23/2004 Status: offline
|
quote:
ORIGINAL: MeenMrMustard You're trying to pass the Code off as plain English??? Any credibility you may have had left with casual observers just went down the toilet with that idiotic statement. The Code is a syntax shell game, intentionally designed to overwhelm, obfuscate, and deceive. You either already know this and are a government shill, or you're an even bigger dupe than I originally thought. Here's "from whatever source derived" all broken down for you: http://www.synapticsparks.info/evidence/c02/allinc.html Well, I suggest you take the author's advice from your article. Then when Bubba, your 6'8" 300 lb. cellmate, decides you have a "purty" mouth you'll have plenty of time to reflect on who was duped. Research Tax Protestor Claims United States Source Income is Not Taxable The first cousin to the above argument is a variation based upon section 861 of the code. This argument has been in vogue for the past several years and like the others, has led to a great many problems for those victimized by the scam. Section 861 falls under subchapter N of the tax code, which deals with the income tax liability placed on foreign and non-foreign source income. A simple summary is that the code section explains and defines the income that is and is not subject to United States tax laws. The code section is pointed at foreign corporations with both foreign and US source income. Certain promoters have somehow gotten it into their heads that section 861 operates to exclude U.S. source wage income from taxation; that income from sources within the United States is taxed only to nonresident aliens and foreign corporations. These promoters claim that if a U.S. citizen earns income from a source within the United States, that income is not subject to taxation. The conclusion is that you have no duty to file a tax return or pay taxes on your U.S. source income. The Tax Court has rejected this argument since its inception. In one of the first cases to reach the court, Aiello v. Commissioner, T.C. Memo 1995-40 (1995), the Tax Court rejected the argument as "frivolous." Aiello, a craps dealer at a Las Vegas casino, argued that because he was a U.S. citizen with income from a source within the United States, his income was not subject to income tax. The Court stated: Section 61(a) defines gross income generally as "all income from whatever source derived," including, but not limited to, compensation for services and interest. Sec. 61(a)(1), (4). Section 63 defines and explains the computation of "taxable income." Section 1 imposes an income tax on the taxable income of every individual who is a citizen or resident of the United States. Sec. 1.1-1(a)(1), Income Tax Regs.; see Habersham-Bey v. Commissioner, 78 T.C. 304, 309 (1982). The Tax Court upheld the IRS’ tax liability determination and imposed penalties for failure to file and failure to pay, stating that Aiello "offered no plausible explanation for his failure to file." Yeah…Mr. Taxman Actor and martial arts expert Wesley Snipes finally began serving his three-year prison sentence for tax evasion. Snipes’ problems began when he aligned himself with a group of “folk lawyers”(like jailhouse lawyers, only not in jail) who began in the 1990′s to espouse the view that under section 861 of the Internal Revenue Code, United States citizens were only required to pay taxes on income related to international trade and commerce or income earned off-shore in US possessions, but not on income earned in the United States. This odd tax dodge has been referred to by leading proponents such as Larken Rose, as the “tax section the IRS hopes you never read” and by others as an “idiot law argument”. Mr. Rose is a self-described anarchist who completed a prison sentence in 2006 after his 861 defence was tossed out of court. Other 861 followers have advanced companion legal arguments such as the one used by James Molen when he attempted to persuade a Court during his 861 tax trial that if the names of the litigants in a court action were typed in capital letters, the charges were invalid since the upper case letters described a new legal entity and not the defendant. Molen lost both arguments. Snipes and two others unsuccessfully relied on section 861 to defend against charges including conspiracy to defraud the United States, failing to file tax returns and filing fraudulent tax returns. Snipe’s main argument was that he was scammed by his two co-accused who apparently convinced him their tax theories were legitimate. His co-accused, an accountant and an anti-tax crusader, were found guilty of conspiracy and fraud and sentenced to ten years and four years . Snipes was acquitted of the most serious conspiracy and fraud charges but found guilty of failing to file an income tax return.
|