Wednesday, October 3, 2007

6 Questions Regarding Determining Taxable Income

1) Should I use the rules found in 26 USC § 861(b) and 26 CFR § 1.861-8 (in addition to any other pertinent sections) to determine my taxable domestic income?

2) If I should not use those sections to determine my taxable domestic income, please show where the law says who should or should not use those sections for that.

3) If I, as a U.S. citizen, receive all of my income from working within the 50 states, do 26 USC § 861(b) and 26 CFR § 1.861-8 show my income to be taxable?

4) Should I use 26 CFR § 1.861-8T(d)(2) to determine whether my “items” of income (e.g. compensation, interest, rents, dividends, etc.) are excluded for federal income tax purposes?

5) What is the purpose of the list of non-exempt types of income found in 26 CFR § 1.861-8T(d)(2)(iii), and why is my domestically earned income not on that list?

6) What types of income (if any) are not exempted by any statute, but are nonetheless “excluded by law” (not subject to the income tax) because they are, under the Constitution, not taxable by the federal government?