Posted by John on November 09, 1997 at 10:40:30:
Section 61 of the code describes the ITEMS of Gross Income that are derived from WHATEVER SOURCE.However has one ever questioned what Whatever Source meant. I know I never gave it much thought. Then it dawned on me after finding the website www.taxgate.com that the whole taxing scheme is based on Gross Income. If you have it you pay taxes. If you don't have any you don't qualify. But how many of us have ever determined if we ever really had Gross Income. To have it you need to get it from a Source that renders it or you don't have it. Code section 861 et seq. and more importantly the regs at 1.861-8 et seq. state the "Specific" sources this income has to come from to be considered Taxable Income. If none of your income has ever come from the listed "Specific" sources known as "operative" sections them you just don't have any Gross Income to pay taxes on. Interestingly enough the "Specific" sources are all related to Foreign Income, Federal Employment, or Nonresidents with U.S. Source Income. Check it out.
Post a Followup