LPC wrote:Let me put it a different way: What evidence do you have, in the form of statutes, regulations, or rulings, that section 61 of the Internal Revenue Code does NOT mean what it says when it defines "gross income" as ALL income from WHATEVER source derived?
The Sec. 61 definition you speak of is given here:
http://www.law.cornell.edu/uscode/26/61.html
(a) General definition
Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items: .....
I agree it means what it says, but what's it saying? It's certainly oddly written and it's not a definition of "income." It's a circular deceptive definition at best. Consider this:
"Except as otherwise provided in this subtitle, gross LPC means all LPC from whatever source derived,..."
It does not define "LPC." What is LPC? What is income?
“The general term ‘income’ is not defined in the Internal Revenue Code.” U.S. v. Ballard, 535 F.2d 400, 404 (8th Circuit, 1976) Wow, that's convenient, trying to hide something. We must look to the Revenue Acts themselves for the answer. And that's why I linked to Zuniga's 47-item list. Yes, they're his conclusions but, disregarding his first few status facts, it's a handy list of items/activities that are indeed
taxable income under the Revenue Acts of Congress. And oh looky, none of my income /activity is listed.
30...income from foreign oil and gas extraction (26 CFR §1.861-8(f)(1)(vi)(D)).
31...income from a domestic corporation that has an election in effect under 26 U.S.C. § 936 (Puerto Rico & possession tax credit). (26 CFR §1.861-8(f)(1)(vi)(E)
32...income from an insular possession of the United States. (See 26 CFR §§ 1.861-8(f)(1)(iv)(F)-(H); see also, definitions of “State”, “United States” & “citizen” at 26 CFR § 31.3121(e)-1 and “American employer” at § 31.3121(h)-1)
33...income from a China Trade Act corporation. (See 26 CFR § 1.861-8(f)(1)(vi)(I))
39...receive wages, remuneration, or other compensation as an officer or employee of an oceangoing vessel construed as an American employer. (See 26 CFR § 31.3121(f)-6)