IRS Form 1040 Instructions

I'm using the 2007 instructions for this page. I personally know the words are the same going back to 2002. You may download your own verification copy from the IRS dot gov website:

http://www.irs.gov/pub/irs-prior/i1040gi--2007.pdf 1.4 mb.

In that file, on page 18, you will find this paragraph:

"You must report unearned income" [...] "from sources outside the United States" [...]; and; "You must also report earned income" [...] "from sources outside the United States."

Did the writers of the 1040 instructions somehow just forget to tell us "You must report earned income" [...] "from sources INSIDE the United States"?

The instructions match perfectly with what the written words of section 861 and its regulations tell us. The 1040 instructions omit the same requirements the written words of section 861 and its regulations omit. Elsewhere in this website is a detailed examination of the evidence of section 861 and its regulations. Here is 861 Evidence in the Nutshell.

In the above linked 1040 instructions file, on page 6, you will find this chart showing who is required to file an IRS Form 1040:

The requirement to file an IRS Form 1040 is determined by having "gross income" over a specified amount. In determining that amount, this chart informs us that "Gross income means all income" [...] "that is not exempt from tax" [...]

• This sentence subtlely admits the undeniable fact that some types of "income" are exempt from tax.
• Income that is exempt from tax does not need to be included in "gross income" that is used to determe if you are required to file.
• No tax: no liability. Income that is exempt from tax is income that does not create a liability.

The instructions on this chart also match perfectly with what the written words of section 861 and its regulations tell us. As previously stated, Elsewhere in this website is a detailed examination of the evidence of section 861 and its regulations. 861 Evidence in the Nutshell

In the above linked 1040 instructions file, on page 83 in the "Disclosure, Privacy Act, and Paperwork Reduction Act Notice", you will find the following statement:

"Our legal right to ask for information is Internal Revenue Code sections 6001, 6011, and 6012(a), and their regulations. They say that you must file a return of statement with us for any tax you are liable for."

• The requirement to file a return or statement is in the logical format of: 

• Obverse logic provides that, If not A, then not B. 
• Therefore, If you are not liable for the (income) tax, then you are not required to file an (income tax) return.
• If no law can be found that makes you liable for any (income) tax, then no requirement can exist regarding the filing of an (income) tax form.

How do you know you are liable for any (income) tax if you have never looked at the law making you liable?

"Our legal right to ask for information is Internal Revenue Code sections 6001, 6011, and 6012(a), and their regulations. They say that you must file a return of statement with us for any tax you are liable for."

TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 61 - INFORMATION AND RETURNS
Subchapter A - Returns and Records
PART I - RECORDS, STATEMENTS, AND SPECIAL RETURNS

Sec. 6001. Notice or regulations requiring records, statements, and special returns

Every person liable for any tax imposed by this title, or for the collection thereof, shall keep such records, render such statements, make such returns, and comply with such rules and regulations as the Secretary may from time to time prescribe.

Whenever in the judgment of the Secretary it is necessary, he may require any person, by notice served upon such person or by regulations, to make such returns, render such statements, or keep such records, as the Secretary deems sufficient to show whether or not such person is liable for tax under this title.

Every person liable for any [income] tax imposed [...] shall [...] comply with the rules and regulations as the Secretary may from time to time prescribe.

• The requirement to comply with the income tax rules and regulations of the Secretary is based upon being liable for the income tax.
• If a person is not liable, 
• a person is not required to keep records,
• a person is not required to render statements,
• a person is not required to make such returns,
• a person is not required to comply with rules and regulations as the Secretary may prescribe.

The Secretary may require any person, "by notice" or "by regulations", to keep records and file returns "to show whether or not such person is liable for tax".

• You would know if you received notice from the Secretary of Treasury to keep records and make returns, therefore we need only concern ourselves with the regulations.
• The second paragraph conflicts with the first. 
• If you are not liable for the income tax, then you are not required to comply with the regulations that require you to make a return to prove you are not liable.

The solution to this paradox is found in the regulations. Here is what the Secretary's regulations say on this matter:

26 CFR section 31.6011 (a)-10   Instructions to forms may waive filing requirement in case of no liability tax returns.

Notwithstanding provisions in this part which require that a tax return be filed, the instructions to the form on which a return of tax is otherwise required by this part to be made may waive such requirement with respect to a particular class or classes of no liability tax returns. Returns in a class for which such requirement has been so waived need not be made.

• "The instructions to the form" [...] "may waive such requirement" to file a return when there is no liability.
• "Returns in a class for which such requirement has been so waived need not be made."
• The "Disclosure, Privacy Act, and Paperwork Reduction Act Notice" for the IRS Form 1040 states, "you must file a return of statement with us for any tax you are liable for."
• If A, then B. If not A, then not B. Obverse logic states, You are not required to file a return for an income tax that you are not liable for. This regulation confirms the point.

It should be noted that when you look to verify the above cited regulation, "Section 31.6011 (a)-10", you will not find it on all the government websites. It is only on certain ones. This begs the question, "Why is this regulation not shown on all the websites that show the regulations?"

"Our legal right to ask for information is Internal Revenue Code sections 6001, 6011, and 6012(a), and their regulations. They say that you must file a return of statement with us for any tax you are liable for."

TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 61 - INFORMATION AND RETURNS
Subchapter A - Returns and Records
PART II - TAX RETURNS OR STATEMENTS
Subpart A - General Requirement

Sec. 6011. General requirement of return, statement, or list

(a) General rule
When required by regulations prescribed by the Secretary any person made liable for any tax imposed by this title, or with respect to the collection thereof, shall make a return or statement according to the forms and regulations prescribed by the Secretary. Every person required to make a return or statement shall include therein the information required by such forms or regulations.

• This section does not apply unless the Secretary makes it apply by prescribing regulations. 
• This section does not apply unless a person is "made liable" for paying the income tax or unless a person is "made liable" for collecting the income tax.
• No word in a statute shall be superfluous. Legal citation of same.
• Therefore, the word "made" shall not be superfluous.
• Therefore, section 6011 only applies to a person "made" liable for collecting or paying the income tax.
• The only person "made" liable in regard to Subtitle A - Income taxes is a "withholding agent".The requirement of a "withholding agent" to deduct and withhold a tax dovetails neatly with the above referenced liability to collect or pay an income tax.
• Statutory definition of "withholding agent".
• The statute where subtitle A - income tax liability is imposed.
• Section 6011 would require the same as section 6001 if the word "made" were deleted from the section 6011. You can test this by rereading the statute and ignoring the word "made".
• In any case, If this section does apply, the instructions for the return and the regulations determine whether a return is required to be filed.
• As previously covered, a 1040 form is not required to be filed unless you are liable.

"Our legal right to ask for information is Internal Revenue Code sections 6001, 6011, and 6012(a), and their regulations. They say that you must file a return of statement with us for any tax you are liable for."

TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 61 - INFORMATION AND RETURNS
Subchapter A - Returns and Records
PART II - TAX RETURNS OR STATEMENTS
Subpart B - Income Tax Returns

Sec. 6012. Persons required to make returns of income

(a) General rule
Returns with respect to income taxes under subtitle A shall be made by the following:
(1)(A) Every individual having for the taxable year gross income which equals or exceeds the exemption amount, except that a return shall not be required of an individual - [The exceptions do not apply for the purposes of this webpage and thus are omitted]

Collecting "gross income" over a certain amount triggers the requirement to file a 1040 form.

• "Gross income" under the exemption amount is not taxable.
• An individual is not liable for a tax on "Gross income" under the exemption amount.
• If an individual does not collect "gross income" then there is no requirement to file a return.
• If an individual collects money that is not "gross income" then there is still no requirement to file a return.
• "Exempt income is any income that is, in whole or in part, exempt, excluded, or eliminated for federal income tax purposes."
  26CFR1.861-8T(d)(2)(ii)(A)
• Remember the who must file chart above informs us that "Gross income means all income" [...] "that is not exempt from tax" [...]
• Exempt income "eliminated for federal income tax purposes" is income that is eliminated as "gross income" for the purpose of determining if you must file.
• If an individual collects money that is "exempt income" then there is still no requirement to file a return.

The 861 Evidence, examined in detail elsewhere on this site, indicates that domestic compensation for labor is not "income" "for federal income tax purposes." Here is 861 Evidence in the Nutshell.

Return to where you left the U.S. Federal Income Tax page.