I am not a Tax Lawyer, Nor do I play Dan Evans on the internet.
I am not a Certified Public Accountant, Nor do I play Paul Thomas on the internet.
I am not an Enrolled Agent, Nor do I play Richard Macdonald on the internet.
DO NOT TAKE MY WORD FOR ANYTHING ON THIS PAGE.
Go look it up for yourself.
The Section 861 Evidence you have just studied in this chapter is highly abridged. The regulation (1.861-8) that IS "the rules for determining taxable income" runs almost 21,000 words.
There is additional evidence that supports the end result you have just read.
For instance, there are further paths for Bill the burger flipper's income to travel through. Paths for his gross income through a "statutory grouping of gross income" or through a "residual grouping of gross income." If Bill the burger flipper is compensated for flipping burgers outside the United States, then IRC section 862 come into play. There are also the conditions when IRC section 863 come into play. I will cover this additional information in the 861 Appendix.
There is also the evidence from the prior incarnations of these taxing statutes and regulations that prove the same thing in much clearer language.
There is also 861 evidence to be found in how the IRS and the Federal government have chosen to respond to reasonable questions regarding section 861; And how the IRS and the Federal government have chosen to treat certain people who have raised these questions and have gotten "in their face" in raising these questions.
One final point to be made as we leave this chapter - If one does not have taxable income, one can NOT have a tax imposed. If one does not have a tax imposed, one is NOT "LIABLE" for an "income" tax. The "liability" for a tax comes into play for several other IRC sections of law.