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U.S. Federal Income Tax

Subjugation by taxation


Table of Contents

Properly Promulgated Regulations...


        Properly Promulgated Regulations have the FULL FORCE and EFFECT of LAW.

Cornell Law School says:


1. Federal Regulations in General

    Introduction

    Federal Regulations are the primary means by which federal agencies exercise their statutory authority to carry out the federal government’s regulatory intentions. It is beyond the ability of Congress to develop expertise in all the many and varied areas subject to federal oversight. Instead, Congress enacts enabling laws that set parameters for action and agencies fill in the details of their enforcement and licensing duties by promulgating rules or regulations. [Rules and regulations are interchangeable terms.]  Agency rule making has occasionally been challenged as an unconstitutional delegation of legislative authority, but courts have upheld the agency system. TODAY REGULATIONS ARE CONSIDERED PRIMARY SOURCES OF LAW WITH THE FULL FORCE AND EFFECT OF LAW.
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Publication in the Federal Register is constructive notice to all persons affected by the regulations.

Although the Federal Register took care of notifying the government and people of changes and additions to federal regulations, the current regulations in force were not codified. Congress amended the Federal Register Act in 1937 to require codification and subject access to the regulations through publication in the Code of Federal Regulations (CFR). The first CFR was published in 1939.

The Administrative Procedures Act (APA) of 1946 set forth the process for making regulations. The APA required the publication in the Federal Register of all proposed rule changes and a period for public comment, allowing citizens greater accessibility and participation in the process.

2.   The Federal Register

What is it?

The Federal Register is the official publication where all proposed and final regulations having general applicability and legal effect must be published. The Federal Register includes not only the text of the proposed, new, or amended regulation, but also the agency’s explanation of why a new regulation or change to an existing regulation is needed, public comments on the proposal, and the agency’s responses.
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4. The Code of Federal Regulations

What is it?

The Code of Federal Regulations (CFR) is a codification of FINAL REGULATIONS NOW IN FORCE that have been published in the Federal Register by the agencies and departments of the federal government. The CFR provides a similar subject arrangement for regulations as the United States Code provides for public laws. The CFR and U.S. Code each have 50 Titles, but the titles are not directly correlated.

Cite


Indiana University School of Law says:


REGULATIONS IN GENERAL

Statutes and court decisions are primary sources of law familiar to most law library patrons. Administrative REGULATIONS may be less familiar to researchers, but THEY TOO CONSTITUTE A PRIMARY SOURCE.

While statutes are enacted by a legislature, regulations are issued by administrative agencies (e.g., the Federal Trade Commission), usually acting under delegated legislative authority.

The legislature will lay out general law and policy in the statute, and the administrative agency EFFECTS DETAILED IMPLEMENTATION of this law and policy THROUGH THE ISSUANCE OF RULES AND REGULATIONS.

Because REGULATIONS are generally BINDING ON ALL PERSONS and because they exist in many fields, it is often vitally important to locate relevant regulations as well as the more usual statutes and court decisions.

FEDERAL REGULATIONS

To be EFFECTIVE AS LAW, federal REGULATIONS must first be published in the Federal Register (F.R.), a daily newspaper which publishes proposed regulations, new regulations taking effect, notices, presidential documents, notices of Sunshine Act meetings, and related material.

Each year, the F.R. appears as hundreds of non-cumulating issues containing new regulations, amendments to existing regulations, and material that may repeal older regulations.

Therefore, most researchers will need access to a codified version of the currently-in-force regulations; that is, the Code of Federal Regulations (C.F.R.). Thus, in the area of regulations, the Federal Register and the Code of Federal Regulations relate to each other in the same manner as do the Statutes-at-Large and the U.S. Code in the area of legislation.

THE CODE OF FEDERAL REGULATIONS

The C.F.R. is divided into 50 titles (i.e., subjects), somewhat like (but not the same as) the 50 titles of the U.S. Code. Only one-quarter of the C.F.R. IS UPDATED in any quarter of the year...

Cite

[Code of Federal Regulations]
[Title 26, Volume 20]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR601.702]

[Page 114-137]

                       TITLE 26--INTERNAL REVENUE

    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
                               (CONTINUED)

PART 601_STATEMENT OF PROCEDURAL RULES--Table of Contents

                        Subpart G_Records (Note)

Sec. 601.702  Publication, public inspection, and specific requests for records.

(a) Publication in the Federal Register--
(1) Requirement.
(i) Subject to the application of the exemptions and exclusions described in the Freedom of Information Act, 5 U.S.C. 552(b) and (c), and subject to the limitations provided in paragraph (a)(2) of this section, the IRS is required under 5 U.S.C. 552(a)(1), to state separately and publish currently in the Federal Register for the guidance of the public the following information--

(C) Rules of procedure, descriptions of forms available or the places at which forms may be obtained, and instructions as to the scope and contents of all papers, reports, or examinations;

(D) Substantive rules of general applicability adopted as authorized by law, and statements of general policy or interpretations of general applicability formulated and adopted by the IRS; and

(E) Each amendment, revision, or repeal of matters referred to in paragraphs (a)(1)(i)(A) through (D) of this section.

(ii) Pursuant to the foregoing requirements, the Commissioner publishes in the Federal Register from time to time a statement, which is not codified in this chapter, on the organization and functions of the IRS, and such amendments as are needed to keep the statement on a current basis. In addition, there are published in the Federal Register the rules set forth in this part 601 (Statement of Procedural Rules), such as those in paragraph E of this section, relating to conference and practice requirements of the IRS; the regulations in part 301 of this chapter (Procedure and Administration Regulations); and the various substantive regulations under the Internal Revenue Code of 1986, such as the regulations in part 1 of this chapter (Income Tax Regulations), in part 20 of this chapter (Estate Tax Regulations), and in part 31 of this chapter (Employment Tax Regulations).

(2) Limitations--
(i) Incorporation by reference in the Federal Register. Matter which is reasonably available to the class of persons affected thereby, whether in a private or public publication, shall be deemed published in the Federal Register for purposes of paragraph (a)(1) of this section when it is incorporated by reference therein with the approval of the Director of the Office of the Federal Register. The matter which is incorporated by reference must be set forth in the private or public publication substantially in its entirety and not merely summarized or printed as a synopsis. Matter, the location and scope of which are familiar to only a few persons having a special working knowledge of the activities of the IRS, may not be incorporated in the Federal Register by reference. Matter may be incorporated by reference in the Federal Register only pursuant to the provisions of 5 U.S.C. 552(a)(1) and 1 CFR part 20.

(ii) Effect of failure to publish. Except to the extent that a person has actual and timely notice of the terms of any matter referred to in paragraph (a)(1) of this section which is required to be published in the Federal Register, such person is not required in any manner to resort to, or be adversely affected by, such matter if it is not so published or is not incorporated by reference therein pursuant to paragraph (a)(2)(i) of this section. Thus, for example, any such matter which imposes an obligation and which is not so published or incorporated by reference shall not adversely change or affect a person's rights.

        Conversely, if it is published in the Federal Register, it is notice to all persons that something is required of them.

TITLE 44 - PUBLIC PRINTING AND DOCUMENTS
CHAPTER 15 - FEDERAL REGISTER AND CODE OF FEDERAL REGULATIONS

Sec. 1501. Definitions

-STATUTE-
As used in this chapter, unless the context otherwise requires - ''document'' means a Presidential proclamation or Executive order and an order, REGULATION, RULE, certificate, code of fair competition, license, notice, or similar instrument, issued, prescribed, or promulgated by a Federal agency;

''Federal agency'' or ''agency'' means the President of the United States, or an executive department, independent board, establishment, bureau, agency, institution, commission, or separate office of the administrative branch of the Government of the United States but not the legislative or judicial branches of the Government;

''person'' means an individual, partnership, association, or corporation; and ''National Archives of the United States'' has the same meaning as in section 2901(11) of this title.

        DOCUMENT means REGULATION, RULE.

TITLE 44 - PUBLIC PRINTING AND DOCUMENTS
CHAPTER 15 - FEDERAL REGISTER AND CODE OF FEDERAL REGULATIONS

Sec. 1505. Documents to be published in Federal Register

-STATUTE-
(a) Proclamations and Executive Orders; Documents Having General Applicability and Legal Effect; Documents Required To Be Published by Congress. There shall be published in the Federal Register -

(1) Presidential proclamations and Executive orders, except those not having general applicability and legal effect or effective only against Federal agencies or persons in their capacity as officers, agents, or employees thereof;

(2) documents or classes of documents that the President may determine from time to time have general applicability and legal effect; and

(3) documents or classes of documents that may be required so to be published by Act of Congress.

For the purposes of this chapter every document or order which prescribes a penalty has general applicability and legal effect.

        DOCUMENT means REGULATION, RULE. Thus the above can be read as if it were written thus:

TITLE 44 - PUBLIC PRINTING AND DOCUMENTS
CHAPTER 15 - FEDERAL REGISTER AND CODE OF FEDERAL REGULATIONS

Sec. 1505. REGULATIONs to be published in Federal Register

(a) Proclamations and Executive Orders; REGULATIONs Having General Applicability and Legal Effect; REGULATIONs Required To Be Published by Congress. There shall be published in the Federal Register -
(1) Presidential proclamations and Executive orders, except those not having general applicability and legal effect or effective only against Federal agencies or persons in their capacity as officers, agents, or employees thereof;

(3) REGULATIONs or classes of REGULATIONs that may be required so to be published by Act of Congress.

For the purposes of this chapter every REGULATION or order which prescribes a penalty has general applicability and legal effect.

        The publication of a regulation in the Federal Register makes it binding with the full force and effect of law.

TITLE 44 - PUBLIC PRINTING AND DOCUMENTS
CHAPTER 15 - FEDERAL REGISTER AND CODE OF FEDERAL REGULATIONS

Sec. 1507. Filing document as constructive notice; publication in Federal Register as presumption of validity; judicial notice; citation

-STATUTE-
A document required by section 1505(a) of this title to be published in the Federal Register is not valid as against a person who has not had actual knowledge of it until the duplicate originals or certified copies of the document have been filed with the Office of the Federal Register and a copy made available for public inspection as provided by section 1503 of this title. Unless otherwise specifically provided by statute, filing of a document, required or authorized to be published by section 1505 of this title, except in cases where notice by publication is insufficient in law, is sufficient to give notice of the contents of the document to a person subject to or affected by it.  The publication in the Federal Register of a document creates a rebuttable presumption -

(1) that it was duly issued, prescribed, or promulgated;

(2) that it was filed with the Office of the Federal Register and made available for public inspection at the day and hour stated in the printed notation;

(3) that the copy contained in the Federal Register is a true copy of the original; and

(4) that all requirements of this chapter and the regulations prescribed under it relative to the document have been complied with.

The contents of the Federal Register shall be judicially noticed and without prejudice to any other mode of citation, may be cited by volume and page number.

        And again, because of the definition statute, the above could be read as if it were written thus:

TITLE 44 - PUBLIC PRINTING AND DOCUMENTS
CHAPTER 15 - FEDERAL REGISTER AND CODE OF FEDERAL REGULATIONS

Sec. 1507. Filing REGULATION as constructive notice; publication in Federal Register as presumption of validity; judicial notice; citation

A REGULATION required by section 1505(a) of this title to be published in the Federal Register is not valid as against a person who has not had actual knowledge of it until the duplicate originals or certified copies of the REGULATION have been filed with the Office of the Federal Register and a copy made available for public inspection as provided by section 1503 of this title. Unless otherwise specifically provided by statute, filing of a REGULATION, required or authorized to be published by section 1505 of this title, except in cases where notice by publication is insufficient in law, is sufficient to give notice of the contents of the REGULATION to a person subject to or affected by it.  The publication in the Federal Register of a REGULATION creates a rebuttable presumption -

        Once that regulation is printed in the federal register, I am REQUIRED to follow it AS IF IT WERE LAW

        Moving on to the currency and accuracy of the regulations...

TITLE 44 - PUBLIC PRINTING AND DOCUMENTS
CHAPTER 15 - FEDERAL REGISTER AND CODE OF FEDERAL REGULATIONS

Sec. 1510. Code of Federal Regulations

-STATUTE-
(a) The Administrative Committee of the Federal Register, with the approval of the President, may require, from time to time as it considers necessary, the preparation and publication in special or supplemental editions of the Federal Register of complete codifications of the documents of each agency of the Government having general applicability and legal effect, issued or promulgated by the agency by publication in the Federal Register or by filing with the Administrative Committee, and are relied upon by the agency as authority for, or are invoked or used by it in the discharge of, its activities or functions, and are in effect as to facts arising on or after dates specified by the Administrative Committee.

(b) A codification published under subsection (a) of this section shall be printed and bound in permanent form and shall be designated as the ''Code of Federal Regulations.'' The Administrative Committee shall regulate the binding of the printed codifications into separate books with a view to practical usefulness and economical manufacture.  Each book shall contain an explanation of its coverage and other aids to users that the Administrative Committee may require.  A general index to the entire Code of Federal Regulations shall be separately printed and bound.

(c) The Administrative Committee SHALL REGULATE THE supplementation and the collation and REPUBLICATION of the PRINTED CODIFICATIONS with a view to KEEPING the CODE of FEDERAL REGULATIONS as CURRENT AS PRACTICABLEEACH BOOK SHALL BE either supplemented or collated and REPUBLISHED AT LEAST ONCE EACH calendar YEAR.

(d) The Office of the Federal Register shall prepare and publish the codifications, supplements, collations, and indexes authorized by this section.

(e) The codified documents of the several agencies published in the supplemental edition of the Federal Register under this section, as amended by documents subsequently filed with the Office and published in the daily issues of the Federal Register shall be prima facie evidence of the text of the documents and of the fact  that they are in effect on and after the date of publication.

(f) The Administrative Committee shall prescribe, with the approval of the President, regulations for carrying out this section.

(g) This section does not require codification of the text of Presidential documents published and periodically compiled in supplements to Title 3 of the Code of Federal Regulations.

        Imagine that... The agencies are required to handle their promulgated CFR's once per year, and keep them up to date...

The regulations as promulgated, are specifically subject to Congressional review. And if Congress does not deal with them, they are considered.... Well, read the statute for yourselves...

First, let us read the definitions:

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES
PART I - THE AGENCIES GENERALLY
CHAPTER 8 - CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

Sec. 804. Definitions

-STATUTE-
For purposes of this chapter -
(1) The term ''Federal agency'' means any agency as that term is defined in section 551(1).
(2) The term ''major rule'' means any rule that the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget finds has resulted in or is likely to result in-
(A) an annual effect on the economy of $100,000,000 or more;
(B) a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or
(C) significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets.
The term does not include any rule promulgated under the Telecommunications Act of 1996 and the amendments made by that Act.

(3) The term ''rule'' has the meaning given such term in section 551, except that such term does not include -
(A) any rule of particular applicability, including a rule that approves or prescribes for the future rates, wages, prices, services, or allowances therefor, corporate or financial structures, reorganizations, mergers, or acquisitions thereof, or accounting practices or disclosures bearing on any of the foregoing;
(B) any rule relating to agency management or personnel; or
(C) any rule of agency organization, procedure, or practice that does not substantially affect the rights or obligations of non-agency parties.

        What are they hiding when they "borrow" definitions. Let's see what 551 says about "Federal Agency" and "rule".

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES
PART I - THE AGENCIES GENERALLY
CHAPTER 5 - ADMINISTRATIVE PROCEDURE
SUBCHAPTER II - ADMINISTRATIVE PROCEDURE

Sec. 551. Definitions

-STATUTE-
For the purpose of this subchapter -

(1) ''agency'' means each authority of the Government of the United States, whether or not it is within or subject to review by another agency, but does not include -
(A) the Congress;
(B) the courts of the United States;
(C) the governments of the territories or possessions of the United States;
(D) the government of the District of Columbia; or except as to the requirements of section 552 of this title -
(E) agencies composed of representatives of the parties or of representatives of organizations of the parties to the disputes determined by them;
(F) courts martial and military commissions;
(G) military authority exercised in the field in time of war or in occupied territory; or
(H) functions conferred by sections 1738, 1739, 1743, and 1744 of title 12; chapter 2 of title 41; subchapter II of chapter 471 of title 49; or sections 1884, 1891-1902, and former section 1641(b)(2), of title 50, appendix;

(4) ''rule'' means the whole or a part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of an agency and includes the approval or prescription for the future of rates, wages, corporate or financial structures or reorganizations thereof, prices, facilities, appliances, services or allowances therefor or of valuations, costs, or accounting, or practices bearing on any of the foregoing;

(5) ''rule making'' means agency process for formulating, amending, or repealing a rule;

        With the definitions thus covered, I can go back to the previous definitions and substitute in the equates.

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES
PART I - THE AGENCIES GENERALLY
CHAPTER 8 - CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

Sec. 804. Definitions

For purposes of this chapter -

(1) The term ''Federal agency'' each authority of the Government of the United States, whether or not it is within or subject to review by another agency, but does not include -
yada yada.

(3) The term ''rule'' has the meaning given such term in section 551,
the whole or a part of an agency statement of general applicability and future effect designed to implement, interpret, or prescribe law...

        Moving on to the specific rules if Congress does NOT agree with the agency interpretation of the Congressional statutes...

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES
PART I - THE AGENCIES GENERALLY
CHAPTER 8 - CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

Sec. 801. Congressional review

-STATUTE-
(a)(1)(A) Before a rule can take effect, the Federal agency promulgating such rule shall submit to each House of the Congress and to the Comptroller General a report containing -
(i) a copy of the rule;
(ii) a concise general statement relating to the rule, including whether it is a major rule; and
(iii) the proposed effective date of the rule.

(4) Except for a major rule, a rule shall take effect as otherwise provided by law after submission to Congress under paragraph (1).

(b)(1) A rule shall not take effect (or continue), if the Congress enacts a joint resolution of disapproval, described under section 802, of the rule.

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES
PART I - THE AGENCIES GENERALLY
CHAPTER 8 - CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

Sec. 802. Congressional disapproval procedure

-STATUTE-
(a) For purposes of this section, the term ''joint resolution'' means only a joint resolution introduced in the period beginning on the date on which the report referred to in section 801(a)(1)(A) is received by Congress and ending 60 days thereafter (excluding days either House of Congress is adjourned for more than 3 days during a session of Congress), the matter after the resolving clause of which is as follows: ''That Congress disapproves the rule submitted by the _ _ relating to _ _, and such rule shall have no force or effect.'' (The blank spaces being appropriately filled in).

(b)(1) A joint resolution described in subsection (a) shall be referred to the committees in each House of Congress with jurisdiction.
(2) For purposes of this section, the term ''submission or publication date'' means the later of the date on which -
(A) the Congress receives the report submitted under section 801(a)(1); or
(B) the rule is published in the Federal Register, if so published.

TITLE 26 - INTERNAL REVENUE CODE
Subtitle F - Procedure and Administration
CHAPTER 80 - GENERAL RULES
Subchapter A - Application of Internal Revenue Laws
 
Sec. 7805. Rules and regulations
 
-STATUTE-
(a) Authorization
Except where such authority is expressly given by this title to any person other than an officer or employee of the Treasury Department, the Secretary shall prescribe all needful rules and regulations for the enforcement of this title, including all rules and regulations as may be necessary by reason of any alteration of law in relation to internal revenue.

        The IRS Employee procedure manual, called the IRM or Internal Revenue Manual states:

4.10.7.2.3.1  (05-14-1999)
Income Tax Regulations
The Federal Income Tax Regulations (Regs.) are the official Treasury Department interpretation of the Internal Revenue Code and follow the numbering sequence of Internal Revenue Code sections.

4.10.7.2.3.4  (05-14-1999)
Authority of the Regulations
The Service is bound by the regulations.

The wording HAS NOT CHANGED from the April 1997 printing until the 2004 printing, the regulations have been IN EFFECT with the FULL FORCE AND EFFECT OF THE LAW for the 8 years it has been online.

Compare the following words found here:
Cite

[Code of Federal Regulations]
[Title 26, Volume 9, Part 1 (Secs. 1.851-1.907)]
[Revised as of April 1, 1997]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.861-8]

[Page 138-165]

TITLE 26--INTERNAL REVENUE

CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED)




Sec. 1.861-8  Computation of taxable income from sources within the United States and from other sources and activities.

(a) In general--(1) Scope. Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined. Sections 862(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources without the United States after gross income from sources without the United States has been determined. This section provides specific guidance for applying the cited Code sections by prescribing rules for the allocation and apportionment of expenses, losses, and other deductions (referred to collectively in this section as ``deductions'')
of the taxpayer. The rules contained in this section apply in

[[Page 139]]

determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections.

See paragraph (f)(1) of this section for a list and description of operative sections.
With the following words found here:
Cite

[Code of Federal Regulations]
[Title 26, Volume 9]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.861-8]


[Page 138-164]

TITLE 26--INTERNAL REVENUE

CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY (CONTINUED)

PART 1_INCOME TAXES--Table of Contents

Sec. 1.861-8  Computation of taxable income from sources within the United States and from other sources and activities.

(a) In general--(1) Scope. Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States after gross income from sources within the United States has been determined. Sections 862(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources without the United States after gross income from sources without the United States has been determined. This section provides specific guidance for applying the cited Code sections by prescribing rules for the allocation and apportionment of expenses, losses, and other deductions (referred to collectively in this section as ``deductions'')
of the taxpayer. The rules contained in this section apply in



determining taxable income of the taxpayer from specific sources and activities under other sections of the Code, referred to in this section as operative sections.

See paragraph (f)(1) of this section for a list and
description of operative sections.



Table of Contents