"income" defined-NOTE: It must FIRST be "income" in order to be "gross income"!
Commissioner v. Duberstein, 363 U.S. 278 (1960):
"The exclusion of property acquired by gift from gross income under the federal income tax laws was made in the first income tax statute 4 passed under the authority of the Sixteenth Amendment, and has been a feature of the income tax statutes ever since. The meaning of the term "gift" as applied to particular transfers has always been a matter of contention. 5 Specific and illuminating legislative history on the point does not appear to exist. Analogies and inferences drawn from other revenue provisions, such as the estate and gift taxes, are dubious. See Lockard v. Commissioner, 166 F.2d 409. The meaning of the statutory term has been shaped largely by the decisional law."
26 U.S.C.A.
954 (1928): Gross Income (2.28 Mbytes)
26 U.S.C.A.
22 (1935): Gross Income (5.17 Mbytes)
TITLE 26 > Subtitle A > CHAPTER 1 > Subchapter N > PART II > Subpart A > Sec. 872.
Sec. 872. - Gross income
(a) General rule
In the case of a nonresident alien individual, except where the context clearly indicates otherwise, gross income includes only -
(1) gross income which is derived from sources within the United States [** the federal zone] and which is not effectively connected with the conduct of a trade or business within the United States [** federal zone], and
(2) gross income which is effectively connected with the conduct of a trade or business within the United States [** federal zone].
26 CFR Sec.
31.3402(p)-1
Title 26
CHAPTER I
SUBCHAPTER C
PART 31
Subpart E
Sec. 31.3402(p)-1 Voluntary withholding agreements.
(a) In general.
An employee and his employer may enter into an agreement
under section 3402(b) to provide for the withholding of income tax upon
payments of amounts described in paragraph (b)(1) of Sec. 31.3401(a)-3,
made after December 31, 1970. An agreement may be
entered into under this
section only with respect to amounts which are includible in the gross
income of
the employee under section 61, and must be applicable to all such amounts
paid by the employer to the employee. The amount to be withheld
pursuant to
an agreement under section 3402(p) shall be determined under the rules
contained in section 3402 and the regulations thereunder. (b) Form and
duration of agreement. (1)(i) Except as provided in subdivision (ii) of
this subparagraph, an employee who desires to enter into an agreement
under
section 3402(p) shall furnish his employer with Form W-4 (withholding
exemption certificate) executed in accordance with the provisions of
section 3402(f) and the regulations thereunder. The furnishing of such
Form W-4
shall constitute a request for withholding.
(ii) In the
case of an employee who desires to enter into an agreement
under section 3402(p) with his employer, if the employee performs services
(in
addition to those to be the subject of the agreement) the remuneration
for which is subject to mandatory income tax withholding by such employer,
or if the employee wishes to specify that the agreement terminate on a
specific date, the employee shall furnish the employer with a request for
withholding which shall be signed by the employee, and shall contain -
(a) The name,
address, and social security number of the employee making
the request,
(b) The name and address of the employer,
(c) A statement that the employee desires withholding of Federal income
tax, and applicable, of qualified State individual income tax (see
paragraph
(d)(3)(i) of Sec. 301.6361-1 of this chapter (Regulations on Procedures
and Administration)), and
(d) If the employee desires that the agreement terminate on a specific
date, the date of termination of the agreement. If accepted by the
employer as
provided in subdivision (iii) of this subparagraph, the request shall be
attached to, and constitute part of, the employee's Form W-4. An
employee who furnishes his employer a request for withholding under this
subdivision shall also furnish such employer with Form W-4 if such
employee does not
already have a Form W-4 in effect with such employer.
(iii) No
request for withholding under section 3402(p) shall be
effective as an agreement between an employer and an employee until the
employer
accepts the request by commencing to withhold from the amounts with
respect to
which the request was made.
{2) An
agreement under section 3402 (p) shall be effective for such
period as the employer and employee mutually agree upon. However, either
the
employer or the employee may terminate the agreement prior to the end of
such period by furnishing a signed written notice to the other. Unless
the employer and employee agree to an earlier termination date, the notice
shall be effective with respect to the first payment of an amount in
respect
of which the agreement is in effect which is made on or after the first
'status determination date' (January 1, May 1, July 1, and October 1 of
each
year) that occurs at least 30 days after the date on which the notice is
furnished. If the employee executes a new Form W-4, the request upon
which an agreement under section 3402 (p) is based shall be attached to,
and
constitute a part of, such new Form W-4.
(86 Stat. 944,
26 U.S.C. 6364; 68A Stat. 917, 26 U.S.C. 7805) (T.D.
7096, 36 FR 5216, Mar. 18, 1971, as amended by T.D. 7577, 43 FR 59359,
Dec. 20,
1978)