IRS CLAIM 7:
"Wages, tips, and other compensation received for services are not income, but rather
sources of income and as such are nontaxable because the value
of the services performed equals the
value of the wages received. Therefore there is no
taxable gain when a person exchanges his labor for
money."
REBUTTAL 7: Lawyers are really good at getting people to
argue about the wrong things to keep attention
off the real issue, aren't they? This is a good red
herring for the real claim they are afraid
to address
anywhere in their comical pamplet, because they
can't deal with this one, and it has NEVER been in front
of the U.S. Supreme Court for a decision because they are
scared to death that it will be competently
represented and shut off the vast majority of their
income, which is:
"'Wages, tips, and other compensation' in block 10 of
a W-2 are synonymous with 'gross income', and are
definitely 'types' of income, but income is not
taxable or considered 'gross income' until it comes from a
taxable 'source' as defined in 26 U.S.C. section 861
(IRC 861), at such time it becomes 'gross income'. But
domestic (within the 50 states) income of U.S. Citizens
does not qualify as either 'gross income' or
'wages, tips, and other compensation' on a W-2, both
of which are synonymous forms of taxable income,
and therefore this income is NONTAXABLE. With an
essentially zero taxable income, it is pointless for a
citizen (notice we didn't say 'taxpayer', because
that word doesn't necessarily mean 'one liable for tax') to
file an income tax return and a person cannot be compelled under
those circumstances to do so because
they fall below the minimum exemption amount
identified in section 6012 of the Internal Revenue Code."
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