Quote:
Originally Posted by FRPLG
This argument is a sham and no one has ever successfuly used it to not pay taxes. In fact this guy went to jail because of this argument.The 861 argument has been found to be a frivolous argument many times. Essentially his argument is that the term 'sources derived" must be defined explicitly. Section 861 appears to do this but courts have found 100% that the section that initially references "sources derived" is general enough and explanatory enough as to not require an explicit dictionary thus rendering the rest of his argument moot. Basically he argues that the government is supposed to be taxing income based on WHERE it comes from and the courts have held that where income comes from is not even part of the equation.
The better argument is that our federal government clearly has no right to actually tax our incomes. No where in the constitution does it explicitly or even indirectly offer that power to the legislature. Good luck though.
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The second argument that the federal Gov. has no right to tax our incomes is what I have heard them say and is what this friend says and does not pay federal income tax. I guess one day I will vist him in jail.