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There are specific rules (mainly in 26 CFR ��
1.861-8) describing when domestic income is
taxable (non-exempt), and describing when
foreign income is taxable. Those rules only
show income to be taxable when derived from
certain specific sources and activities, all
of which are connected to international or
foreign commerce (including, among other
things, foreigners receiving income from the
U.S., and Americans receiving certain foreign
income). Those rules do not show the
domestic income of most Americans to be
taxable.
As to the substance of petitioner’s motion, analogous
arguments premised on section 861 and the regulations promulgated
thereunder have been repeatedly rejected. E.g., Takaba v.
Commissioner, 119 T.C. 285, 294-295 (2002); Williams v.
Commissioner, 114 T.C. 136, 138-139 (2000); Dashiell v.
Commissioner, T.C. Memo. 2004-210; Corcoran v. Commissioner, T.C.
Memo. 2002-18, affd. 54 Fed. Appx. 254 (9th Cir. 2002). In
Williams v. Commissioner, supra at 138, for instance, the
taxpayer contended that his income, because not from any of the
sources listed in section 1.861-8(a), Income Tax Regs., was not
taxable. This Court observed:
Petitioner’s arguments are reminiscent of tax-
protester rhetoric that has been universally rejected
by this and other courts. We shall not painstakingly
address petitioner’s assertions “with somber reasoning
and copious citation of precedent; to do so might
suggest that these arguments have some colorable
merit.” Crain v. Commissioner, 737 F.2d 1417, 1417
(5th Cir. 1984). * * * [Id. at 138-139.]
Suffice it to say that we direct petitioner to this Court’s
recent detailed explanation and analysis in Dashiell v.
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