861 Argument

    • Section deals with the definition of income derived from within the United States
    • Courts have repeated ruled that it does not exempt U.S. income from tax
    • IRS has begun prosecuting taxpayers who fail to pay based on that section for fraud
  • The 861 Argument is the mistaken belief that Section 861 of the IRS Code states that U.S. Citizens don't need to pay taxes on U.S. Income. This is an erroneous interpretation of the section.

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