Internal Revenue Code 861
Encyclopedia
Internal Revenue Code 861, , titled "Income from sources within the United States" is a provision of the Internal Revenue Code
which lists "The following items of gross income shall be treated as income from sources within the United States", for purposes of various taxes imposed by Subchapter N (sections 861 through 999) of Chapter 1 of Subtitle A of the Code.
Among the taxes to which section 861 relates are:
Section 861 sets forth a number of definitions for terms used in the section. A particularly widespread statutory argument
used by tax protesters interprets these definitions to apply throughout the tax code, with the conclusion that only income described in section 861 is taxable
. The IRS and federal courts have consistently rejected this interpretation, as in US v. Wesley Snipes
et al.
Internal Revenue Code
The Internal Revenue Code is the domestic portion of Federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code...
which lists "The following items of gross income shall be treated as income from sources within the United States", for purposes of various taxes imposed by Subchapter N (sections 861 through 999) of Chapter 1 of Subtitle A of the Code.
Among the taxes to which section 861 relates are:
-
- the section 871(a) tax on certain items of income of nonresident alien individuals not in connection with a United States business, generally equal to 30% of certain amounts received by such nonresident alien individuals;
-
- the section 871(b) ) tax on certain items of income of nonresident alien individuals effectively connected with the conduct of a United States business;
-
- the section 881 and section 882 taxes on the income of certain foreign corporations; and
-
- the section 887 tax on the "gross transportation income" of certain nonresident aliens and foreign corporations.
Section 861 sets forth a number of definitions for terms used in the section. A particularly widespread statutory argument
Tax protester statutory arguments
Tax protesters in the United States make a number of statutory arguments that the assessment of the federal income tax in the United States violates the statutes enacted by the United States Congress and signed into law by the President...
used by tax protesters interprets these definitions to apply throughout the tax code, with the conclusion that only income described in section 861 is taxable
Tax protester 861 argument
The 861 argument is a statutory argument used by tax protesters in the United States, which interprets a portion of the tax code as invalidating certain applications of income tax...
. The IRS and federal courts have consistently rejected this interpretation, as in US v. Wesley Snipes
Wesley Snipes
Wesley Trent Snipes is an American actor, film producer, and martial artist, who has starred in numerous action films, thrillers, and dramatic feature films. Snipes is known for playing the Marvel Comics character Blade in the Blade film trilogy, among various other high profile roles...
et al.