And as I mentioned above, the regulations say that "Sections 861(b) and 863(a) state in general terms how to determine taxable income of a taxpayer from sources within the United States" [in 26 CFR §1.861-8(a)(1)], and "The taxpayer's taxable income from sources within or without the United States will be determined under the rules of Secs. 1.861-8 through 1.861-14T for determining taxable income from sources within the United States." [in 26 CFR §1.863-1(c)]
Furhthermore, the tax code jargon for your "non-US citizens living outside the United States" phrase is "nonresident alien individuals," and 26 CFR § 1.1-1(b), to which you refer, says that for these people, you should "see sections 871 and 877," not §861 as you suggest.
I guess I still don't follow your reasoning - I apologize. Could you please refer me to where the law or regulations say that §861 only applies to the income of nonresident alien individuals? I'd really like to know.
Try US Code, Title 26, Subtitle A, Chapter 1, Subchapter B, Part I.
Furhthermore, the tax code jargon for your "non-US citizens living outside the United States" phrase is "nonresident alien individuals," and 26 CFR § 1.1-1(b), to which you refer, says that for these people, you should "see sections 871 and 877," not §861 as you suggest.
As I've already noted in my previous post.
I guess I still don't follow your reasoning - I apologize. Could you please refer me to where the law or regulations say that §861 only applies to the income of nonresident alien individuals? I'd really like to know.
As I've already pointed out, I've acknowledged my error re: §861. However, §861 covers specific issues that do not arise unless you have income that is taxable in multiple countries.