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Minion, that cite still doesn't tell me where in the law or regulations it indicates that section 861 only applies to situations where you have income that is taxable in multiple countries, and where the statute limits the definition of "taxpayer" that is used in that section.

And what you posted is a list of "items" of gross income, not a list of "sources" or a definition of what a "source" of income actually is.

26 USC 7805(a) Rules and regulations
(a) Authorization - … the Secretary [of the Treasury] shall prescribe all needful rules and regulations for the enforcement of this title [Title 26]…" [26 USC § 7805]

Thus under amplifying Treasury regulations for 26 USC 1, 26 CFR 1.1-1(a),(b)

Sec. 1.1-1 Income tax on individuals.

(a) General rule. (1) Section 1 of the Code imposes an income tax on the income of every individual who is a citizen or resident of the United States and, to the extent provided by section 871(b) or 877(b), on the income of a nonresident alien individual.
(b) Citizens or residents of the United States liable to tax. In general, all citizens of the United States, wherever resident, and all resident alien individuals are liable to the income taxes imposed by the Code whether the income is received from sources within or without the United States.

And in Regard to 26 USC 861

[CITE: 26CFR1.861-1] [Page 119-120]
TITLE 26--INTERNAL REVENUE (CONTINUED) Normal Taxes and Surtaxes (Continued)--
Table of Contents Sec. 1.861-1 Income from sources within the United States.

(a) Categories of income.
Part I (section 861 and following), subchapter N, chapter 1 of the Code, and the regulations thereunder determine the sources of income for purposes of the income tax. These sections explicitly allocate certain important sources of income to the United States or to areas outside the United States, as the case may be; and, with respect to the remaining income (particularly that derived partly from sources within and partly from sources without the United States), authorize the Secretary or his delegate to determine the income derived from sources within the United States, either by rules of separate allocation or by processes or formulas of general apportionment. The statute provides for the following three categories of income:
(1) Within the United States. The gross income from sources within the United States, consisting of the items of gross income specified in section 861(a) plus the items of gross income allocated or apportioned to such sources in accordance with section 863(a). See Secs. 1.861-2 to 1.861-7, inclusive, and Sec. 1.863-1. The taxable income from sources within the United States, in the case of such income, shall be determined by deducting therefrom, in accordance with sections 861(b) and 863(a), the expenses, losses, and other deductions properly apportioned or allocated thereto and a ratable part of any other expenses, losses, or deductions which cannot definitely [[Page 120]] be allocated to some item or class of gross income. See Secs. 1.861-8 and 1.863-1.

TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter N - Tax Based on Income From Sources Within or Without the United States
PART I - SOURCE RULES AND OTHER GENERAL RULES RELATING TO FOREIGN INCOME
Sec. 861. Income from sources within the United States
(a) Gross income from sources within United States
The following items of gross income shall be treated as income
from sources within the United States:

(3) Personal services
Compensation for labor or personal services performed in the United States;
EXCEPT that compensation for labor or services performed in the United States shall not be deemed to be income from sources within the United States if -

(A) the labor or services are performed by a nonresident alien individual temporarily present in the United States for a period or periods not exceeding a total of 90 days during the taxable year,
(B) such compensation does not exceed $3,000 in the aggregate, and
(C) the compensation is for labor or services performed as an employee of or under a contract with -

(i) a nonresident alien, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, or
(ii) an individual who is a citizen or resident of the United States, a domestic partnership, or
a domestic corporation, if such labor or services are performed for an office or
place of business maintained in a foreign country
or in a possession of the United States by such individual, partnership,
or corporation,
In addition, except for purposes of sections 79 and 105 and subchapter D, compensation for labor or services performed in the United States shall not be deemed to be income from sources within the United States if the labor or services are performed by a nonresident alien individual in connection with the individual's temporary presence in the United States as a regular member of the crew of a foreign vessel engaged in transportation between the United States and a foreign country or a possession of the United States.

In Summary, if you are a United States citizen, and receive compensation for labor or compensation for other activities(i.e. sources) in the United States you are subject to income taxes.

compensation = item of income
in exchange for = activity
service = source.

A tax levied as an excise or duty on an activity of commerce.

A LAW DICTIONARY
by John Bouvier, Revised Sixth Edition, 1856:
WAGES, contract. A compensation given to a hired person for his or her services.

KNOWLTON v. MOORE, 178 U.S. 41 (1900)

'indirect taxes are levied upon the happening of an event or an exchange.'

BROMLEY v. MCCAUGHN, 280 U.S. 124 (1929)

While taxes levied upon or collected from persons because of their general ownership of property may be taken to be direct, Pollock v. Farmers' Loan & Turst Co., 157 U.S. 429 , 15 S. Ct. 673; Id., 158 U.S. 601 , 15 S. Ct. 912, this court has consistently held, almost from the foundation of the government, that a tax imposed upon a particular use of property or the exercise of a single power over property incidental to ownership, is an excise which neet not be apportioned

Tyler v. U.S. 281 U.S. 497, 502 (1930)

An indirect tax is a tax laid upon the happening of an event,as distinguished from its tangible fruits.

House Congressional Record, March 27, 1943, pg. 2580:

"The income tax is, therefore, not a tax on income as such. It is an excise tax with respect to certain activities and privileges (the type 3 and 4 taxes) which is measured by reference to the income which they produce. The income is not the subject of the tax; it is the basis for determining the amount of tax."

Minion, that cite still doesn't tell me where in the law or regulations it indicates that section 861 only applies to situations where you have income that is taxable in multiple countries, and where the statute limits the definition of "taxpayer" that is used in that section.

Do you have income that is taxed by a country other than the United States?

And what you posted is a list of "items" of gross income, not a list of "sources" or a definition of what a "source" of income actually is.

Are you unable to read?

The following items of gross income shall be treated as income from sources within the United States:

"Item of income" and "source of income" are semantically identical within the Internal Revenue Code.

Minion, that cite still doesn't tell me where in the law or regulations it indicates that section 861 only applies to situations where you have income that is taxable in multiple countries, and where the statute limits the definition of "taxpayer" that is used in that section.

You are correct. It simply says that ANY income earned in the US is taxable.