compensation for services or labor is an ITEM of income, not a SOURCE of income. I'm not arguing that compensation for services or labor is not expressly included.
"It is an item of gross income treated as income from sources". The exchange( of comepensation for labor) is the source of income( compensation). Got it?
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;
Wake up friend, you are so attached to your conclusion, that you cannot perceive the reality staring you in the face.
The item of income (compensation for labor) must derive from a source that is either within or without the US. The item is not the source. You are conflating items and sources.