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To: UbIwerks
I'll ask you again. Where is the term wages and salaries in Sec. 61 about sources of income?

I just gave you the cite....26CFR, Sec 1.61-2 specifically identifies wages and salaries as income!!! Even if Kuglin was too slow to follow the US Code definition of "income from whatever source derived" and specically identifies "compensation for services", she could have gone to any IRS office and asked for the laws and guidelines, or to explain Title 26 US Code. But we both know she was not that stupid. She was playing a game with them, is damn lucky she had a stupid jury, and will eventually pay her taxes, interest and penalties.

Even if you can't find the CFR's, I need to know why wages and salaries aren't compensation for services, or part of "income from whatever source derived".

45 posted on 09/02/2003 3:34:32 PM PDT by MACVSOG68
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To: MACVSOG68
Even if you can't find the CFR's, I need to know why wages and salaries aren't compensation for services, or part of "income from whatever source derived".

So much for your garbage about wages and salaries being in the Internal Revenue Code and applying to Mrs. Kuglin. And even if some regulation mentions wages and salaries (not mentioned by USC 26 itself), it obviously is a benign regulation. That's part of the reason the IRS would not answer Mrs. Kuglin's simple request(s).

As for your question about "fees and compensation for services," a corporation can receive fees and compensation for services; a wage worker such as Mrs. Kuglin does not!

49 posted on 09/02/2003 4:04:44 PM PDT by UbIwerks
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To: MACVSOG68
"I just gave you the cite...CFR 26 1.61-2..."

Ahhh, not so fast. Here it is from the Code of Federal Regulations:

"PART 1--INCOME TAXES--Table of Contents

Sec. 1.61-2 Compensation for services, including fees, commissions, and similar items.

(a) In general. (1) Wages, salaries, commissions paid salesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses (including Christmas bonuses), termination or severance pay, rewards, jury fees, marriage fees and other contributions received by a clergyman for services, pay of persons in the military or naval forces of the United States, retired pay of employees, pensions, and retirement allowances are income to the recipients unless excluded by law. Several special rules apply to members of the Armed Forces, National Oceanic and Atmospheric Administration, and Public Health Service of the United States; see paragraph (b) of this section."

All references to wages, salaries, tips and compensation for personal services were purged from the Code starting in 1954. What entity fits all the above categories? A corporation, of course. Since income has been ruled by the Supreme Court to be a corporate profit, this section deftly encompasses corporations but not individuals.

Also, most people don't know to look to the "Definitions" paragraphs under each title or subtitle. That is where Congress defines the terms it uses in the statute.

As we all know, lawyers employ what are called "words of art". They can say "All individuals must pay the tax" without revealing what their definition of an "individual" is in that context. An "individual" or "person" could be a corporation, trust, partnership, many things besides a flesh-and-blood human being exercising his right to work for the provision of himself and his family and to keep a roof over their heads.

67 posted on 09/02/2003 5:07:27 PM PDT by Middle Man
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