Section Summary 

Note:  These questions were not asked during the hearing due to time constraints.

Research Hint:  For the definitive discussion of this complex but compelling topic, please visit Larkin Rose’s website at


The 16th Amendment (purportedly) gives the government to tax income “from whatever source derived.”  The IRS would have us believe that this means that income that comes from ANY source, whatever, wherever, whenever, is subject to the income tax.

In fact this is simply not true.  In Section 861 of the IRS regulations there is a list of “sources” that are taxable.

The easiest way to frame the taxable sources subject is this:  There are many types of income (wages, salaries, dividends, rents, capital gains, etc.).  But for any of this income to be taxed, it must first come from a “taxable source” – i.e. a “source” the IRS has legal jurisdiction over to tax.

In tax code parlance, income must first become “gross income” before it can become “taxable” income (after deductions, etc.). 

The evidence will show that decades old versions of the tax code made it quite clear what income was exempt from “gross income”.  As the years progress this language is systemically removed from the regulations to increase the likelihood that readers will not consider that some income is automatically exempt via the Constitution, regardless of what is listed in the regulations.

In fact, in numerous places in the tax code the plain language of the regulations point specifically to Section 861 to determine if income is taxable or not.  The IRS contends in its publications that this Section does not apply to income earned in the U.S. but simultaneously will not directly answer the straightforward question about whether 861 is the Section to determine taxable income or not.


The IRS refuses to directly address this issue and even has the Courts now fining People for daring to ask what the written law means.  Regardless of what the IRS says – this issue has NEVER been directly adjudicated in U.S. District Court.  All legal cites the IRS gives are Tax Court cases, which as we have seen have no general applicability to the public and by law, cannot even cited by the IRS as precedent.

In short, as the regulations are plainly written, the language of Section 861 does not make the incomes of ordinary Americans taxable, because it does not come from a taxable source.