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Thread: No Income Tax paid - 3 years and counting.

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  1. #5
    Senior Member motla68's Avatar
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    31 USC 3124 - Sec. 3124. Exemption from taxation

    (a) Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State.

    The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax, except - (1) a nondiscriminatory franchise tax or another nonproperty tax instead of a franchise tax, imposed on a corporation; and (2) an estate or inheritance tax. (b) The tax status of interest on obligations and dividends, earnings, or other income from evidences of ownership issued by the Government or an agency and the tax treatment of gain and loss from the disposition of those obligations and evidences of ownership is decided under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.). An obligation that the Federal Housing Administration had agreed, under a contract made before March 1, 1941, to issue at a future date, has the tax exemption privileges provided by the authorizing law at the time of the contract.

    This subsection does not apply to obligations and evidences of ownership issued by the District of Columbia, a territory or possession of the United States, or a department, agency, instrumentality, or political subdivision of the District, territory, or possession.
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    26 CFR 1.83-3 - Meaning and use of certain terms.

    Code of Federal Regulations - Title 26: Internal Revenue

    (4)(g)
    Amount paid. For purposes of section 83 and the regulations thereunder, the term amount paid refers to the value of any money or property paid for the transfer of property to which section 83 applies, and does not refer to any amount paid for the right to use such property or to receive the income therefrom. Such value does not include any stated or unstated interest payments. For rules regarding the calculation of the amount of unstated interest payments, see 1.4831(c).

    When section 83 applies to the transfer of property pursuant to the exercise of an option, the term amount paid refers to any amount paid for the grant of the option plus any amount paid as the exercise price of the option. For rules regarding the forgiveness of indebtedness treated as an amount paid, see 1.834(c).
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    The first statute shows the exemption for obligations of the United States, i.e. Lawful Money
    The second statute is pretty much a checkmate because even that last statute mentioning the other sections, they relate to performance for services rendered which is also exempt.
    Income is corporate profits, plain and simple because the value offered and amount paid are the same. Even bonus checks and such if marked with the demand for lawful money are exempt from taxation, because that shows you have no interest in profiting from the interest at banks.
    This is also why it is best to try and find a bank account that is non-interest baring therefor no reporting to IRS need be done.
    Claim ownership of nothing, exercise control of everything for the benefit of thy neighbor.
    Last edited by motla68; 10-30-11 at 11:10 PM.

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