The Truth About “Effectively Connecting”, Form #05.056

The following form describes in detail the meaning and all the implications of “effectively connecting” earnings on the 1040-NR tax return: The Truth About “Effectively Connecting”, Form #05.056https://sedm.org/Forms/05-MemLaw/EffectivelyConnected.pdf This is one of the most IMPORTANT links on this website. Study it under a microscope because it is the key to your exit door out of…

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ELECTIONS: When “gross income” includes more than profit

SOURCE: Gross Income Worksheet-Nonresident Alien, Form #09.080**, Section 4; https://sedm.org/product/gross-income-worksheet-nonresident-alien-form-09-080/ 1. Introduction The Sixteenth Amendment limits the term “income” and therefore STATUTORY “gross income” to “profit”.  After examining dictionaries in common use (Bouv. L.D.; Standard Dict.; Webster’s Internat. Dict.; Century Dict.), we find little to add to the succinct definition adopted in two cases arising under…

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PROOF OF FACTS: “IncludIBLE” or “includABLE”?

The main word used for equivocation about whether an earning is statutory “income” is the word “includible” v. “includable”.  Here is the trickery involved: Legal Documents In legal documents, the use of “includable” or “includible” can have a significant impact on the interpretation of the document. For example, if a contract states that certain items…

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DEFINITIONS: “Wages”

The Wealth of Nations, Adam Smith, p. 675, 1776; SOURCE: https://www.ibiblio.org/ml/libri/s/SmithA_WealthNations_p.pdf EDITORIAL: Smith deplored capitations as inequitable, inflationary, counterproductive, and destructive of liberty. Smith 5 times calls a tax on wages a direct tax in three pages of Book V This would definitely have been in the mind of the framers when they wrote the…

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Relationship between Anti-Injunction Act and Our Position

When litigating tax issues, the following two important constraints always come into play: 1. Full Payment Rule The Full Payment Rule requires that those who seek refunds of taxes paid in federal district or circuit courts must pay the entire amount in controversy before they may file suit.  This rule was first established by the…

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Meta AI: Taxability of Military Retirement

EDITORIAL: For more information on the subject of this discovery, see: Policy Document: Retirement and Pensions, Form #08.028https://sedm.org/Forms/08-PolicyDocs/RetirementAndPensions.pdf QUESTION 1: If military retirement is based on years of service and therefore personal labor, and if there is no profit from personal labor under 26 U.S.C. 83, then can one earn “gross income” from military retirement?…

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