Income tax sections nobody knows about
For over a century—since 1913—the Department of Justice has enforced an income tax inside the United States that does not exist in the statute. Generations have been led to file and pay under rules that never applied domestically. The Internal Revenue Code contains cross-border rules—left intact after the Sixteenth Amendment—that limit the income tax to income that crosses national borders.
The crucial sections do not reference one another. Congress omitted cross-references to Section 7701, where the terms “individual,” “person,” and “taxpayer” are defined as foreigners outside the United States. Without cross-references, familiar words are read in plain English and the tax is misapplied inside the United States.
Congress also omitted cross-references to Subchapter N, titled “Tax Based on Income From Sources Within or Without the United States.” These source rules classify income legally, not geographically. Together with Section 7701, they show that the income tax applies only when income crosses national borders—either to foreigners outside the United States, or to citizens or residents inside the United States when income is foreign or paid by a foreign employer.
Income earned entirely inside the United States is not included. This cross-border structure has existed since 1862. It has been misapplied for generations by judges who disregard these rules and substitute opinions for the written law. But judicial opinions are NOT the law.
Meet Tom Clayton, MD
Unmasking the Crucial Sections
Dr. Tom Clayton, a seasoned medical professional with a background in pure mathematics, has always insisted that rules must be obeyed exactly to avoid mistakes. With no quality issues during his entire medical career, he wanted to know why tax advisors and the IRS had been making repeated mistakes over the same time span.
What was being universally misunderstood? Congress has used the same indirect, cross-border structure since 1862. The written rules have always applied only when income crosses national borders, not to citizens or residents inside the United States with purely domestic income. The later assumption of a domestic income tax came from courts, not from the statutes.
In 1916, Congress repealed the 1913 domestic tax and left in place the current system, which functions like a tariff through the “Cross Border Rules.” Because the statutes omit direct references to the 7701 definitions and the Subchapter N source rules, experts have assumed a domestic tax that Congress has never imposed.
Tom Clayton, MD
Insights You'll Gain from This Book
● Legal Definitions Unveiled: Section 7701 defines “persons,” “individuals,” and “taxpayers” as foreigners outside the U.S. By omitting references to these crucial legal definitions, plain English meanings have resulted in the tax being misapplied inside the United States.
● The Hidden History: Despite ratification of the 16th Amendment in 1913 removing the apportionment requirement for direct income taxes, Congress continued the cross border tax it had imposed since 1862. To the present day, there has never been a federal income tax inside the United States.
● Why It Matters Today: Search engines now allow anyone to read the law directly without federal interference. They can see for themselves that the tax applies only to foreigners outside the United States with income from inside the United States, and to U.S. citizens or residents inside the United States with foreign employers, not to purely domestic income that does not cross national borders.
Real Reactions From Readers
“Tom’s book opened my eyes. It’s easy to read and uses search engines to prove that the income tax only applies to income that crosses the borders of the United States.”
– A.W., Lawyer
American Citizens inside the United States
By using the power of search engines and only the income tax law (IRC), NOT the regulations, IRS publications, or judicial opinions (which are not the law), American citizens can see that they are taxed only when their income crosses national borders (Subchapter N).
The IRC exposes the “Administrative State” — a web of unelected federal lawyers who act as judge, jury, and executioner, enforcing an income tax inside the United States since 1913, the first income tax of the 20th century.
Unmasking the Tax Code
Federal lawyers have enforced the income tax inside the United States by using plain-English meanings for familiar terms that have binding legal definitions. Because Congress omitted references to Section 7701 and Subchapter N, neither the public nor tax authorities know that citizens and residents inside the United States are only taxed when their income crosses national borders.
What This Means For You
Once you see the statutory definitions behind the most familiar words—and the withholding rules—you’ll recognize that the federal tax system has been misapplied inside the United States for more than a century. This book doesn’t persuade; it proves that the income tax has been enforced inside the United States by assumptions, not by law.
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Note
This book does not tell anybody what to do or give financial advice. It uses search engines to show the law without federal interference proving the income tax only applies to income crossing national borders of the United States.