The presentation at www.taxableincome.net takes the law out of context and misconstrues it. The section of the Internal Revenue Code they rely upon (§861) is in PART I "SOURCE RULES AND OTHER GENERAL RULES RELATING TO FOREIGN INCOME" of SUBCHAPTER N--"TAX BASED ON INCOME FROM SOURCES WITHIN OR WITHOUT THE UNITED STATES". Section 861 deals with foreign income regardless if it is paid in the United States or outside the United States. The legislative purpose behind the Foreign Investors Tax Act of 1966 [which included §861] was to provide equality in taxation of income derived by foreign corporations doing business in United States and to prevent foreign corporations from using United States as a tax haven and avoid paying income tax altogether on large amounts of income. Bank of America, Nat. Trust and Sav. Ass'n v. Chaco, D.C.Guam 1976, 423 F.Supp. 409.I took their little test for tax professionals. His arguments rely on the 1977 code and 1945 code sections. I hate to tell him that the tax code had a major overhaul in 1986, which negates 5 of his 8 arguments.Finally, his site states "Who is this Larken Rose guy, anyway?""Larken Rose is a not a lawyer. He has never received formal training in tax law, or any other kind of law. He has no special degrees or credentials regarding tax law. He earns his living in a business unrelated to tax law." Has anyone here ever read a code section and was confused by what it was saying? I have and I am supposed to be what he calls a "so-called - expert". So in essence, his argument is, "Although I have no experience interpreting complicated statutes, any moron (except tax professionals, the IRS & the courts) can read this one sentence and see that I am right." Well, gosh I wasted 4 years learning how to read and interpret these statutes. And darn, now I am out of the business of teaching others how to do it too. ;0) Oh, if it were only that easy. It is people like Larken Rose that keeps me in business.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra