And that is the totality of Thurston Bell's "strategery." You simply claim that you are a nonresident alien with no income from any source inside the United States.
Can you point to the section or regulation where it says that only nonresident aliens are to use Section 861 to determine taxable income from sources within the United States?
Let's try Title 26, Subtitle A, Chapter 1, Subchapter A, Part I, Section 1.
That imposes a tax based on the income of any US citizen or resident alien from whatever source derived.
Let's try Title 26, Subtitle A, Chapter 1, Subchapter N, Part II, Section 871:
Except as provided in subsection (h), there is hereby imposed for each taxable year a tax of 30 percent of the amount received from sources within the United States by a nonresident alien individual... (followed by a description of what gets taxed, which refers extensively to Part I, Section 861).
Subchapter N, Part I, Section 861 only gives you the rules for determining what is and isn't taxable income if you fall under Subchapter N, Part II, Section 871--i.e., if you are a nonresident alien.
If you're not a nonresident alien, you compute your taxable income using Chapter 1, Subchapter B.
Yes, the rules ARE different if you're a US resident as opposed to a nonresident alien.
Can you point to the section or regulation where it says that only nonresident aliens are to use Section 861 to determine taxable income from sources within the United States?
Doesn't matter as, compensation for labor or services earned in the United States by United States Citizens is treated as income from sources within the United States under 861 with certain exceptions applying to nonresident aliens.
26 USC Sec. 861. Income from sources within the United States
(a) Gross income from sources within United States
The following items of gross income shall be treated as
income from sources(activities) within the United States3) Personal services
Compensation for labor or personal services performed in the United States;EXCEPT that compensation for labor or services
performed in the United States shall not be deemed to be income
from sources within the United States if -(A) the labor or services are performed by a nonresident
alien individual temporarily present in the United States for a period or periods not exceeding a total of 90 days during the
taxable year,
(B) such compensation does not exceed $3,000 in the
aggregate, and
(C) the compensation is for labor or services performed as an
employee of or under a contract with(i) a nonresident alien, foreign partnership, or foreign
corporation, not engaged in trade or business within the
United States, or
(ii) an individual who is a citizen or resident of the
United States, a domestic partnership, or a domestic corporation, if such labor or services are performed for an office or place of business maintained in a foreign country
or in a possession of the United States by such individual, partnership, or corporation.
In addition, except for purposes of sections 79 and 105 and
subchapter D, compensation for labor or services performed in the
United States shall not be deemed to be income from sources
within the United States if the labor or services are performed
by a nonresident alien individual in connection with the
individual's temporary presence in the United States as a regular
member of the crew of a foreign vessel engaged in transportation
between the United States and a foreign country or a possession
of the United States.
If You are a citizen of the United States earning a wage in the United States, you get to include your wages in computation of the tax you owe.
26 USC 7805(a) Rules and regulations
(a) Authorization - … the Secretary [of the Treasury] shall prescribe all needful rules and regulations for the enforcement of this title [Title 26]…" [26 USC § 7805]
Thus under amplifying Treasury regulations for 26 USC 1, 26 CFR 1.1-1(a),(b)
Sec. 1.1-1 Income tax on individuals.
(a) General rule. (1) Section 1 of the Code imposes an income tax on the income of every individual who is a citizen or resident of the United States and, to the extent provided by section 871(b) or 877(b), on the income of a nonresident alien individual.(b) Citizens or residents of the United States liable to tax. In general, all citizens of the United States, wherever resident, and all resident alien individuals are liable to the income taxes imposed by the Code whether the income is received from sources within or without the United States.