This is from Section 861 of the IRS Code (Title 26). I'm no legal expert, but is seems to indicate that gross income includes "personal services" and defines this as "compensation for labor...performed in the United States". It then excludes such labor if performed for foreign interests or by non-resident aliens and it is less than $3000 (I think).
Anyway. I fail to see where you can justify not paying taxes on taxable income when the code seems to define taxable income as just about everything most of us earn.
STATUTE
(a)
Gross income from sources within United States
The following items of gross income shall be treated as income from sources within the United States:
(1)
Interest
Interest from the United States or the District of Columbia, and interest on bonds, notes, or other interest-bearing obligations of noncorporate residents or domestic corporations not including -
(A)
interest from a resident alien individual or domestic corporation, if such individual or corporation meets the 80-percent foreign business requirements of subsection (c)(1), and
(B)
interest -
(i)
on deposits with a foreign branch of a domestic corporation or a domestic partnership if such branch is engaged in the commercial banking business, and
(ii)
on amounts satisfying the requirements of subparagraph (B) of section 871(i)(3) which are paid by a foreign branch of a domestic corporation or a domestic partnership.
(2)
Dividends
The amount received as dividends -
(A)
from a domestic corporation other than a corporation which has an election in effect under section 936, or
(B)
from a foreign corporation unless less than 25 percent of the gross income from all sources of such foreign corporation for the 3-year period ending with the close of its taxable year preceding the declaration of such dividends (or for such part of such period as the corporation has been in existence) was effectively connected (or treated as effectively connected other than income described in section 884(d)(2)) with the conduct of a trade or business within the United States; but only in an amount which bears the same ratio to such dividends as the gross income of the corporation for such period which was effectively connected (or treated as effectively connected other than income described in section 884(d)(2)) with the conduct of a trade or business within the United States bears to its gross income from all sources; but dividends (other than dividends for which a deduction is allowable under section 245(b)) from a foreign corporation shall, for purposes of subpart A of part III (relating to foreign tax credit), be treated as income from sources without the United States to the extent (and only to the extent) exceeding the amount which is 100/70th of the amount of the deduction allowable under section 245 in respect of such dividends, or
(C)
from a foreign corporation to the extent that such amount is required by section 243(e) (relating to certain dividends from foreign corporations) to be treated as dividends from a domestic corporation which is subject to taxation under this chapter, and to such extent subparagraph (B) shall not apply to such amount, or
(D)
from a DISC or former DISC (as defined in section 992(a)) except to the extent attributable (as determined under regulations prescribed by the Secretary) to qualified export receipts described in section 993(a)(1) (other than interest and gains described in section 995(b)(1)). In the case of any dividend from a 20-percent owned corporation (as defined in section 243(c)(2)), subparagraph (B) shall be applied by substituting ''100/80th'' for ''100/70th''.
(3)
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.
(4)
Rentals and royalties
Rentals or royalties from property located in the United States or from any interest in such property, including rentals or royalties for the use of or for the privilege of using in the United States patents, copyrights, secret processes and formulas, good will, trade-marks, trade brands, franchises, and other like property.
(5)
Disposition of United States real property interest
Gains, profits, and income from the disposition of a United States real property interest (as defined in section 897(c)).
(6)
Sale or exchange of inventory property
Gains, profits, and income derived from the purchase of inventory property (within the meaning of section 865(i)(1)) without the United States (other than within a possession of the United States) and its sale or exchange within the United States.
(7)
Amounts received as underwriting income (as defined in section 832(b)(3)) derived from the issuing (or reinsuring) of any insurance or annuity contract -
(A)
in connection with property in, liability arising out of an activity in, or in connection with the lives or health of residents of, the United States, or
(B)
in connection with risks not described in subparagraph (A) as a result of any arrangement whereby another corporation receives a substantially equal amount of premiums or other consideration in respect to issuing (or reinsuring) any insurance or annuity contract in connection with property in, liability arising out of activity in, or in connection with the lives or health of residents of, the United States.
(8)
Social security benefits
Any social security benefit (as defined in section 86(d)).
Kind of hard to follow the cut & paste, so here's the link:
http://www.fourmilab.ch/ustax/www/t26-A-1-N-I-861.html
Oh, okay, I'll tells ya. We own our piece of dirt and have Homestead Exemption on it. Money comes and money goes...who keeps up with it? It's only paper.