WEvGOV.com - What are you missing? Code Breaker; The § 83 Equation - by David R. Myrland If you don’t know about Tax Code § 83 you’re missing out on the Tax Code’s definition of “income” that’s fully described in this amazing desk reference.
“Section 83(a) generally provides that where property is
transferred in connection with the performance of past, present, or future services, the excess of the fair market 205*205 value of the property over the amount paid for the property is includable as compensation in the gross income of the taxpayer who performed the services. Bagley v.
Commissioner, 85 T.C. 663, 669 (1985), affd. per curiam 806 F.2d 169 (8th Cir. 1986). Section 83 does not apply only to employees of the transferor of the property; rather, it is applicable to any person other than the one for whom the services were performed, including independent contractors of the transferor. Cohn v. Commissioner, 73 T.C. 443, 446 (1979). (footnote
omitted).”
See Pagel, Inc. v. Commissioner, 91 TC 200, 204-05 (Tax Court #34122-85, 1988).
This is the only source of information about § 83 in existence, even though: “Section 83(a) explains how property
received in exchange for services is taxed.” (See Montelepre Systemed, Inc. v. C.I.R., 956 F.2d 496, 498 at [1] (CA5 1992)). Section 83 applies to all compensation paid for services of corporations, and for the services of individuals. (See 26 CFR 1.83-3(e), (f); MacNaughton v. C.I.R., 888 F.2d 418 (CA6 1989); Pledger v. C.I.R., 641 F.2d 287 (CA5 1981); Alves v. C.I.R., 734 F.2d 478, 481 (CA9 1984); Klingler Electric Co. v.
C.I.R., 776 F.Supp. 1158, 1164 at [1] (S.D.Miss. 1991); Robinson v. C.I.R., 82 USTC 444 (1984); Cohn v. C.I.R., 73 USTC 443, 446 (1979)).
“At the heart of this case is I.R.C. § 83, which governs the taxation of property transferred in connection with the performance of
services.”
See Gudmundsson v. US, 634 F.3d 212 (CA2 2011).
Revenue Ruling 2007-19, IRS’ Office of Associate Chief Counsel (Procedure & Administration), Administrative Provisions and Judicial Practice
Division, 2007): “Section 83 provides for the determination of the amount to be included in gross income and the timing of the inclusion when property is transferred to an employee or independent contractor in connection with the performance of services.”
Ron MacDonald is widely known as a
legal scholar and expert on the perils of fiat currency. After thoroughly pouring over Code Breaker by David R. Myrland he was glad to say this:
“David, I have read, studied and researched Section 83 in alignment with your information. I tried to disprove it, but failed. It is an excellent work.”
Ron MacDonald (June 7, 2016) Author of “They Own It All“ Only the excess over the amount paid is gross income,
according to § 83! Until you know what’s in this book, you’re guessing at the true nature of income taxation. Until you’re familiar with David Myrland’s analysis of the Tax Code you’re in the dark, because nobody’s done as much work to decipher the contents of the Tax Code.
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