There is a risk involved, as always, in dealing with these criminals. But if you could, you may want to explain, or even better provide “CODE BREAKER; THE § 83 EQUATION” to your employer and ask them the following questions:
Would you agree that you are compensating me for my services?
Would you agree that the compensation for my services is only the cost and that there is no excess paid for such services?
If, in connection with the performance of services, property is transferred to any person other than the person for whom such services are performed, the excess of … the fair market value of such property … over … the amount (if any) paid for such property, shall be included in the gross income of the person who performed such services… 26 USC §83
Keep in mind, your employer when he is making out his business returns he is deducting your compensation as an expense of doing business.
(CFR) § 1.61-1 states that “Gross income means all income from whatever source derived, "unless excluded by
law.”
26 CFR § 1.61-1 is the implementing regulation for 26 USC § 61(a) which defines “Gross Income” in similar wording:
“Gross income defined
“(a) General definition
“Except as otherwise provided in this subtitle, gross income means all income from whatever source derived, including (but not limited to) the following items:
“(1) Compensation for services,
including fees, commissions, fringe benefits, and similar items;”
Further, 26 CFR § 1.312-6(b), states in part: “Among the items entering into the computation of corporate earnings and profits for a particular period are all income exempted by statute, income not
taxable by the Federal Government under the Constitution, as well as all items includible in gross income under section 61 or corresponding provisions of prior revenue acts.”
According to law, there appear to be items constituting income which are: 1) excluded by law; 2) exempted by statute or; 3) constitute
“except[ions] as otherwise provided in this subtitle.” Should I file a return being ignorant of such exclusions, exemptions or exceptions, I will have effectively self-determined that all receipts listed in said return would be encompassed within “gross income” and are therefore taxable
