There is no Title 17 - Title 17 has to do with copyrights. IRS code is Title 26. You have studied nothing but PUBLICATION 17. You need to study better as it specifically states:
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Foreign income.
If you are a U.S. citizen or resident alien, you must report income from sources outside the United States (foreign income) on your tax return unless it is exempt by U.S. law. This is true whether you reside inside or outside the United States and whether or not you receive a Form W-2, Wage and Tax Statement, or Form 1099 from the foreign payer. This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents, and royalties).
If you reside outside the United States, you may be able to exclude part or all of your foreign source earned income. For details, see Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.
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http://www.irs.gov/prod/forms_pubs/pubs/p1706h1.htm
Also, the site you point to has numerous books written by Lynne Meredith - whose office was raided by the IRS two - three years ago. She is a tax protestor - and although as far as I know she has yet to be tried - there are plenty of tax protestors rotting in jail for similar brilliant thoughts.
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