- 13 -
T.C. 95 (2001), affd. sub nom. Haessly v. Commissioner, 68 Fed.
Appx. 44 (9th Cir. 2003), affd. sub nom. Umbach v. Commissioner,
357 F.3d 1108 (10th Cir. 2003). In Specking, we held, inter
alia: (1) Johnston Island does not constitute a specified
possession for purposes of section 931 as amended by the TRA
1986; and (2) the amendment of old section 931 by the TRA 1986
became effective as to taxpayers who earned compensation while
working on Johnston Island for taxable years that began after
December 31, 1986. Id. at 108-109. In so holding, we rejected
as misplaced the reliance by the taxpayers in Specking on section
1.931-1, Income Tax Regs., promulgated under old section 931.
Id. at 110. We stated:
The regulatory language on which petitioners rely
defines the term “possession” for purposes of old
section 931. As we have concluded above, that provi-
sion no longer applies to petitioners. Consequently,
the regulatory provision also has no application to
them and is obsolete as to petitioners.
Id. at 110-111.
Petitioners nonetheless claimed the $99,980 exclusion of
2001 wages in their 2001 joint return. According to petitioners’
attachment to their 2001 joint return, they did so in reliance on
section 1.931-1, Income Tax Regs., that the Treasury promulgated
under old section 931 and that we found in Specking was obsolete
with respect to taxpayers who earned compensation while working
9(...continued)
the date on which petitioners filed that return.
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011