- 9 -
Income from Adjusted
Year Wages other sources gross income
1995 $97,492 ($2,337) $95,155
1996 103,112 16 103,128
1997 100,659 133,363 134,022
1Included in income from other sources is $31,209 of Form
W-2 wages earned by Alicia LePard.
With the 1997 return, Umbach included a Form 2555 on which he
claimed that he had foreign earned income of $100,659 relating to
work performed on Johnston Island, of which $70,000 was an
eligible “foreign earned income exclusion”.
On or about October 7, 1997, Umbach filed a Form 1040X, for
1996 on which he claimed he was entitled to a refund of $18,802
because he could exclude $70,000 from gross income for that year
because “UNDER SECTION 931 AND REGULATION 1.931-1 PERSONS EARNING
INCOME FROM JOHNSTON ISLAND ARE CONSIDERED TO HAVE EARNED INCOME
FROM A FOREIGN SOURCE WHICH CAN BE EXCLUDED AS FOREIGN INCOME.”
On or about April 15, 1999, Umbach filed a Form 1040X for 1995 on
which he claimed he was entitled to a refund of $18,262 because
he could exclude $99,829 from gross income for that year since he
was entitled to exclude earnings from his work on Johnston Island
Atoll. Respondent issued refunds to Umbach for 1995 and 1996 in
the amounts of $17,844 and $18,802, respectively.
In notices of deficiency issued to Umbach for 1995 and 1996
on April 13, 1999, and to Umbach and Alicia Lepard Umbach for
1997 on June 9, 1999, respondent determined that Umbach was not
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011