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Income for Bona Fide Residents of American Samoa. On February 6,
1998, respondent issued a refund to Haessly for 1995 for $17,816
in tax, plus $2,691 in accrued interest.
In a notice of deficiency issued to Haessly on April 1,
1999, respondent determined that Haessly was not entitled to
exclude any income for 1995 because his tax home was not in a
foreign country, but in a territory of the United States, and
because he was not a bona fide resident of a specified possession
as defined in section 931(c). In that notice of deficiency,
respondent also made certain computational adjustments to
itemized deductions resulting from the adjustment to income.
Discussion
Section 61(a) provides that gross income means all income
from whatever source derived. That section has been interpreted
broadly to encompass all gains except those specifically exempted
by Congress. E.g., Commissioner v. Glenshaw Glass Co., 348 U.S.
426, 430 (1955). Exclusions from income, furthermore, are
construed narrowly, and taxpayers must bring themselves within
the clear scope of the exclusion. E.g., Rule 142(a);
Commissioner v. Schleier, 515 U.S. 323, 328 (1995); Dobra v.
Commissioner, 111 T.C. 339, 349 n.16 (1998). Thus, citizens of
the United States generally also are taxed on income earned
outside the geographical boundaries of the United States unless
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