- 2 -
Held, further, To the extent P’s fishing income in
1995, 1996, and 1997 was earned in international
waters, it is not American Samoan source or effectively
connected income, and it is U.S. source income.
Held, further, P must include in gross income the
amount of State income tax refunds he received in 1995
and 1996.
Daniel R. King and Richard T. Luoma, for petitioner.
Peter C. Rock, for respondent.
COLVIN, Judge: Respondent determined deficiencies of
$18,324, $52,870, and $31,913, and section 6662(a)1 accuracy-
related penalties2 of $3,665, $10,574, and $6,383, relating to
petitioner’s 1995, 1996, and 1997 Federal income taxes,
respectively.
The issues for decision are:
1. Whether the section 931(a) exclusion applies even though
the Secretary has not issued regulations under section 931(d)(2).
We hold that it does.
2. Whether income earned by petitioner from performing
personal services in international waters is American Samoan
source or effectively connected income, as petitioner contends,
1 Section references are to the Internal Revenue Code in
effect for the years in issue. Rule references are to the Tax
Court Rules of Practice and Procedure.
2 Respondent concedes that petitioner is not liable for the
accuracy-related penalty for the years in issue.
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