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circumstances test of section 1.861-4(b)(1), Income Tax Regs.13
(providing generally that income from labor or services is
sourced where the services are performed), all his income should
be sourced in American Samoa. He contends that the source of his
income should not be determined solely by counting the number of
days he performed services in American Samoa. He points out that
he received his wages in American Samoa and that his employer’s
contract was with an American Samoan cannery. Petitioner
contends that, because of those activities, his fishing-related
income was sourced exclusively in American Samoa.
13 Sec. 1.861-4(b)(1)(i), Income Tax Regs., provides as
follows:
If a specific amount is paid for labor or personal
services performed in the United States, that amount
* * * shall be included in the gross income. If no
accurate allocation or segregation of compensation for
labor or personal services performed in the United
States can be made, or when such labor or service is
performed partly within and partly without the United
States, the amount to be included in the gross income
shall be determined on the basis that most correctly
reflects the proper source of income under the facts
and circumstances of the particular case. In many
cases the facts and circumstances will be such that an
apportionment on the time basis will be acceptable,
that is, the amount to be included in gross income will
be that amount which bears the same relation to the
total compensation as the number of days of performance
of the labor or services within the United States bears
to the total number of days of performance of labor or
services for which the payment is made. In other
cases, the facts and circumstances will be such that
another method of apportionment will be acceptable.
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