- 7 - application to them and is obsolete as to petitioners. Id. at 110-111. We reject petitioner’s reliance on section 1.931-1, Income Tax Regs., in the instant case for the same reasons we rejected the taxpayers’ reliance on that regulation in Specking v. Commis- sioner, supra. On the record before us, we find that for the year at issue petitioner may not exclude under section 931 any of the wages that he received from Raytheon during that year while he was residing and working in Johnston Island.6 Specking v. Commis- sioner, supra; see also Farrell v. United States, 313 F.3d 1214 (9th Cir. 2002). We turn now to the determination in the notice that peti- tioner is liable for the year at issue for the accuracy-related penalty under section 6662(a). According to respondent, peti- tioner is liable for that penalty because of negligence or 6Petitioner does not rely on sec. 911 in support of his position that his wage income for 1998 is excludable from his gross income. For the sake of completeness, respondent nonethe- less argues on brief that sec. 911 does not entitle petitioner to exclude his wages for 1998 from his gross income for that year. We agree with respondent. In Specking v. Commissioner, 117 T.C. 95, 111-116 (2001), affd. sub nom. Haessly v. Commissioner, __ Fed. Appx. __ (9th Cir., June 16, 2003), we rejected the taxpayers’ alternative argument that, in the event the Court were to hold that their compensation was not excludable from gross income under sec. 931, such compensation was excludable under sec. 911. For the reasons set forth in Specking, we conclude that sec. 911 does not entitle petitioner to exclude from his gross income for 1998 the wages that he received during that year while he was residing and working in Johnston Island. Id.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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