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regulations in 1985, see T.D. 8006, 1985-1 C.B. 224, that apply
to the year in issue.
These regulations are legislative; therefore, they are
entitled to Chevron deference and are binding on the courts
unless procedurally defective, arbitrary or capricious in
substance, or manifestly contrary to the statute. United States
v. Mead Corp., 533 U.S. 218, 227 (2001); Chevron U.S.A. Inc. v.
Natural Res. Def. Council, Inc., 467 U.S. 837 (1984); Specking v.
Commissioner, supra at 115.
The Internal Revenue Code (Code) does not define “foreign
country” for purposes of section 911. However, section 1.911-
2(h), Income Tax Regs., provides:
(h) Foreign country. The term “foreign country”
when used in a geographical sense includes any
territory under the sovereignty of a government other
than that of the United States. It includes the
territorial waters of the foreign country (determined
in accordance with the laws of the United States), the
air space over the foreign country, and the seabed and
subsoil of those submarine areas which are adjacent to
the territorial waters of the foreign country and over
which the foreign country has exclusive rights, in
accordance with international law, with respect to the
exploration and exploitation of natural resources.
[Emphasis added.]
The parties disagree regarding whether this definition of
“foreign country” includes Antarctica. If Antarctica is a
“foreign country” for purposes of section 911, petitioner may be
able to exclude from income the wage income he earned in
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