Dave Arnett - Page 7

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          Antarctica.  If Antarctica is not a “foreign country” for                   
          purposes of section 911, petitioner must include in income the              
          wage income he earned in Antarctica.                                        
          IV.  Caselaw                                                                
               In Martin v. Commissioner, 50 T.C. 59 (1968), we decided a             
          similar issue--whether a U.S. citizen can exclude income earned             
          in Antarctica.  We held that Antarctica is not a foreign country            
          within the meaning of section 911(a)(2) and section 1.911-                  
          1(b)(7), Income Tax Regs., as in effect in 1962.                            
               In Martin, the taxpayer, as an employee of a private tax-              
          exempt U.S. organization, took part in an Antarctic expedition.             
          The taxpayer claimed, as does petitioner, that his earnings in              
          Antarctica were exempt from tax under section 911, and the only             
          question raised in this respect in Martin was whether Antarctica            
          is a foreign country.                                                       
               In finding that Antarctica is not a foreign country within             
          the meaning of section 911(a)(2), we relied on a treaty effective           
          June 23, 1961, between the United States and a number of other              
          nations regarding Antarctica.  The Antarctic Treaty, Dec. 1,                
          1959, 12 U.S.T. 794.  The treaty provides that Antarctica is to             
          be used for peaceful purposes, that scientific investigation                
          there is to be encouraged, and that all questions of sovereignty            
          over it are to be put in abeyance.                                          






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