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petitioner’s earned income for 2002 and 2003 is exempt from U.S.
income tax. The supplement also explains the reason for
respondent’s determination regarding petitioner’s claim that all
of his wages were exempt from income tax. In the supplement,
respondent states:
Article 20 of the treaty between the United States and
Belgium allows residents of Belgium to exempt from
United States taxation income received for the primary
purpose of teaching or engaging in research, or both,
from a university or other recognized educational
institution for a period of 2 years from the date of
arrival if invited by the United States Government or
of a university or other recognized educational
institution.
You did not show that you were invited to work for the
primary purpose of teaching or research. You stated on
your 2002 income tax return that your occupation was
‘Anesthesia Trainee’, and that your purpose for coming
to the United States was for ‘Training (Medical
Specialty) [sic]. On May 30, 2003 we received your
signed response to our request for additional
information regarding your 2002 claim for treaty
benefits. Your response included a work phone number
at Maimonides Medical Center for Resident Training,
which shows that you were still in residency training
as of that date. That shows that you were not in the
United States for the primary purpose of teaching or
research in 2003. The certificates you provided from
Fairview Hospital and Maimonides Medical Center show
that you were in the United States as a resident in
Internal Medicine and Anesthesiology, which means your
primary purpose was residency, not teaching or
research.
Based on the above facts, the income you received is
not exempt from U.S. income tax under Article 20 of the
income tax treaty between Belgium and the United
States.
Article 21 of the treaty allows you to exempt up to
$2000 of earned income per year for the first five tax
years you are present in the US for training if you
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