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for 333 days for 2002 (using an applicable period of May 16,
2001, to May 15, 2002), petitioners pass the foreign physical
presence requirement for both years.
We explain further two of the disputes the parties have in
calculating petitioners’ foreign physical presence.
Respondent treats each day that involved a partial day of
travel for petitioners in international waters as a nonforeign
day. As explained, however, section 1.911-2(d)(2) and (3),
Income Tax Regs., provides that a partial day of travel in
international waters in traveling from one foreign country to
another foreign country be treated as a full foreign day.
Respondent argues that Myron’s testimony does not establish
petitioners’ presence in Costa Rica from December 1 to
December 19, 2001, and respondent asserts that those 19 days
should not count as foreign days for petitioners.
We find Myron’s testimony to be credible. Furthermore,
Myron’s testimony was corroborated. The yacht was docked in
Costa Rica for the entire month of December 2001, and Myron’s
testimony regarding petitioners’ travel to the United States in
December 2001 was consistent with Myron’s testimony that his
vacation each year in the United States lasted only 2 weeks.
Respondent argues that petitioners’ initial Forms 2555-EZ
indicate that petitioners were located in the United States for
the entire month of December 2001. We disagree. Petitioners’
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