- 4 - IV. Conclusion Accordingly, for the reasons stated in Arnett I, Arnett II, and herein, we conclude that petitioner cannot exclude from gross income wages earned during 2000 and 2001 from working in Antarctica. To reflect the foregoing, An appropriate order and decision will be entered. 3(...continued) citation of sec. 863(d) suggesting that sec. 863(d) provided an additional reason to rule against the taxpayer. Id. at 96 (“See also sec. 863(d) (providing that income earned in Antarctica by a U.S. person is sourced in the United States).”). In Arnett v. Commissioner, 473 F.3d at 797, the U.S. Court of Appeals for the Seventh Circuit addressed sec. 863(d) in greater detail, stating: At the outset, we think that it is important to note that considering Antarctica not to be a “foreign country” is compatible with the general statutory scheme. Notably, section 911 is found under subtitle A, chapter 1, subchapter N of the IRC, which is designated “Tax Based on Income from Sources Within or Without the United States.” Part I of this subchapter, entitled “Source Rules and Other General Rules Relating to Foreign Income,” deems any activity in Antarctica to be “space or ocean activity.” In turn, the United States is designated the source country of income from such activity when earned by a citizen of the United States. 26 U.S.C. § 863(d). Although this provision does not provide a definitive answer as to whether Antarctica is a “foreign country,” it supports the conclusion that section 911 is not intended to apply to income earned for services provided in Antarctica. We take this opportunity to state our agreement with the Court of Appeals’ conclusion set forth above. See also HCSC-Laundry v. United States, 450 U.S. 1, 6 (1981).Page: Previous 1 2 3 4Last modified: March 27, 2008