T.C. Memo. 2007-245
UNITED STATES TAX COURT
MATTHEW G. NEWCOMB, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 6610-05. Filed August 27, 2007.
Larry D. Harvey, for petitioner.
Randall L. Preheim, for respondent.
MEMORANDUM OPINION
VASQUEZ, Judge: This case is before the Court on
respondent’s motion for summary judgment pursuant to Rule 121.1
1
Unless otherwise indicated, all Rule references are to
the Tax Court Rules of Practice and Procedure, and all section
references are to the Internal Revenue Code in effect for the
years in issue.
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After a concession,2 the sole issue for decision is whether
petitioner can exclude from income wages earned during 2001 and
2002 from working in Antarctica.
Background
At the time he filed the petition, petitioner resided in
Williams Bay, Wisconsin. During 2001 and 2002, petitioner
performed services at McMurdo Station in Ross Island, Antarctica.
On his 2001 and 2002 Federal income tax returns, petitioner
excluded wage income earned and received during 2001 and 2002 for
services performed in Antarctica.
Discussion
I. Summary Judgment
Rule 121(a) provides that either party may move for summary
judgment upon all or any part of the legal issues in controversy.
Full or partial summary judgment may be granted only if it is
demonstrated that no genuine issue exists as to any material fact
and that the legal issues presented by the motion may be decided
as a matter of law. See Rule 121(b); Sundstrand Corp. v.
Commissioner, 98 T.C. 518, 520 (1992), affd. 17 F.3d 965 (7th
Cir. 1994). We conclude that there is no genuine issue as to any
material fact and that a decision may be rendered as a matter of
law.
2
Respondent concedes that no penalty pursuant to sec. 6662
is due from petitioner for 2001 and 2002.
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II. In General
Section 61(a) provides that gross income means all income
from whatever source derived. Accordingly, citizens of the
United States generally are taxed on income earned outside the
geographical boundaries of the United States unless the income is
specifically excluded from gross income. Specking v.
Commissioner, 117 T.C. 95, 101-102 (2001), affd. sub nom. Haessly
v. Commissioner, 68 Fed. Appx. 44 (9th Cir. 2003), affd. sub nom.
Umbach v. Commissioner, 357 F.3d 1108 (10th Cir. 2003).
Exclusions from income are construed narrowly, and taxpayers must
bring themselves within the clear scope of the exclusion. Id.
III. Section 911
In Arnett v. Commissioner, 126 T.C. 89, 91-96 (2006) (Arnett
I), affd. 473 F.3d 790 (7th Cir. 2007) (Arnett II), we addressed
the arguments made by the parties herein regarding section 911.
The U.S. Court of Appeals for the Seventh Circuit, to which an
appeal of the case herein apparently lies, agreed with our
analysis of section 911 and affirmed our conclusion that
Antarctica is not a “foreign country” pursuant to section 911 and
the regulations thereunder. Arnett v. Commissioner, 473 F.3d at
799. We shall not repeat our analysis from Arnett I herein. We
follow our analysis and holding in Arnett I and the analysis and
holding of the Court of Appeals in Arnett II, to which an appeal
of the case herein apparently lies.
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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 2001 and 2002 from working in
Antarctica.
To reflect the foregoing,
An appropriate order and
decision will be entered.