Tuesday, October 24, 2017

Case of the Day: Acone v. Commissioner, 2017 Tax Ct. Memo LEXIS 162 (Tax Ct. Aug. 22, 2017)


Plaintiff is an airline pilot who maintained residence in New Hampshire. From 2006 to 2013, he worked as the pilot for Korean Air Lines, most of whose flights either originated or terminated in Incheon, South Korea. The plaintiff spent a significant amount of time in Korea, usually at the hotel that the airline provided, and maintained regular social life there. But the plaintiff remained a U.S. citizen and maintained his home in New Hampshire with his wife. In his tax return, the plaintiff excluded "foreign earned income," and the Internal Revenue Service sent him a notice of deficiency.

Finding that the plaintiff did not make a permanent home in South Korea, the court found the plaintiff's "abode" was in the United States. Accordingly, the court found the plaintiff was not eligible for the foreign earned income exclusion.


Cross-border taxation! This is a highly interesting area that does not find its way into the courtroom records frequently enough.

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