1 Unless otherwise indicated, all section references are to

the Internal Revenue Code in effect for the year in issue.

T.C. Memo. 2008-7

UNITED STATES TAX COURT

JOHN K. YAMASAKI, Petitioner v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

Docket No. 20712-03. Filed January 22, 2008.

John K. Yamasaki, pro se.

Randall L. Preheim, for respondent.

MEMORANDUM OPINION

VASQUEZ, Judge: Respondent determined a deficiency in and a

section 6662 penalty on petitioner’s 2000 Federal income tax.1 
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2 Respondent concedes that no penalty pursuant to sec. 6662

is due from petitioner for 2000.

After a concession,2 the sole issue for decision is whether

petitioner can exclude from income wages earned during 2000 from

working in Antarctica. 

Background

At the time he filed the petition, petitioner resided in

Tucson, Arizona. During 2000, petitioner performed services at

McMurdo Station in Ross Island, Antarctica. On his 2000 Federal

income tax return, petitioner excluded wage income earned and

received during 2000 for services performed in Antarctica. 

Discussion

I. 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.
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3 In Arnett v. Commissioner, 126 T.C. 89 (2006), affd. 473

F.3d 790 (7th Cir. 2007), we concluded our Opinion with a

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

(continued...)

II. 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 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.3
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3(...continued)

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). 

III. 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 from working in Antarctica.

To reflect the foregoing,

An appropriate decision

will be entered.